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In Flight Wireless Takes Off, Business and Industry Trends Analysis

Airlines in the U.S. and around the world are investing in wireless technology to provide internet access, e-mail capability and, for some non-U.S. carriers, cellphone use while in the air.  Until recently, the technology necessary to provide these services was less than satisfactory and costs were prohibitively high.  Today, new satellite technologies are providing a better experience for users’ in-flight wireless.  Over the mid-term, the launch of thousands of new low-Earth orbit (LOE) satellites will provide much faster airline internet access at reasonable cost.
Unfortunately, the Coronavirus pandemic meant immense drops in both travelers and the amount of Wi-Fi they need.  Global Eagle, provider of Wi-Fi to Southwest Airlines flights, took bankruptcy in early 2020.  GoGo, the inflight Wi-Fi provider to Delta and United, reported huge financial losses in early 2020 and laid off hundreds of employees.  Fortunately, mid-2021 saw a major upswing in air travel.
Airlines including American, Delta, United, Southwest and Alaska (as well as a number of airlines based outside the U.S.), currently offer Wi-Fi service for fees ranging from about $5 to $40 per flight.  Most airlines are in the process of upgrading their satellite service to handle heavy online access for passengers.  In doing so, the airlines are trying to have sponsors cover the cost of in-flight service.  For example, JetBlue’s domestic Wi-Fi is sponsored by Amazon.
In the U.S., JetBlue Airways Corp. acquired LiveTV, LLC, a provider of entertainment as well as e-mail.  JetBlue is offering the service on its flights and selling it to other carriers such as United Airlines.  In addition, JetBlue has an agreement with satellite communications company ViaSat, Inc. to provide airborne terminals and services for the carrier’s entire fleet of aircraft.  The Viasat-1 aviation broadband network uses satellite signals to provide greater broadband capacity in-flight.  Global Eagle Entertainment (“Gee Media”) acquired Row44, a provider of in-flight broadband entertainment based in Westlake Village, California, which had outfitted aircraft for Southwest, Norwegian Air Shuttle and Icelandair.
The challenge for in-flight wireless has been and continues to be the use of cellphones.  Passengers consistently state that they absolutely do not want to be forced to listen to other passengers’ cell phone calls.  Limiting the services available is the answer.  One technology for in-flight calls, which is provided by Geneva-based OnAir (owned by the internet technology firm SITA), uses a low-power onboard network that captures passengers’ phone signals and links them to a satellite for transmission to ground receivers.  Airlines can control which services they wish to offer: text messaging, internet access, telephone calls, etc.  Some airlines may choose to define quiet times when phone calls may not be made.  The firm also serves private aircraft and cruise ships.
Lufthansa worked with Panasonic to provide improved in-flight broadband service.  The service, called FlyNet, costs as much as $100,000 per airplane (which covers installing antennas and other equipment).  Lufthansa is betting on the popularity of the service.  However, passengers may not make phone calls on this system. 
Airlines and the wireless providers are working to improve satellite connectivity, increasing speeds and making streaming live video while flying possible.  Inmarsat’s Global Xpress service, an in-flight wireless provider, claims transmission speeds of 50 Mbps.
 


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