The result is air carriers the world over offering more robust inflight WiFi services. According to Routehappy’s 2017 WiFi report, nearly 40 percent of all flights globally either already offer WiFi service or soon will. US airlines lead the development, with 83 percent of flights now offering WiFi access, the report said.
“The industry has made great strides since last year’s report,” according to the Routehappy survey. The research found aircraft WiFi access is up 8 percent globally since 2016, “with more aircraft connected than ever before, including 11 airlines that now offer inflight WiFi for the first time.”
In response to customer demand, there’s been a “dramatic shift away” from basic WiFi access to faster systems on aircraft. Currently, 7.2 percent of flights offer top-tier WiFi access (with speeds capable of streaming video), up 1.2 percent from 2016. An additional 61 percent offer “better” WiFi (full web browsing with limited streaming capability), while a minority of flights (31.9 percent) still have basic, low-speed WiFi, a drop of 9.1 percent between 2016 and 2017.
Connecting Partners
The escalating demand for a better inflight WiFi experience is leading the aviation industry to launch a number of the initiatives. One such is the Seamless Air Alliance; its five founding members – Airbus, Delta, OneWeb, Sprint, and Bharti Airtel (“Airtel”) – have announced the alliance is now open to new industry players with the mission of creating seamless WiFi connectivity for passengers on the ground and in the air.
The purpose, according to the organization’s website, is to “accelerate the introduction of technologies on board airplanes to enable passengers to use their connected devices (smartphones, tablets, laptops, watches, IoT devices), in a seamless way.” The aim is to let passengers connect their devices seamlessly “without any login or credit cards needed, enabled through your current mobile operators platform.”
Among the first to join the alliance is inflight WiFi pioneer Gogo. “We look forward to working with the Alliance to develop future generations of inflight connectivity, which will provide airline passengers worldwide with simple, fast and reliable connectivity,” says Michael Small, CEO of Gogo.
Another collaboration across the Atlantic called the European Aviation Network is planning to introduce the first hybrid satellite and air-to-ground network. Combining high-speed broadband satellite coverage with a complementary 4G LTE ground network, EAN is designed to provide connectivity across all 28 European Union states, specifically in high-traffic flight paths and busy airport hubs.
The system, which is a partnership between Inmarsat and Deutsche Telekom, has already passed initial airworthiness tests by regulators and launched its S-band satellite. Meanwhile, the airlines of launch partner IAG Group, British Airways, Iberia, Aer Lingus and Vueling, are in the process of outfitting their aircraft with the new technology. The goal is to have 90 percent of IAG’s short haul fleet retrofitted by early 2019.
The EAN system promises to deliver speeds of over 50GB per second, offering reliable broadband service in the air that matches what passengers have come to expect on the ground. After years of delay, the project is tentatively set for a June rollout, although no date has actually been announced for the first fully operational flights.
What Passengers Expect
As ground-based systems have become faster and cheaper, consumers have come to expect WiFi connectivity to be everywhere. But the challenges of technology, standardization and cost at 35,000 feet have proven to be more daunting.
However the work appears to be gaining ground. A new study by the London School of Economics in collaboration with Inmarsat estimates that inflight connectivity will be a market worth $130 billion by 2035. In real terms, the analysis found that on average inflight connectivity will make passengers $4 more valuable to airlines through ancillary revenues, adding to the current ancillary revenues of $17 per passenger.
Based on current IATA data and industry sources, the study predicts broadband enabled ancillary revenues for airlines will come from four main revenue streams:
• Broadband access charges – providing connectivity to passengers inflight
• e-commerce and destination shopping – making purchases on-board aircraft with expanded product ranges and real-time offers
• Advertising – pay-per-click, impressions, sponsorship deals with advertisers
• Premium content – providing live content, on demand video and bundled W-IFEC access
According to the RouteHappy survey, JetBlue is leading the way among US carriers offering the best WiFi, while some United aircraft also are equipped with high-speed Internet access. Worldwide, Delta, United, American, Emirates, and Southwest had the greatest percentage of their flights equipped with WiFi (as calculated by airline seat miles, or ASMs).
However airlines in Asia-Pacific also appear to be making moves to better integrate it into their aircraft and improve their offerings.
• Singapore Airlines has begun offering complimentary inflight WiFi to premium travelers as well as PPS Club members when flying on-board select aircraft.
• All Nippon Airways (ANA) will introduce free WiFi on its domestic fleet beginning April 1. The service will be made available on 100 planes to passengers of all classes by the end of 2018 and will be marked by the ANA WiFi service logo near the entrance.
• Cathay Pacific Group’s entire wide-body fleet will be outfitted with inflight WiFi. The rollout is expected to begin in mid-year, with completion currently slated for 2020.
• Australian carriers Qantas and Virgin Australia have both been running domestic trials. Air New Zealand, which will utilize Inmarsat’s new global GX satellite constellation, is in the process of adding it to its aircraft.
• And Japan Airlines recently began offering free WiFi on all domestic flights.
