Wallstreetcn
2024.09.17 16:52
portai
I'm PortAI, I can summarize articles.

SpaceX and United Airlines sign the largest IFC order in history, doubling in-flight WiFi orders to 2,500 aircraft

SpaceX's "Starlink" satellite network currently has about 6,400 satellites, providing internet services to various regions globally, including remote areas and passengers on airplanes. A director at SpaceX stated on Tuesday that "Starlink" signed a major contract with United Airlines last week, nearly doubling their in-flight WiFi orders. United Airlines announced last week that they will install "Starlink" WiFi on over 1,000 aircraft and provide it free of charge to passengers. Prior to this, "Starlink" also partnered with companies such as Hawaiian Airlines and Qatar Airways. As of now, "Starlink" has secured contracts for 2,500 aircraft

As global travel demand recovers, in-flight internet services are becoming a new focus of competition for airlines.

A senior executive at SpaceX said on Tuesday that last week, the "Starlink" satellite internet division under SpaceX signed a major contract with United Airlines, marking a nearly doubling of its in-flight WiFi orders.

"Starlink" is a satellite internet project under SpaceX, aiming to provide internet services globally by launching a large number of satellites, allowing people to access the internet whether they are in cities, rural areas, or even on airplanes.

The department is currently entering the in-flight WiFi market, with United Airlines announcing last week that they will install "Starlink" WiFi on over 1,000 aircraft, and this service will be free for passengers.

Nick Galano, Director of Airline Sales and Partnerships for "Starlink," said:

"We are very excited, we now have contracts for approximately 2,500 aircraft. "Starlink" started small initially, but is now rapidly expanding. We believe this service will be welcomed by passengers and airlines worldwide."

Largest In-Flight Order for "Starlink" to Date

This contract with United Airlines is the largest order for "Starlink" to date. Over the next few years, United Airlines will gradually install "Starlink" WiFi on aircraft and phase out existing four WiFi providers: Viasat, Panasonic, Thales, and Gogo.

SpaceX has previously collaborated with other airlines, including Hawaiian Airlines, Qatar Airways, Japan's Zipair, Latvia's airBaltic, and semi-private charter company JSX, to provide them with in-flight WiFi services.

Since its debut in 2020, SpaceX has been steadily expanding its "Starlink" network and product services. Initially focused on providing internet services to regular users, "Starlink" is now entering other markets such as large customer markets like airlines and shipping companies, providing them with in-flight or on-sea internet services.

According to SpaceX's data, there are currently about 6,400 "Starlink" satellites operating in space, providing internet services to over 3 million customers in 100 countries. Galano, head of Starlink, said that the network capacity of Starlink is very large, much more powerful than traditional network systems. Currently, the satellite system can provide a capacity of about 100 times that of old systems, with a network capacity of approximately 300 terabits per second, capable of handling a very large amount of data.

SpaceX is continuing to increase the network capacity of "Starlink." They plan to launch a rocket every three days on average this year to send new "Starlink" satellites into space, expanding the coverage and capacity of network services.

To speed up the installation of aircraft network systems, SpaceX is working to simplify the installation process, aiming to complete it in one day. This installation process, known as "retrofitting," is a hassle for airlines because it requires the aircraft to be grounded for several days to upgrade or replace satellite communication systems. Galano said, "SpaceX is simplifying this installation process and hopes to complete the retrofitting in one day, which has already been proven on Hawaiian Airlines and JSX aircraft." "

In contrast, Delta Air Lines' retrofit process takes longer because they have a larger volume of retrofits, averaging three days. Glenn Latta, the person in charge of Delta Air Lines, mentioned that Delta's retrofit process is more complex because they have to retrofit 1,200 aircraft, while SpaceX only needs to retrofit 66 aircraft for Hawaiian Airlines to install "Starlink" (by mid-2024). Moreover, their satellite system retrofit includes removing the existing satellite communication system on the aircraft and then installing the new system. The situation is different for Hawaiian Airlines because they have never installed a satellite communication system on their aircraft, which is one of the differences between the two.

Delta Air Lines relies on Viasat to provide onboard WiFi services and decided to offer free WiFi to members in early 2023. Latta stated that this decision is very worthwhile for the airline, as it is a strategy to attract high-end customers in competition with United Airlines. He also mentioned that by providing free WiFi, Delta Air Lines has attracted 3 million new SkyMiles members.

With the expansion of the aircraft WiFi market, the future air travel experience will be more convenient and enriched, and passengers will enjoy faster and more stable network services.

"