Monday, September 16, 2024

United Bets on SpaceX for Faster and Free Wi-Fi


United Airlines is teaming up with Elon Musk’s SpaceX to offer Free, Faster Onboard Wi-Fi. The Airline says it will start Testing the New Satellite-based Wi-Fi next year, but the Chicago-based Carrier didn’t say how quickly it will roll out, saying only that it expects to have SpaceX’s Starlink service on its more than 1,000 Planes over the next several years.

“Everything you can do on the ground, you’ll soon be able to do onboard a United plane at 35,000 feet, just about anywhere in the world,” United CEO Scott Kirby said in a Statement. “This connectivity opens the door for an even better inflight entertainment experience, in every seatback — more content, that’s more personalized.”

United is the First Major Carrier to sign-up with Starlink. Its Rivals use Intelsat, Viasat, and Panasonic.

Wi-Fi has become a must-have Amenity for Passengers and sometimes a source of Significant Irritation. It’s part of the escalating Arms Race between Airlines to woo Customers with better Creature Comforts.

"Wi-Fi is an expected feature, not an amenity, especially if you’re a business traveler," says Analyst Henry Harteveldt, President of Atmosphere Research Group in San Francisco. "If you’re a business traveler counting on that connectivity to get work done, when it’s not working, passengers are not happy. When corporate accounts are reviewing airlines for employee business travel, one of the things they examine is in-flight connectivity, cost and reliability. They survey their employees. United has not had the best reputation for offering reliable in-flight Wi-Fi."

United's move also reflects the Escalating arms race between Airlines to woo Customers with better Creature Comforts.

United rival Delta Air Lines, offers Passengers in its Loyalty program Free Wi-Fi Domestically, and it recently said it will Expand the Program to International Flights. United's move will put Pressure on American, another Popular Carrier with Business Travelers, to follow suit in offering Free Wi-Fi.

Premium and International Travelers are Key to Kirby’s Strategy to grow United and make it more Profitable.

"If Starlink has a better network and can provide more coverage for transoceanic flights, that’s very important for airlines that want to be viewed as a premium carrier," Harteveldt says. "I'm sure folks at Delta and American are having conversations this morning about what steps do they take."










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