Cost sensitivity among airlines has led to caution as they waited for the technology to mature to ensure they do not have to replace the systems after two years. The market is now at a point where airlines feel more comfortable adopting this next generation technology. Options for providers include connectivity providers, software/hardware providers, and satellite firms. Jan-Peter Gaense, head of passenger experience products and solutions at Lufthansa Systems, predicts a wave of mergers among the 17 or so connectivity companies as competition in the market intensifies.
A study by the London School of Economics predicts that onboard broadband could generate close to $30 billion in ancillary revenue, doubling profits for airlines by 2035. Additional benefits to onboard wifi include the airlines themselves using broadband connectivity to increase maintenance efficiencies, such as spending less time grounded due to the ability to request parts en route.
Click here to read the full article.