United Airlines to Offer Free Wi-Fi as Part of Starlink Deal – Daily News

Authors: Mary Schlangenstein and Loren Grush | Bloomberg

United Airlines Holdings announced a deal for SpaceX’s Starlink technology to power its onboard Wi-Fi system, becoming the first major U.S. carrier to use the satellite system.

The airline will begin testing the service early next year and introduce it to passenger flights in late 2025, the companies said in a statement Friday. Starlink will eventually be available for free across the carrier’s entire fleet of more than 1,000 planes, on seatback screens and personal electronic devices.

Airlines have been pushing for years to provide fast, reliable in-flight Wi-Fi instead of the spotty, inconsistent offering that has long plagued passengers. Expanded satellite capacity has helped create an internet experience closer to what consumers on the ground expect, an offering that both vacationers and business travelers alike consider essential.

“Aviation was the last area of ​​the satellite communications market where Starlink did not become an industry leader,” William Blair analyst Louie DiPalma said in a note. “However, Starlink is positioned to have the highest share of the aviation market over the next decade, as this groundbreaking deal will likely lead to other wins.”

Viasat, currently one of United’s Wi-Fi providers, will likely remain the market leader in five years, given the slow nature of the industry, he said.

DiPalma said the Starlink rollout on United flights will likely take three years as Starlink works to obtain regulatory approvals, making the financial benefits to Starlink “almost negligible” for the next two years.

United shares were up 0.9% as of 9:37 a.m. in New York. Shares of broadband providers Gogo Inc. and Viasat Inc., which also offer in-flight Wi-Fi, fell.

Low latency

Starlink is SpaceX’s ever-expanding space internet initiative, consisting of over 6,300 satellites in relatively low Earth orbit. Together, the satellites work in tandem to beam broadband internet coverage to the ground below. Unlike other satellite internet systems in much higher orbits, Starlink’s closer proximity to Earth reduces latency because signals have to travel a shorter distance from the ground to the satellites.

In the U.S., only Hawaiian Holdings Inc. and public charter carrier JSX currently use Starlink.

The Starlink gate-to-gate service on United flights will enable access to personal streaming services and online shopping, enable a single user to connect to multiple devices simultaneously and enable the downloading, editing and sending of documents in real time, the companies said.

“Everything you can do on the ground, you will soon be able to do on a United plane at 35,000 feet,” United CEO Scott Kirby said in a statement.

The airline has Wi-Fi through several companies, including Panasonic, which provides connectivity worldwide on some Airbus SE and Boeing Co. aircraft, including wide-body planes for international flights. Viasat’s coverage includes the U.S., Canada, Mexico, Central America, the Caribbean and Europe. Thales SA has service in the continental U.S., while Gogo Intelsat covers domestic markets on United’s regional aircraft.

Outside the United States, Qatar Airways QCSC and Air Baltic Corp. use Starlink services, while Air New Zealand Ltd. and ZIPAIR Tokyo Inc. have announced agreements with the company.

Originally published: September 13, 2024 at 8:45 AM