In-flight Wi-fi to make money for airlines in 5-6 years: report
In-flight Wi-fi will start to make money for airlines around the middle of this decade, when over 35% of the active global commercial fleet is expected to be equipped with systems to support such service, IMS Research reports in a new market study.
“Initially, the revenue generated by in-flight connectivity systems will be used to pay off the purchase of the hardware. But, what we understand from airlines [is] they will be able to make that money in five to six years, and beyond that there will be profit,” IMS Research market analyst, automotive and transportation group Parmjit Bhangal tells ATI.
“That’s the optimistic forecast that the airlines have spoken to us about.”
At the end of 2009, nearly 700 aircraft in the US domestic fleet were equipped with Aircell’s air-to-ground (ATG)-based in-flight Wi-fi solution, while a growing roster of airlines in Asia, Europe and the Middle East had adopted offerings supported by Inmarsat L-band satellites, including GSM/GP
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