Forget detailed RFP cycles or convoluted consulting agreements. When it comes to considering SpaceX’s Starlink as a potential in-flight internet service provider airBaltic CEO Martin Gauss took to Twitter.
A decade ago the carrier chose the A220 (CSeries at the time) as the future of its fleet. It planned to offer in-flight WiFi service as part of the on-board passenger experience. But Gauss remains unimpressed by the options currently available. “The solution offered when you buy the aircraft is too expensive and the business case does not make sense. We will have it only when the business case makes sense.”
Can Starlink deliver the right economics for the company? Perhaps that will be the result of Gauss’s Tweet. Or maybe it was just a bit of smart negotiating.
Gauss notes that Starlink is the only potentially viable in-flight internet solution airBaltic has not tested. And the timing of the query comes with a bit of external influence as well.
“Since they had a lot of publicity here from helping Ukraine I thought it was worth asking,” Gauss explains. “And it worked, because now we have several meetings with suppliers to talk about [options].”
Airfare for PaxEx.Aero to meet with Mr. Gauss was paid for by airBaltic. As always, our opinions remain fully independent.
Each and every initiative at airBaltic, from opening a new base in Tampere to converting all its owned ground vehicles to electric to tokenizing its loyalty program, must deliver its own direct positive impact to the bottom line. There will be no borrowing from the marketing budget to pay for the on-board connectivity like at some other airlines. Nor is Gauss willing to let the offering operate at a loss.
And because it is much, much harder to back out the expenses of this commitment compared to some of the others, airBaltic wants to be far more certain it can fly without burning company cash. Gauss explains, “The business case is the main thing. I want internet connectivity, but I’m not doing it like many other airlines, bringing something on board that costs us a lot of money and doesn’t deliver to the passengers.”
Whether the Starlink solution can deliver a viable business model for airBaltic remains unclear. SpaceX signed Hawaiian Airlines and JSX as customers. They expect to have planes fitted and a solution certified hopefully later this year. But neither of those airlines will be certifying the A220, and that’s just one facet of the challenges in getting to a viable business model for an airline that expects the offering to be revenue positive from the start.
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And when WiFi comes to airBaltic, it will also include in-seat USB power. Gauss recognizes the value of that association. “It is not so complicated to put a USB outlet on the seat. We haven’t done it because we are short on investment capital. If we found a positive business case, we would do it. Especially for Dubai and the Canary Islands it would be useful, but it is super rare that anyone even asks about it.”
More Starlink IFEC news:
- True global coverage: Starlink expects inter-satellite links fully online by Q1 ’23
- SpaceX secures mobility rights from FCC
- Dash 8 adds IFE/C with Starlink option
- SpaceX secures mobility rights from FCC
- In-flight connectivity’s next major hurdle: Smaller planes
- Hawaiian Airlines gets online with Starlink
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