Airlines should not expect their inflight connectivity solutions to be profitable. At least not directly so.
That was the message delivered by Norman Haughton, Air Canada‘s Director of IFEC Product and Analytics, at the World Aviation Festival last week in Amsterdam. But he is not worried about the service disappearing from the fleet. Rather, he sees the maturing inflight connectivity platform as delivering so much indirect value that it drives revenue, loyalty, and customer satisfaction.
The break-even point would require extremely high take rates. We’re not seeing take rates at a price that would cover the costs.– Norman Haughton, Air Canada‘s Director of IFEC Product and Analytics
So, what is the critical use case that allows Haughton to convince management the service is worth paying for? Ultimately it is the desire to deliver a high quality passenger experience, not just an internet connection. But that manifests itself in many ways.
There’s more to the story…Dig deeper with a PaxEx.Aero Premium Subscription
More news from World Aviation Festival 2022
- Looking Beyond NPS as a customer satisfaction metric
- easyJet snags AirFi for digital inflight transformation
- Airlines see a renewed digital transformation push from IATA
- Can inflight Wi-Fi ever be profitable?
- BAGTAG targets North American expansion, adds homing solution
- AirFi LEO aims to alter the inflight retail landscape
- Pairing, casting and streaming: The next generation of inflight entertainment emerges
A favor to ask while you're here...
Did you enjoy the content? Or learn something useful? Or generally just think this is the type of story you'd like to see more of? Consider supporting the site through a donation (any amount helps). It helps keep me independent and avoiding the credit card schlock.