Aviation Broadband Won’t Fly with Per Flight Pricing
2008-08-05 10:43:00
Aviation Broadband Won’t Fly with Per Flight Pricing
ARLINGTON, Va.–(EMWNews)–While in-flight connectivity announcements from Southwest, Alaska,
Virgin America, JetBlue, and American Airlines have been covered
extensively in the press, the aviation broadband industry has been 12-18
months away from large deployments for the last seven years. And while
some airlines have delayed airborne Internet for customers, many others
have installed wireless access points across their fleet for FOQA
(Flight Operations Quality Assurance). But in order to bring cabin
communications up to the level of crew operations, service providers
will need to develop new pricing structures, according to a new report
from Freesky Research.
“If the airline broadband industry wants to
move beyond the wait ‘til next year philosophy
that has defined it since 2001, it needs to lose its fixation with per
flight pricing,” according to David Gross,
author of the report. “Either it needs to
charge exceptionally high per minute rates like providers serving
business jets and cruise ships do, and serve a high-end niche only, or
move to subscription services like most terrestrial hotspot services.
The mushy middle approach of charging more than a ground service, but
less than a business jet service will neither attract the mass market,
nor maximize revenue among price-insensitive travelers.”
In addition to pricing, this study, titled Aviation Broadband Networks:
2009-2012, looks at technology developments and economic issues driving
the growth of data services on both business jets and airliners. It is
available for sale now, and includes forecasts for both satellite and
air-to-ground services.
About Freesky Research
Based in the Washington, DC area, Freesky Research is an industry
analyst firm covering data communications in air & space.
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