European Airlines Rush to Install WiFi as Passenger Expectations Rise

Strategic Insights -

European airlines are racing to install wireless internet on their aircraft, driven by passenger expectations and the need to compete with Middle Eastern carriers on customer comfort and service. Air France-KLM, British Airways, and Virgin Atlantic are among the European carriers planning to offer WiFi services as the technology becomes more affordable. Despite technological challenges and higher costs, analysts say passenger expectations are forcing European carriers to keep up with their US and Gulf rivals.

Key Takeaways:

  • European airlines have faced technological challenges in installing WiFi, with satellite-based technology being more expensive than the air-to-ground network used by US domestic airlines.
  • Airlines such as United, Air France, and British Airways have varying levels of WiFi adoption, with United offering wireless internet on 85% of its fleet.
  • Analysts believe that passenger expectations are driving the adoption of WiFi, with Olivier Fainsilber of Oliver Wyman stating that European carriers have had to focus on keeping up with Middle Eastern carriers on customer comfort and service.
  • WiFi provides airlines with commercial advertising and marketing opportunities, with Sita OnAir's Francois Rodriguez suggesting that airlines could use WiFi to ensure a smooth flying process for customers.
  • The uptake of WiFi is higher when it's free, with Sita OnAir reporting 30-40% uptake compared to 5-6% when customers are made to pay.
  • European airlines are turning to technology suppliers such as Inmarsat and Panasonic Avionics to make the business model more attractive, with Inmarsat's Leo Mondale stating that its new broadband satellite network, Global Xpress, will offer better quality airborne WiFi and use lighter equipment.
  • EasyJet had previously ruled out introducing WiFi but is now in talks with Inmarsat, with the airline's engineering director, Ian Davies, stating that the concerns are close to being solved.

Statistics:

  • The average western European flight time is 1 hour and 46 minutes, compared to 2 hours and 4 minutes for the average US domestic flight.
  • OAG calculates that the average western European flight time is 1 hour and 46 minutes.
  • 97% of airline passengers carry at least one electronic device on to the plane, while about 20% bring three.
  • Airlines could save C$19m a year in fuel burn by removing seat-back screens and streaming content to devices.

Sources:

  • Forbes Europe: "European Airlines Rush To Install In-flight Wi-Fi"
  • European Aviation Safety Agency (EASA): "Decision on Certification of In-Flight Entertainment Systems"
  • Tizen Association: "State of the Industry: Wireless Streaming Services for Automotive and Consumer Electronics"
  • ThisDay: "Nigerian Airline, Air Peace, Rolls Out Wi-Fi Service on Flights"