Emirates Airlines is currently in discussions with SpaceX, the company owned by billionaire Elon Musk, to enhance its onboard internet service. As the largest international airline, Emirates aims to upgrade its wireless internet offerings for passengers during flights.
The airline is considering a deal to equip its wide-body aircraft with SpaceX’s Starlink internet services.
According to Bloomberg, SpaceX has engaged in talks with Emirates, which boasts the world’s largest fleet for long-haul flights consisting of Boeing and Airbus aircraft. Musk’s team has also approached other airlines like Flydubai and Gulf Air, with advanced negotiations ongoing with Saudi Arabian Airlines, as per informed sources.
Negotiations are still in progress, and strategies may vary amongst the companies involved.
Emirates has expressed its commitment to providing top-notch service on board, while Flydubai stated, “We are currently assessing various connectivity options to support our growth plans,” according to Bloomberg.
Over the past three years, Elon Musk has steadily positioned himself in the booming market for inflight Wi-Fi services, securing contracts with prominent companies such as Air France and United Airlines for Starlink.
Alaska Air Group plans to start installing Starlink services next year, and Virgin Atlantic reached an agreement in July to utilize SpaceX’s satellite network.
Informed sources suggest that British Airways may soon join the ranks too, potentially giving Musk another leading airline on the lucrative transatlantic route.
Middle East Market
However, Musk’s eyes are set on a larger prize: the Middle East, home to some of the most innovative airlines shaping industry trends and serving as a global hub for long-distance travel.
Securing partnerships with Middle Eastern airlines, particularly those recognized as luxury brands like Emirates, represents a pivotal moment in Starlink’s global competition against traditional operators such as Echostar, Viasat, and SES.
These competitors are not ready to give up their market share without a fight. They are restructuring their plans and actively pursuing a series of deals as they ramp up competition for a rapidly expanding slice of the $100 billion satellite communications market.
SpaceX’s Strong Position
SpaceX has carved out a niche in the global airline market by offering the fastest industry internet speeds, powered by approximately 8,000 satellites.
The company provides Starlink technology on a subscription basis, where airlines pay for equipment installation and a monthly fee per seat for connectivity.
For instance, the cost to install Starlink on a Boeing 737 is about $300,000, while for the larger 787 Dreamliner, the price rises to around $500,000 per aircraft, according to a document reviewed by Bloomberg. Monthly service fees can vary based on numerous factors, including the contract duration agreed upon by the airline, with some deals reportedly established at about $120 per month per seat, plus an additional $120 for live TV, according to a source.
Historically, inflight internet access has been perceived as both unreliable and expensive, whether for airlines during installation or passengers during use. Many companies are now striving to offer faster and more reliable alternatives, as enabling customers to stream, work, and communicate on long flights can be a game-changer in the cabin experience.
Following SpaceX’s Lead
The Starlink network transmits signals to aircraft in a manner similar to how it connects to its 6 million active users across residential, mobile, and maritime sectors. A device the size of a pizza box is mounted on the aircraft, linking to a series of satellites positioned roughly 350 miles (about 560 kilometers) above the Earth in low Earth orbit (LEO).
In contrast, traditional operators like Viasat and SES have achieved global coverage with a smaller number of much larger and more powerful satellites positioned at a height approximately 65 times greater in geostationary orbit.
Because these satellites are farther from Earth, the data has to travel longer distances, which can sometimes result in slower internet connections during flights. However, with the increasing demand for broadband speed from any location, traditional satellite operators have begun adopting approaches akin to SpaceX.
Recent months have seen Echostar, Viasat, and SES introducing multi-orbit solutions directly to airlines by integrating available capacities from a variety of satellites operating in both geostationary and low Earth orbits.
In recent announcements, Viasat disclosed new agreements to enhance inflight connectivity with American Airlines and Riyadh Air, while Intelsat, now part of SES, revealed partnerships with Thai Airways International and aircraft manufacturer Embraer.