American Airlines to Offer Free In-Flight WiFi to Loyalty Members, Bypassing Starlink for Viasat and Intelsat
American Airlines has announced that it will begin offering free in-flight WiFi to members of its loyalty program starting January 2024. This service, sponsored by AT&T, will be available on approximately 90% of the airline's fleet, totaling close to 1,000 aircraft. By the end of 2025, American Airlines plans to equip more than 500 regional aircraft with high-speed internet, provided by Viasat and Intelsat. The initial rollout is set for January next year. American Airlines is the last of the traditional “Big Three” U.S. airlines to introduce free WiFi to its loyalty program members. Delta Airlines previously offered free WiFi to most domestic flight loyalty program members but required payment for service on long-haul, wide-body aircraft. In September 2022, United Airlines struck a deal with Elon Musk's Starlink to provide free WiFi across its more than 1,000 planes over several years. United Airlines is expected to conduct its first regional flight equipped with Starlink next month, with the first mainline aircraft ready by the end of the year. JetBlue has been offering free WiFi for over a decade, and Hawaiian Airlines became the first U.S. carrier to install Starlink. Musk's satellite service appears to have influenced more airlines to consider the value of providing free, high-speed WiFi. Last October, JetBlue tested Starlink's service on its first flight, achieving speeds of up to 215 megabits per second, which surpasses the internet speeds in many homes. In contrast, Viasat and Intelsat rely on geostationary satellites, which orbit at a much higher altitude than the low Earth orbit (LEO) satellites used by Starlink. These satellites cover specific regions, though Viasat is developing its own high-capacity satellite constellation, and Intelsat has partnered with Starlink competitor OneWeb. In February 2022, Intelsat achieved a speed of 150 megabits per second during a test flight from Anchorage, Alaska, to the Arctic Circle using OneWeb satellites. Industry insiders generally view American Airlines' partnership as an endorsement of the existing satellite service providers, particularly Viasat and Intelsat. As one of the largest airlines in the U.S., this move is expected to enhance American's domestic route competitiveness. The collaboration between Viasat and Intelsat underscores their technological capabilities and innovation in the satellite internet sector, potentially leading to more stable and faster connections for users. Currently, OneWeb is operated by the French company Eutelsat, whose stock has risen by 68% since the beginning of the year. This increase can be attributed to concerns over potential disruptions to Starlink service in Ukraine. Eutelsat's service and its competition with Starlink have solidified its position as a significant player in the satellite internet market.
