LAST UPDATED : 2010-09-02 13:41:17 GMT+7 









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More airlines expected to offer WiFi services

Leong Hung Yee
The Star
Publication Date : 08-03-2010

THE STAR GRAPHICS

Airlines today are offering many more leisure options for travellers - from better in-flight entertainment (IFE) systems to having Internet access onboard.

One of the latest services offered is in-flight WiFi conncectivity. An aviation analyst said that WiFi services would eventually become the norm on all flights although it may not be available onboard all airlines just yet.

“Customers want to be connected anywhere, any time and they want it to be free,” he said when asked what travellers wanted.

However, he wonders if travellers would still be interested in using airline content, especially their IFE, given the availability of hand-held gadgets and the addition of WiFi on many airlines now.

“With the Internet, options are almost limitless and it will be almost as if you are on the ground,” the analyst said.

A number of airlines have recently started offering WiFi Internet access onboard planes, and more airlines are expected to offer such connectivity in their aircraft.

The market for IFE and connectivity is slowly evolving in Asia Pacific, with most airlines moving towards new avenues of cost-effective technology for both in-flight mobile connectivity and WiFi, according to independent market researcher Frost & Sullivan.

“Unlike North America, where WiFi is preferred, cellular service is the top most priority for airlines in Asia Pacific since there does not seem to be any objection to use cell phones on airplanes,” it said, adding that the potential of IFE and connectivity was robust.

Frost & Sullivan pointed out that Asia Pacific airlines were cash rich and were ready to invest in new IFE and connectivity equipment.

It said there were more than 3,000 commercial passenger aircraft in Asia Pacific, 10 per cent of which were equipped with the latest IFE and connectivity equipment.

The market for IFE and connectivity in Asia Pacific is estimated at US$368.8 million in 2007, and is expected to record a compounded annual growth rate of 12.6 per cent from 2007 to 2012.

The outlook is positive for air traffic in the next five years, although prospects for the Asia Pacific region has been partially overshadowed by the impact of the recent economic turbulence, according to an aviation analyst. He said in-flight WiFi was long overdue.

“But for business travellers, being able to stay connected in flight might be a blessing or a curse. It means you will need to reply e-mails even when you are flying high,” he said in jest.

He expects in-flight WiFi to become a retention benefit for the frequent flyer programme and a new revenue generator for airlines.

A few airlines in the US, which have started offering in-flight WiFi, have received good response from travellers, pushing other carriers to speedily install WiFi on their aircraft as well.

In an earlier interview with StarBiz, Malaysia Airlines (MAS) indicated that passengers could look forward to better cabins and newer IFE systems.

MAS teamed up with AeroMobile Ltd last year to become the first air carrier in Asia to offer in-flight mobile phone and data services.

However, there is no indication from the carrier if it would provide in-flight WiFi in the near future.

AirAsia Bhd is in the midst of launching such connectivity services. The airline will partner OnAir, a provider of air transport-focused applications, to roll out its offerings.

According to OnAir head of public relations and communications, Aurelie Branchereau-Giles, Air Asia X has been planning to install in-flight WiFi.

“We announced in April 2008 that our first customer, Oman Air, was planning to offer OnAir’s full spectrum of connectivity solutions (mobile and WiFi Internet) and the services went live on March 1 this year,” she said in an email reply.

Branchereau-Giles said it was still too early to provide any feedback on the usage of the service as Oman Air went live only early this month.

She added that Saudi Arabian Airlines, Egypt Air, Afriqiyah Airways and Libyan Airlines had announced that they would equip their Airbus A330 fleet with OnAir’s mobile and Internet services in the near future.

OnAir is currently in discussions with several airlines in this region which are interested in having connectivity solutions.

“OnAir doesn’t decide on the pricing. However we believe that offering both GSM/GPRS (mobile telephony) together with WiFi Internet improves airlines’ economics, hence impact positively the price of WiFi (by reducing it),” she said.

According to a survey by WiFi Alliance, in-flight WiFi connectivity is becoming a highly valued airline amenity among frequent fliers and business travellers.

The survey pointed out that travellers would be willing to make significant sacrifices or change travel plans to ensure WiFi access while in the air - 76 per cent would choose an airline based on the availability of in-flight WiFi; 55 per cent would shift their flight by one day if it meant having in-flight WiFi; and 71 per cent would opt for a flight with WiFi access over one that provided meal service.

Another in-flight WiFi provider, Aircell, reveals that more than 65 per cent of business travellers and one third of all leisure travellers in the US carry laptops onboard when they fly.

Over the past year, Aircell has steadily increased the daily number of airplanes deployed with Gogo Inflight Internet service.

“Starting with only a handful of planes, availability and usage have expanded rapidly and Gogo served one million customers in October 2009. At the current rate of expansion and with users fast approaching 100,000 per week, the two millionth user is now expected to be reached in early 2010,” it said.

A year ago, there was limited Internet access onboard flights but hopefully WiFi will be so common that there is no reason why you cannot reply e-mails even if you are flying across the Pacific Ocean.



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