The first iteration of in-flight WIFI was created by Boeing in April 2000. The company named the service “Connexion” and were expecting it to be a huge hit with flyers. The company spent the next six years improving and promoting the service even though they knew that most of their passengers did not own a WIFI capable laptop. Even those who did own such a machine would often have it in checked baggage rather than their carry-on bag – people were happy to go without their computer for the duration of their flight.
It’s important to remember that the first smartphone was not launched until 2007 – one year after Boeing finally abandoned their Connexion service. At the time, the chairman, president, and CEO of Boeing said:
“Over the last six years we have invest substantial time, resources, and technology into Connexion by Boeing. Regrettably, the market for this service has not materialized as had been expected.”
With the Benefit of Hindsight…
It’s easy to see that Boeing was way ahead of their time when they launched Connexion. It’s especially interesting to speculate regarding what may have happened differently if Boeing had been aware that a device like the iPhone would be released during the next twelve months. Would they have kept Connexion running? Would the iPhone have helped to create the market that the CEO said had failed to materialize? Let’s investigate the current state of inflight connectivity (IFC) and see if it provides any answers to these questions.
The Current State of Inflight Connectivity
Today, airlines consider their inflight connectivity (IFC) services as a means of encouraging passenger satisfaction and brand loyalty. IFC can also directly affect the return on investment of many routes if the majority of passengers choose to use the airlines IFC service. This demonstrates just how thin the margins must be for airlines in today’s marketplace.
Studies suggest that passengers do not view IFC as a primary reason to choose a specific airline. Despite this, those same passengers are increasingly demanding high quality IFC when they fly. Immarsat and GfK performed a large-scale study which suggested 83% of passengers prefer to fly with an IFC-enabled airline, and 60% went even further by suggesting inflight WIFI was not a luxury feature but an absolute necessity.
These are huge numbers – Boeing closed their Connexion service in 2006 because it had failed to become profitable. In 2022, 60% of passengers consider such a service to be essential, and IFC can even have a direct impact on the ROI of many routes. This is a huge difference that has occurred in a relatively short period of time. The next question is why do passengers consider IFC to be so important? What are they using it for during flight? Let’s take a look.
What do Passengers do with their Device whilst in the air?
How many times have you seen another person walking down the street with their phone in their hand, seemingly captivated by whatever they are doing with the device? Some studies have suggested that up to 15% of people check the notifications on their device more than 30 times an hour. The largest group – 42% of the people in the study – checked their device around 10-12 times per hour. If the vast majority of passengers feel the need to look at their phone every five minutes, its easy to see why IFC services have now become so popular.
Despite the fact that cell towers are inaccessible whilst at the normal cruising speed of an aircraft, passengers now expect to be able to use their phone to do the same things in the air as they do whilst on the ground. High speed WIFI allows passengers to watch their favorite shows on Netflix or YouTube, play online games, watch or even make in-play bets on their favorite sports team, or simply browse their feeds on Instagram, Facebook, and Twitter.
In the past, sports fans were simply out of luck if a game was happening whilst they were in-flight. There as no way for these passengers to watch the game in real-time. Thanks to IFC, sports fans can now watch their favorite team regardless of being in the air. Almost half of the states in the USA are now able to place legal sports bets online, and one of the latest developments is legal online betting in Virginia.
The Future of Online WIFI
Airlines are slowly waking up to the importance of IFC – if these businesses can offer a fast internet service whilst at 40,000 feet, it can make all the difference between them failing to make a profit from their routes or remaining competitive within their industry.
Several companies now offer a complete white-label IFC service to airlines, and this is must cheaper for to implement than developing a new service from scratch as Boeing did between 2000 and 2006. The IFC services offered by these companies are expected to have a radical impact on the entire airline industry over the next few years.
Passenger expectations are only going to continue growing, and airlines have no choice but to try their best to meet those expectations if they want to stay in business. As a result, the airline industry is going to be fascinating to watch over the next few years.