From Cost Center to Economic Driver: How Airlines that Partner with SES can Accelerate Revenue with Satellite Inflight Wi-Fi

In 2003, Lufthansa became the first commercial airline to offer its passengers access to internet connectivity during a flight. Passengers traveling from Munich to Los Angeles paid $30 to access a very slow and unstable inflight Wi-Fi service. Despite its limitations, the mere ability to access any degree of connectivity at 35,000 feet was met with enthusiasm and excitement.

Much has changed since that maiden inflight Wi-Fi voyage. As the first satellite operator to bring connectivity to the skies, SES has been a central figure in leading inflight connectivity innovation as well as a firsthand witness to changing passenger expectations.

Today, business and leisure airline passengers expect to have high-performing internet access in the sky. Recent surveys reveal that large percentages of the traveling public not only see connectivity as a necessity, but they expect and demand the same experiences as they have at home or work, with the ability to stream, game, and communicate. Along popular routes where consumer choice is plentiful, flyers are increasingly choosing carriers that can meet these expectations, many of whom today count SES as their inflight connectivity partner.

Over the years, some airlines have been slower to introduce Wi-Fi or upgrade as connectivity technologies have improved, mindful of the costs to outfit their fleets with antennas, modems, and all the necessary equipment. Carriers that continue to view inflight connectivity primarily as a cost center risk missing opportunities to generate new revenues at a time when margins in commercial aviation are as slim as ever.

Advancements in satellite-powered IFC (inflight connectivity) technology, such as SES’s multi-orbit and multi-band solutions in both Ku and Ka bands, have dramatically improved speed, reliability, and coverage. Access to SES satellites in GEO, MEO, and LEO provides an unprecedented level of redundancy and resilience, ensuring passengers remain connected no matter where their airplane flies.

The many innovations spearheaded by SES mean that, in addition to simply charging for Wi-Fi access, airlines can and should now view IFC not as a cost center but an opportunity to generate revenue. Here’s how:

Boosting Loyalty Enrollment and Rewarding High Value Customers

Loyalty programs are of critical importance to airlines, driving customer retention in a fiercely competitive industry. Airlines are constantly exploring ways to increase member numbers by extending special offers and exclusive benefits, like priority boarding, free checked bags, or access to airport lounges. Offering free access to premium inflight Wi-Fi is another carrot that can be used to enlist new members and reward existing customers. Airlines can also use the lure of free premium Wi-Fi to collect valuable customer data that, with their consent, can be leveraged for future marketing and engagement purposes. SES works individually with its airline partners to integrate personalized connectivity experiences into their unique loyalty programs, boosting membership and engagement.

A Premium Advertising Channel for Brands

To advertisers, passengers are a captive and engaged audience and prime targets for marketing messages while in the air. Airlines with high-performing connectivity can offer brands a channel through which they can engage target consumers with dynamic, innovative, and personalized advertising campaigns. From video ads that run before or during entertainment programming to sponsorship space on the portal or login page to highly targeted campaigns, premium connectivity opens the door for airlines to form new partnerships with brand advertisers and unlock incremental revenues. SES partner airlines get access to its ecosystem of content providers, mobile network operators, and brand advertisers, making it easier to connect marketers with passengers in memorable, meaningful, and valuable ways.

Transforming the Seatback Screen into a Storefront

With robust inflight connectivity, airlines can introduce or expand e-commerce activity in the cabin, including offering real-time shopping, personalized offers, or discounts for booking flights. Connectivity makes it easier for passengers to pay for food anytime during the flight, not just when the carts are rolling down the aisles, and purchase products like headphones, blankets, digital services, and more, all of which can help airlines offset costs and increase revenue per passenger.

Improved Operational Efficiency

In addition to dramatically improving passenger experience in the cabin, premium inflight connectivity can also deliver significant operational advantages, allowing airlines to improve efficiency and reduce costs. Access to detailed weather data in real time can help pilots optimize fuel consumption and reroute to avoid turbulence that can cause injuries and, with increased frequency, lead to emergency landings. Airlines can also leverage connected predictive and preventative maintenance applications to capture aircraft performance data and preemptively address issues, accelerating turnaround times and keeping planes in service.

Enhancing Passenger Care

Finally, inflight connectivity allows airlines to better engage directly with their customer and ensure that they are being cared for at all times, such as sharing useful information related to connecting flights or baggage tracking while en route to the destination. The result in higher NPS scores and repeat customers. For its commercial airline partners, SES provides insights and metrics that measure passenger experience and allow airlines to directly correlate IFC investments with the positive impacts on NPS scores.

All airlines are alike in their desire to earn passenger loyalty and trust. However, each also has its own distinct business models, unique cohorts of target customers, and varying levels of digital experience and technical acumen.

SES works in close partnership with each of its 30 commercial airline partners to design and deploy custom connectivity programs that deliver a consistently elevated passenger experience without the technical distractions. Airlines that partner with SES get tailored, scalable, and flexible solutions, all powered by SES technology, designed specifically to meet their unique needs and accelerate revenue growth from IFC investments.