SpaceX reportedly in advanced talks with Saudia for onboard WiFi
According to a Bloomberg report, the Elon Musk-owned company is in advanced talks with Saudia to equip its fleet of more than 140 aircraft with its high-speed onboard wifi, according to people familiar with the talks.
The wire agency had earlier reported that SpaceX was also in advanced talks with the Dubai-based Emirates, and said it is now in discussions with its sister carrier flydubai. Another person familiar told Bloomberg that the company has also pitched its services to Gulf Air, Bahrain's national carrier.
Saudia, flydubai and Gulf Air did not respond to the agency's request for comments. The deals are not final and the airlines could decide to partner with other providers, the people cautioned.
'Securing partnerships with one of the biggest Middle Eastern carriers would represent a significant milestone for Starlink as it pushes further into the global market for in-flight connectivity and challenges established players like Viasat Inc.,' the report added.
A deal with Saudia would give SpaceX a foothold in the Gulf's biggest economy, at a time when local rival Neo Space Group, owned by Saudi Arabia's sovereign wealth fund, is working on establishing its own satellite-based in-flight service.
Rossen Dimitrov, the Saudia chief guest experience officer who previously worked at Qatar Airways, wrote on LinkedIn that he recently visited the SpaceX industrial complex in Texas to learn 'about the exciting future they are bringing to aviation'.
SpaceX markets its Starlink service to airlines through a subscription model similar to its consumer offering. Airlines face upfront hardware costs that amount to anywhere between US$300,000 and US$500,000, depending on the aircraft, in addition to a monthly fee for every seat, according to a document seen by Bloomberg News.
Saudi's new airline Riyadh Air, set to start commercial operations by the end of the year, has partnered with Viasat.
The report added that because Starlink isn't authorised for use in the UAE, any deal with the Emirates or flydubai would likely require a reversal of that policy.
Earlier this year, Qatar Airways became the first carrier in the region to offer the service. The airline made Starlink available across the cabin of its Boeing 777 models, and the company has started retrofitting its Airbus A350 jets, with the 787 Dreamliners up next.
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