Musk’s Starlink Aims to Enhance In-Flight Wi-Fi Services for Luxury Airlines

In the past three years, Elon Musk has made significant strides in the growing in-flight Wi-Fi market. His Starlink service has formed partnerships with prestigious airlines like Air France, Qatar Airways, and United Airlines.

This Wednesday, Alaska Air Group unveiled plans to adopt Starlink starting next year, while Virgin Atlantic finalized a deal to use the SpaceX-owned satellite network earlier in July. Interestingly, British Airways, a strong competitor, might also be in negotiations, potentially allowing Musk to capture another significant player in the lucrative trans-Atlantic market.

But Musk’s ambitions are not just limited to the West; he is now targeting the Middle East, which hosts some of the world’s most innovative airlines and serves as a major hub for long-distance travel.

Bloomberg reported that SpaceX has initiated discussions with Emirates, the Dubai airline known for operating the largest fleet of long-haul Boeing and Airbus aircraft. Musk’s team has also pitched Starlink to other carriers like Gulf Air and FlyDubai, and is reportedly in advanced talks with Saudia, the third-largest airline in the region.

Securing partnerships with Middle Eastern airlines, particularly esteemed brands like Emirates, could provide Starlink with a notable edge against established rivals such as EchoStar Corp., Viasat Inc., and SES SA.

These competitors are not standing still; they are revamping their business strategies and aggressively seeking new partnerships as competition escalates in the fast-growing $100 billion satellite communications market.

SpaceX has successfully carved out a niche in the global aviation sector by offering the fastest internet speeds available through its fleet of approximately 8,000 satellites. The company employs a subscription model, where airlines pay for hardware installation along with a monthly fee for per-seat internet access.

For example, retrofitting Starlink on a Boeing 737 costs about $300,000, while installing it on a larger 787 Dreamliner is approximately $500,000 per aircraft, according to a document reviewed by Bloomberg. Monthly seat costs can vary based on contract lengths, with reports suggesting Starlink has offered services for around $120 per month per seat, plus an additional $120 for live television.

Negotiations are still in progress, and airlines may take various approaches, according to insiders. FlyDubai is “currently evaluating various options for connectivity to support our growth plans.” Gulf Air opted not to comment, Saudia did not respond to inquiries, and Emirates reaffirmed its commitment to exceptional in-flight service without commenting on the deal, while British Airways’ parent company, IAG, also refrained from commenting.

Once, in-flight internet access was a rare and unreliable service, making it costly for airlines to implement and for passengers to use. However, many carriers are now striving to provide fast and reliable options, as enabling customers to stream, work, and communicate during long flights can significantly improve the cabin experience.

Strategically savvy airlines are also reaping the benefits of the positive attention associated with Musk’s celebrity. Qatar Airways CEO Badr Mohammed Al-Meer expressed genuine excitement during a video call with Musk during a Starlink trial at 30,000 feet last October, with Musk assuring that the Starlink internet “is only going to get better.”

Since then, Musk’s public perception has shifted from that of an industry innovator to a controversial figure due to his involvement in the DOGE government-busting initiative during President Donald Trump’s administration. This has resulted in mixed reactions from consumers, positioning Musk as a polarizing figure.

With the relationship between Trump and Musk now strained, some countries may hesitate to authorize Starlink, concerned about being associated with the SpaceX CEO, particularly those with historical ties to the former president.

“There’s an increasing awareness of this political fallout, reflected in the declining sales of Tesla vehicles,” stated Tim Farrar, a technology consultant and analyst at TMF Associates. “Airlines might decide to bide their time.”

Starlink’s aviation terminals have been noted to be less expensive compared to some competing products and can be installed more quickly, as acknowledged by United Airlines.

The Starlink network transmits signals to aircraft similarly to its six million residential, mobile, and maritime active users: a terminal about the size of a pizza box is mounted on the aircraft, connecting to a network of satellites orbiting roughly 350 miles (around 560 kilometers) above the Earth, in low-Earth orbit (LEO).

In contrast, traditional operators like Viasat and SES have achieved global coverage with a limited number of larger, more powerful satellites positioned about 65 times higher, in geostationary orbit.

Due to the longer distances signals must travel, legacy satellites typically result in slower internet connections during flights.

Given the rising expectations for broadband speeds from any location, traditional satellite service providers are looking to adopt SpaceX’s model.

EchoStar, Viasat, and SES have started offering multi-orbit solutions directly to airlines, combining capabilities from various satellite constellations, both in geostationary orbits and those closer to Earth.

Recently, Viasat announced partnerships to improve in-flight connectivity with American Airlines and Riyadh Air. Intelsat, recently acquired by SES in July, highlighted collaborations with Thai Airways International and manufacturer Embraer.

A multi-orbit network “provides resilience, consistency, and allows network operators to adapt to environmental changes such as weather or aircraft concentration in specific areas,” mentioned Andrew Ruszkowski, global head of aviation at SES.

Major carriers such as Delta Air Lines Inc. and JetBlue Airways Corp. are currently adopting a cautious approach concerning Starlink. Representatives from both airlines have declined to comment on ongoing talks with SpaceX.

Their hesitance may derive from SpaceX’s ongoing challenges and regulatory barriers as it works to broaden and enhance its network.

SpaceX and airlines have experienced disagreements during negotiations where Starlink requires carriers to provide complimentary Wi-Fi to all passengers. Occasionally, Starlink has been flexible on this stipulation due to airlines’ requests to limit service to loyalty members. Further discussions are ongoing with other airlines regarding this matter.

Additionally, SpaceX insists that airlines must agree to equip their entire fleet with the technology before finalizing any contract, a risky proposition for airlines with large inventories.

United’s ambitious investment in Starlink has already encountered obstacles. Earlier in June, the airline reported issues with static interference affecting its Starlink system, leading to a temporary suspension of Wi-Fi on two dozen regional flights. United has since resolved the issue and has fitted 60 of its regional Embraer aircraft with Starlink.

Separately, about 60,000 users faced service disruptions during an extended outage on July 24, followed by another brief service interruption on August 18.

Aviation industry executives have noted that Starlink is not permitted in many countries, necessitating airlines to deactivate internet service before landing. Competition is expected to increase with the upcoming launch of new networks like Telesat Corp.’s Lightspeed and Amazon.com Inc.’s Project Kuiper—backed by Musk’s rival, Jeff Bezos.

Musk announced in May that Saudi Arabia would approve Starlink for aviation and maritime uses. Currently, however, the service is not authorized for use in the United Arab Emirates, where Emirates and FlyDubai are based.

The race for connected skies is warming up and could yield unpredictable outcomes. Nevertheless, industry leaders emphasize that Starlink’s data speeds are unparalleled, customer feedback has been mostly positive, and Musk has a proven history of revolutionizing traditional industries, from space exploration to automotive manufacturing.

“The consensus is that people are astounded by the speed and the capability to stream, FaceTime, or Zoom,” stated Alex Wilcox, CEO of JSX, which offers Starlink-enabled Wi-Fi to its passengers on 30-seat aircraft. “I believe they are on track to dominate the market, and rightly so.”

© 2025 Bloomberg

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