Sky’s the Limit: SpaceX and Amazon Vie for British Airways’ Wi-Fi Deal

In a move that signals a significant shift in the airline industry’s approach to in-flight Wi-Fi, International Airlines Group (IAG), the parent company of British Airways, Iberia, and Aer Lingus, is currently in negotiations with Elon Musk’s SpaceX and Amazon to enhance its jet fleet’s connectivity with satellite-powered Wi-Fi services. This development highlights the growing dominance of SpaceX’s Starlink and Amazon’s Project Kuiper in the aviation sector, as both companies aim to replace the outdated, costly, and limited in-flight internet solutions that have plagued airlines for years.

According to Annalisa Gigante, the head of innovation at IAG, the airline group is actively engaging with both Starlink and Amazon’s Project Kuiper to explore the best options for outfitting its planes with faster, more reliable Wi-Fi. The final decision, however, has yet to be made as the company is considering several alternatives. Gigante shared these insights during an interview with Bloomberg, revealing that 2025 is likely to be the year when significant advancements in this area are expected.

The Rise of Satellite Internet: A Revolutionary Change for Airlines

The ongoing discussions reflect a broader trend within the aviation industry, as satellite constellations orbiting closer to Earth are poised to revolutionize the way airlines offer Wi-Fi. The increasing bandwidth from these satellites has enabled a more reliable and seamless internet experience that mirrors what consumers expect when browsing from the comfort of their homes.

Starlink, SpaceX’s internet-from-space initiative, already serves over 4 million customers worldwide, utilizing a network of thousands of satellites in low Earth orbit to provide broadband internet access. As a result, the company has gained significant traction, offering an internet experience far superior to previous, slower in-flight options.

Navigating Certification Challenges

However, one significant obstacle facing Starlink in Europe is the complex certification process required by the European Union Aviation Safety Agency (EASA), which is not as straightforward as it is in the United States. While US airlines like United Airlines have already begun offering Starlink services, European airlines like IAG need to navigate a more rigorous process before they can implement similar technology.

Gigante explained that the certification challenges include securing approval for individual airlines within IAG’s portfolio. For example, British Airways would need separate certification from Iberia, even though both are owned by IAG. Gigante emphasized the importance of ensuring that the technology is ready for widespread implementation before announcing any official deals, highlighting the growing frustration among aviation leaders as they navigate regulatory hurdles.

“I want to make sure that when we announce it, we can actually implement it,” said Gigante.

The Competitive Landscape: Starlink vs. Amazon’s Kuiper

While Starlink has gained momentum, Amazon’s Project Kuiper is positioning itself as a strong contender. Amazon plans to launch its first operational satellites in early 2025, with commercial service expected by the end of 2025. This timeline gives Amazon a head start, but Starlink’s existing operational satellites and established customer base give it a significant advantage in the near term.

The competition between Starlink and Kuiper is shaping up to be a defining factor in the aviation Wi-Fi landscape. Both companies are vying for partnerships with global carriers, and while Amazon has not yet responded to inquiries about the ongoing discussions with IAG, it is clear that the race to offer the best satellite-based internet service is heating up.

Starlink’s Expanding Influence Across the Globe

The partnership discussions with IAG come at a time when Starlink has made notable inroads with several major airlines. In September 2023, United Airlines signed a deal with SpaceX for in-flight Wi-Fi, marking a significant victory for the company in securing major airline partnerships. Additionally, Qatar Airways, Air New Zealand, and ZIPAIR Tokyo have also announced agreements to bring Starlink’s high-speed internet to their fleets.

Starlink’s growing reach is also affecting traditional satellite internet providers, such as Viasat and Gogo, whose stocks have faced pressure as more customers opt for Starlink’s superior service. The rise of Starlink’s internet-from-space has put traditional providers on notice, signaling a major shift in how airlines approach in-flight connectivity.

The Future of In-Flight Internet: The Battle for Market Dominance

Despite its rapid growth, Starlink still faces competition from established industry players. In 2017, IAG signed a deal with Inmarsat, which was later acquired by Viasat in 2023. This partnership has helped IAG continue offering in-flight broadband, but analysts believe that Starlink’s low-orbit satellite system could eventually outpace traditional providers.

However, experts also note that established satellite internet providers like Viasat and Gogo are likely to maintain market leadership for several years. The aviation industry, which is known for its slow pace of change, will need time to fully integrate new satellite-based solutions. Despite this, the future looks bright for SpaceX and Amazon, both of which are already challenging industry norms and setting new standards for in-flight connectivity.

Satellite Internet Providers: A Comparison

Company	Technology	Operational Satellites	Launch Year	Service Start
Starlink	Low-Earth Orbit Satellites	4,000+	2019	Available Now
Project Kuiper	Low-Earth Orbit Satellites	Planned 3,236 satellites	2024 (First launch)	2025

Conclusion

The discussions between IAG, SpaceX, and Amazon reflect a broader trend of innovation and competition in the in-flight internet sector. While Starlink is already on its way to dominating the space, the involvement of Amazon’s Project Kuiper adds a layer of excitement and uncertainty to the market. As 2025 approaches, it will be fascinating to see how these two giants continue to reshape the way airlines offer in-flight connectivity, with IAG’s decision likely to be a turning point in the industry.

For travelers and aviation enthusiasts alike, the future promises faster, more reliable Wi-Fi at 30,000 feet—thanks to the growing impact of satellite technology. As this space evolves, the sky may no longer be the limit for internet access on airplanes.

Also read: Elon Musk’s SpaceX Surpasses $180 Billion Valuation Milestone in Ongoing Share Sale