Musk’s SpaceX and Amazon in Talks with British Airways Owner for In-Flight Wi-Fi Deal

British Airways owner IAG SA is in discussions with Elon Musk’s SpaceX and Amazon as it seeks to enhance its in-flight connectivity through satellite-based Wi-Fi. The airline group, which also owns Iberia and Aer Lingus, is considering multiple providers, including SpaceX’s Starlink and Amazon’s Project Kuiper, for outfitting its fleet with high-speed internet. 

IAG’s head of innovation, Annalisa Gigante, revealed in an interview with Bloomberg that while no decision has been made, the airline is excited about the possibilities. “We are working a lot, both with Starlink and with Amazon’s Kuiper,” Gigante said, adding, “We’ve got some really exciting things coming up, but that’s going to be for next year.”

These discussions highlight a broader shift in the aviation industry, as satellite internet providers are increasingly vying for contracts with major global airlines. The race is fueled by the growing demand for better in-flight connectivity, with satellite constellations now in low Earth orbit offering faster, more reliable internet services. Traditional in-flight Wi-Fi systems, often plagued by high costs and limited bandwidth, are being replaced by more efficient and cost-effective solutions. As bandwidth from low-orbit satellites increases, the quality of in-flight internet is expected to more closely resemble the seamless web experience passengers are accustomed to on the ground.

Starlink, SpaceX’s internet-from-space initiative, has already made significant strides, providing service to over four million customers through a network of thousands of satellites in low Earth orbit. However, while Starlink’s growth has been impressive, it faces challenges in the aviation sector. For European carriers like IAG, the certification process required to offer the service is more complicated than for US airlines, which have already been able to implement Starlink with ease following certification by the Federal Aviation Administration (FAA). 

IAG is currently evaluating several options, including the timeline and technical requirements needed to launch the new service across its fleet. Gigante noted that British Airways would need separate certification from Iberia to offer Starlink, a factor that complicates the process further. “There has been an announcement frenzy,” she said, emphasizing that IAG wants to ensure the service is ready for full implementation before making any public announcements.

Meanwhile, Amazon’s Project Kuiper is expected to launch its first operational satellites in early 2025, with service set to begin later that year. While Amazon has not commented publicly on its discussions with IAG, its entry into the satellite internet market is anticipated to intensify competition, as more airlines seek to upgrade their in-flight connectivity.

The move to satellite-based Wi-Fi is gaining momentum beyond IAG, with other airlines also turning to Starlink for their connectivity needs. United Airlines made headlines in September with a deal to provide Starlink service across its fleet, marking a significant win for SpaceX in the aviation sector. Internationally, AirBaltic is set to become the first European airline to offer Starlink Wi-Fi, with other carriers like Qatar Airways, Air New Zealand, and ZIPAIR Tokyo also partnering with the company. These deals reflect the growing global trend toward using satellite technology to enhance the passenger experience.

Starlink’s rapid growth in the residential, maritime, and aviation sectors is putting pressure on traditional satellite internet providers such as Viasat and Gogo. Viasat, which acquired Inmarsat last year, has historically been a key player in in-flight broadband, including a partnership with IAG announced in 2017. However, analysts suggest that while established providers like Viasat may continue to dominate for the next few years, Starlink’s rapid expansion and broader customer base are beginning to reshape the competitive landscape. With Starlink already serving millions of customers and growing its presence in the aviation industry, the next few years are likely to see a major shift in how airlines provide in-flight connectivity.