Topic Author
Posts: 144
Joined: Tue Oct 12, 1999 4:02 am

In-flight Connectivity: Costs Borne By The Airline

Fri Jun 28, 2013 3:23 am

For my Master thesis, I conduct a cost-benefit analysis of in-flight connectivity (onboard internet and mobile phone usage) from the perspective of a hypothetical airline. For the financial analysis I still lack certain assumptions and maybe someone can share their experience/knowledge regarding any of these points:

- Equipment Costs: I assume that final IFC equipment prices and the corresponding revenue share between airline and connectivity provider are subject to individual negotiations and agreements. However, are there any official list prices for IFC equipment/complete IFC solutions? I'm only familiar with the rough figures per aircraft of 100,000 USD for air-to-ground equipment and 200,000-300,000 USD for satellite connectivity solutions (Ku-Band).

- Installation Costs: What are the required days and staff for the installation of different types of IFC equipment? I would assume overnight installations for air-to-ground equipment, but how many days and man-hours are required for more sophisticated installations like Row 44? What is a feasible assumption for the hourly costs of the corresponding airline maintenance staff?

- Fuel Burn: What is the effect of different IFC antennas/radomes on aircraft fuel consumption (weight/drag)? I mostly heard of figures in the range of +0.5% for Ku-Band radomes on short-haul aircraft, but would assume the effect is smaller on long-haul aircraft.

- Revenue Share: What are the most common revenue share agreements between airlines and connectivity providers? Roughly speaking, to which degree is revenue sharing influenced by how much the airline pays for the equipment (e.g. up-front payment of 30% of actual equipment costs relates to a share of only 30% revenues for the airline)? Are the installation costs (vs. equipment costs) usually completely borne by the airline?

Thanks for your insights or links to other sources.

Who is online

Users browsing this forum: VC10DC10 and 18 guests

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos