Comment by hattmall
6 months ago
I think Airplanes are going to be pretty profitable. They are sort of running a market cornering operation there. But, there will be competition eventually. Starlink is way faster than the alternatives so most airlines have switched and Starlink has rapidly increased their prices for aviation. Idk if it's enough though, they are definitely running lots of promos for home customers.
That sounds pretty niche. And airlines have already extremely thin margin (that have been eaten by fuel price increase). I wouldn’t be surprised if they drop that type of luxury
It’s another product for airlines to sell and make money off. It also serves to keep passengers entertained and content. It’s going to be a very strong market for Starlink IMHO.
Anything at sea, too. Going on a cruise? The cruise ship can offer you Wifi backed by Starlink for another few bucks. Or even your cell provider could get you hooked right up to Starlink for some phones.
Container ships, military vessels, even fishing expeditions could enjoy an internet connection and cell service.
It's big in the recreational boating community, as those folks generally have the disposable income to support a SpaceX ISP subscription.
Worldwide there's roughly 30 million recreational boats, whereas for commercial aircraft carrying people (not cargo) is more like 30k, so different orders if magnitude. It's highly likely boating would be a more profitable industry to satisfy demand for than airlines in the long term. That is unless they're charging exorbitantly more for airline contracts than personal boat use, which is totally possible.
Amazon Leo just signed delta as a customer so competition is indeed close behind.
I think SpaceX is an incredible company but at this valuation I’d expect it to have something as pervasive as the iPhone or Nvidia chips. It seems to have only small niches.
But you're just looking at internet.
SpaceX has the lion's share of the world's launch market, if you include Starlink.
https://x.com/FutureJurvetson/status/2038811249232732275
Delta’s ViaSat based Wireless is fine. The latency is hire. But it really isn’t a competitive disadvantage.
If Starlink becomes common enough on flights, I absolutely believe it will be a competitive disadvantage.
I have been flying a lot post Covid between it being a hobby of ours and consulting - I’m currently Platinum Medallion on Delta.
Frequent flyers choose their airlines for a lot of reasons - which airline has the most direct flights from their city, who has the best frequent flyer program, etc. The latency of the Internet is seldom a factor or the difference between 10Mbps and 50Mbps.
Non frequent flyers just buy the cheapest flights. The major three airlines make money off of business travelers, business and first class flights and credit cards.
would you choose a flight that's $200 more expensive because it has starlink?
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