The Starlink satellite internet service was rolled out by the company on Tuesday.
Monthly service costs between $12,500 a month and $25,000 a month are what the company charges for the hardware needed to connect a jet to Starlink. The company said that deliveries to aviation customers will start in mid-2023 and that reservations need to be made with a $5,000 initial payment.
The flat-panel antenna that customers would install on top of an aircraft is advertised by the company. Most of the aircraft that it is seeking FAA certificates for are private jets.
According to the company, Starlink aviation customers can expect speeds up to 350 Megabits per second, which will allow all passengers to access streaming- capable internet at the same time.
Video calls, online gaming, virtual private networks and other high data rate activities can be engaged in by passengers.
Customers will have to arrange the installation of the antenna with a provider according to the company.
The hardware is under warranty for as long as you subscribe to the service, and the company does not require a long-term contract.
One of the company’s flat aviation-specific Starlink antennas is seen on top of an aircraft.The company signed agreements with Hawaiian Airlines and a private charter provider to provide wi-fi on planes. The aviation wi-fi market is ripe for an upgrade, and up until now has been approved to conduct a limited amount of inflight testing by the company.
The latest offering is a direct challenge to the leading provider of inflight internet. In a note to investors on Wednesday, William Blair analyst Louie DiPalma said that the Starlink product appears to be too big and too expensive to challenge Gogo's position in the small- to-midsize business jet market.
Gogo shares have been pressured by the entry of Starlink. Because of its unique air-to-ground cellular network, we think that Gogo will be able to fend off competitors. Over 6,600 business jets are served by the dominant provider of inflight internet, and an additional 4,500 are served by satellites.
Morgan Stanley analysts wrote in a note that, while Starlink's "premium pricing" is expected to have "a relatively limited impact to Gogo in the near-term," the new service "highlights growing competitive intensity in a market that Gogo has historically dominated with 80% market share."
In order to deliver high-speed internet to anywhere on the planet, Starlink is being built by the company. $2 billion was brought in by the company this year to fund the development of Starlink and its next- generation rocket.
The FCC has given the go-ahead for the company to provide mobile Starlink internet service, which includes services to residential, business, RV, maritime and aviation customers.
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