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Chinese airlines poised for windfall as in-flight network fosters e-commerce

09/29/2017| 10:44:32 AM|

Chinese carriers are expected to gain a significant share of the estimated $130 billion global in-flight broadband ancillary revenue by 2035.

China, the world’s fastest-growing commercial aviation market, is poised to see its airline industry generate greater revenue as more carriers provide e-commerce services to passengers over their in-flight broadband systems.

The mainland, which has the world’s largest smartphone and online retail markets, is predicted to corner a considerable share of the estimated USD 130 billion of global in-flight broadband-enabled ancillary revenue forecast for airlines by 2035.

“We can expect to see significant growth in China because passengers prefer to bring their personal electronic devices on board to access their choice of content and services, as they would enjoy on the ground,” Otto Gergye, the vice-president for Asia-Pacific at British satellite telecommunications company Inmarsat, told the South China Morning Post on Thursday.

“In-flight broadband is able to bring about tremendous customer service and revenue possibilities for airlines, brands and internet companies.”

His comments followed the release on Wednesday of a research study on the emerging in-flight market segment, Sky High Economics, by the London School of Economics and Political Science in association with Inmarsat.

Airlines in Asia-Pacific can expect to see the greatest opportunity from in-flight broadband-enabled ancillary services, with total revenue projected to reach USD 10.3 billion on the back of passenger growth and wide availability of such services, according to the study.

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TAGS: Chinese airlines | ancillary
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