From ‘nice to have’ to ‘must have’: The demand for IFC on low-fare airlines

In-flight connectivity on low-fare airlines and regional carriers is becoming more prevalent. Bernie Baldwin reports on how and why the market has shifted.

” From ‘nice to have’ to ‘must have’  ” was originally published in the April/May 2025 edition of LARA. To read more articles similar to this, apply for your complimentary subscription today.

Post-pandemic priorities – Evolving expectations in in-flight connectivity

For many years, passenger entertainment offered by regional carriers and low-fare airlines amounted to in-flight magazines and whatever reading material and electronic devices passengers brought with them.

But Maik Brückner, Senior Director Commercial Aviation – Europe for Viasat, has observed changes in demand for in-flight Wi-Fi.

He says: “This expectation is driven by the ubiquitous use of personal devices in everyday life and the increasing need to stay connected for work, entertainment and communication throughout their journeys.

“Our airline customers are prioritising Wi-Fi as a key differentiator to help them drive loyalty, increase passenger touchpoints, introduce revenue streams, and compete.”

John Wade, Vice President, Connectivity Business Unit at Panasonic Avionics, takes a similar view.

He says: “During the pandemic, it became increasingly important for people to stay connected to family, friends, and colleagues, and connectivity was the principal way that people communicated.

 “The trend towards free Wi-Fi is becoming increasingly prevalent across the airline industry, putting pressure on low-fare and regional carriers to match these offerings to remain competitive.

“This shift is not only driven by passenger expectations but also by airlines, who see the potential to bring in revenue through Wi-Fi-enabled services and targeted advertising.”

Increased demand – Driving passenger expectations and connectivity growth 

According to Robert Knapel, Vice President of Commercial Aviation Products at Intelsat, high-speed Wi-Fi has gone from being a “nice to have” to a “must have” in all aspects of people’s lives.

“That includes when they are on an aircraft, even on short flights,” he says. “That’s led low-fare airlines and regional carriers to evaluate the latest technologies to see if there is a good fit for their business model and passengers.”

Eutelsat OneWeb’s head of commercial aviation, Claire Gombault, is in general agreement.

She says: “There is little doubt that passenger demand for connectivity is as real on a regional or low-fare carrier aircraft as on a full-service narrowbody or widebody aircraft.

“The decision is no longer ‘Do we want to offer Wi-Fi?’ but ‘What kind of user Wi-Fi user experience do we want to offer?’”

Job Heimerikx, CEO of AirFi, cites three major trends in in-flight Wi-Fi demand among low-fare and regional carriers in the wake of the pandemic.

“First, there is in-seat ordering and revenue growth,” he says. “Airlines initially turned to in-seat ordering to minimise crew interaction with passengers during Covid, but the practice has since proved to increase onboard sales significantly. Some airlines saw a rise of up to 20 per cent in in-seat ordering revenue.

“Next there is pay-per-access content. Passengers can make micro-payments to access exclusive movie libraries, creating a new ancillary revenue stream.

“Finally there is affordable, non-invasive connectivity. Messaging services, rather than full browsing or streaming, fulfil the core passenger need of staying connected.

“AirFi’s minimally invasive window-mounted solution offers an affordable alternative, allowing airlines to provide essential connectivity without long-term financial burdens.”

The trend towards free Wi-Fi is starting to put pressure on low-fare and regional carriers. Image: Panasonic Avionics

Low and high – Innovations in low-cost and high-bandwidth IFC Solutions

The AirFi CEO identifies the connectivity technologies that have been popular with these types of airlines and highlights two main approaches.

“First, there is basic, low-cost messaging connectivity,” he says. “Many airlines seek solutions that meet the fundamental need of staying connected, primarily for messaging services. For this group, the priority is minimal cost across installation, maintenance, and operations.

“Second is high-bandwidth, streaming-ready connectivity. This involves installing satellite-based connectivity, requiring a dome antenna on the aircraft, with installation taking a significant amount of time.

“We believe this market segment will be dominated by providers that can offer high-speed, low-latency internet at the lowest cost.”

Technology-wise, Brückner points to Viasat’s European Aviation Network solution that has been built to support intra-European travel.

“Its low-weight and low-drag equipment can be a great choice for airlines looking to achieve sustainability goals while providing a high demand in-flight Wi-Fi offering,” he says.

“We’re also starting to see increased interest from low-fare and regional airlines in dynamic passenger portals, the ‘front door’ to an airline’s brand when a passenger connects.

“These portals can bring together a host of in-flight services within a single portal interface, enabling airlines to drive value through IFC.”

Smaller and lighter – LEO (Low Earth Orbit) innovations

Intelsat’s newest IFC solution uses an electronically steered array (ESA) antenna that is smaller and lighter than traditional gimballed antennas, according to Knapel.

He says: “Because it has no moving parts, the antenna is more reliable and can be installed in as little as two days on aircraft of all sizes.

“Intelsat’s ESA is also able to connect to satellites in different orbits. The multi-orbit service means passengers get a highly reliable and high-quality experience as that single antenna can connect to the Intelsat fleet of approximately 60 geostationary (GEO) satellites, as well as Eutelsat OneWeb’s low-earth orbit (LEO) satellite network.

“GEO networks provide reliable, high-throughput coverage, while LEO networks offer the low-latency that today’s snappy applications demand.” Panasonic’s Wade openly declares his excitement about the introduction of LEO satellites into the company’s network.

“The low latency of LEO is a step change for IFC because it is less than 100 milliseconds. At that level of responsiveness and speed, we can unlock new passenger experiences including seamless support for enterprise applications, live gameplay, video conferencing and VoIP communication.”

Wade’s airline customers are excited too, he adds. “I’ve had several discussions with airline executives, who may have once believed that capacity was the single most important IFC factor, but they now realise that latency is the real game-changer.

“For as long as I’ve been in this business, the discussions have remained focused on the three Cs of in-flight connectivity – coverage, capacity and cost. One debate among satellite operators is whether GEO service will be cheaper than LEO. Right now, the jury is still out.

“However, if GEO does end up being more cost-effective for our customers, we will use that portion of our network for things like video, streaming and other applications, and use LEO for services requiring low latency.”

In recent years, the practice of in-seat ordering has been shown to increase onboard sales significantly. Image: AirFi

Flexible solutions – How ESA antennas and multi-orbit satellites improve connectivity

Eutelsat OneWeb’s Gombault says her company’s “flexible solutions represent a watershed moment for in-flight connectivity, especially for smaller regional jets that to date have remained largely unconnected”.

She continues: “The introduction of low profile, flat panel, electronically steerable antenna (ESA) arrays, with their lower weight and drag profiles have significantly reduced operating expenditure.

“Second is the LEO network itself, delivering an unprecedented IFC experience through its low latency service. Together with our distribution partners, we’re making it easier for regional and low-fare airlines to build the business case for connectivity.

“With a reduced total cost of ownership and more affordable pricing options, IFC is more accessible than ever.”

Monetising Wi-Fi – How airlines turn connectivity into profit

“While data costs have slightly commoditised, the overall investment remains steep,” says AirFi’s Heimerikx, noting high installation, certification and operational costs.

“On top of that, weight penalties, drag and fuel burn remain barriers for low-fare airlines. Messaging-first models allow airlines to offer basic connectivity at a low price, sometimes even free for passengers, while ancillary revenue strategies help offset costs.”

Viasat’s Brückner highlights a specific solution that has changed the paradigm for some airlines, namely Viasat Ads.

He says: “These directly address the cost barrier, helping airlines monetise their connectivity offering. The sponsored Wi-Fi model, for example, creates a new revenue stream for airlines, offsetting the costs of providing IFC and potentially even generating profit.”

Intelsat’s Knapel says IFC solutions focused purely on connecting the passenger to the internet.

“Now there are several more ways that airlines can extract value. For example, we’ve helped airlines partner with telecommunications providers to offer sponsored services that help offset IFC costs. Advertising is another tool airlines use to help offset the cost of IFC.

“Beyond the cabin, airlines can also use IFC to improve operational performance, which can generate savings that help offset its cost. Real-time credit card authorisation can reduce fraudulent purchases and save costs on airlines’ buy-on-board.

“Access to real-time weather in the flight deck can optimise performance, reducing fuel costs and improving flight safety. Maintenance teams can also benefit from real-time alerts of maintenance issues, enabling them to mitigate potential AOG events that cause delays or cancellations.”

Eutelsat OneWeb’s low-Earth orbit network is delivering low latency in-flight connectivity. Image: Eutelsat OneWeb

Business models – Balancing Cost, passenger demand, and revenue

Panasonic’s Wade says: “Some carriers offer free Wi-Fi to all passengers, viewing it as a competitive advantage, often supported by partnerships, advertising, or including it in the original fare price. Others implement tiered pricing based on usage, flight length or service type. Class-based offerings have become common too.

“Additionally, some carriers integrate Wi-Fi access into their loyalty programmes. These different approaches allow low-fare carriers to balance the costs of providing Wi-Fi with meeting growing passenger connectivity demands.

 “Low-fare airlines specifically are looking at IFC as a revenue-generating service, and it’s our job as responsible partners to help find ways to generate that revenue. Some of our competitors are telling airlines that in-flight Wi-Fi needs to be free of charge.”