Saudia, Saudi Arabia’s national airline, is in advanced discussions with SpaceX to equip its fleet of over 140 aircraft with Starlink internet, according to sources familiar with the matter.

The move would expand SpaceX’s presence in the competitive in-flight connectivity sector and could give it a foothold in Saudi Arabia, where local firm Neo Space Group is also developing satellite-based services.

SpaceX is reportedly in talks with other regional carriers, including Emirates, Flydubai, and Gulf Air, but agreements have not been finalized, and the airlines could choose other providers.

Starlink is not currently authorized for use in the United Arab Emirates, and regulatory changes would be needed for deals with Emirates or Flydubai to proceed.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ In-flight internet evolves from premium luxury to essential free service

The aviation Wi-Fi industry has transformed dramatically since its early days as an expensive luxury add-on.

When Lufthansa launched the first in-flight Wi-Fi service in 2004, passengers paid around $30 for access, establishing internet connectivity as a premium offering1. Boeing’s earlier Connexion service, launched in 2000, was discontinued just six years later due to insufficient market demand1.

Today, airlines like United and Air France are adopting Starlink specifically to provide free Wi-Fi service, marking a fundamental shift in how carriers view connectivity2. This reflects broader passenger expectations, as Alaska Airlines reports that about 35% of its passengers use its $8 Wi-Fi service, demonstrating consistent demand even at current pricing levels3.

The move toward free service represents airlines recognizing connectivity as a competitive differentiator rather than a revenue stream, particularly as the global market is projected to grow from $9.2 billion in 2024 to $35.6 billion by 20344.

2️⃣ Starlink disrupts established satellite providers through superior technology

SpaceX’s entry into aviation Wi-Fi directly challenges incumbents who have dominated the market for over a decade.

Hawaiian Airlines became the first major carrier to complete Starlink installations in September 2024, demonstrating the technology’s commercial viability2. This represents a significant competitive threat to established players like Viasat, which has provided aviation internet since partnering with JetBlue in 20131, and Gogo, which launched commercial service in 2008 but sold its commercial aviation business to Intelsat for $400 million in December 20205.

Starlink’s low-latency service enables activities like streaming and video calls that were previously impractical with traditional satellite technology, addressing passenger frustrations with existing systems that typically provide maximum speeds of about 5 Mbit/s compared to terrestrial broadband speeds of 30-67 Mbit/s3.

The technology advantage is driving rapid adoption, with the Middle East and Africa in-flight connectivity market projected to grow from $137.2 million in 2025 to $253.5 million by 2030 at a 13.06% annual growth rate6.