Introduction to Starlink Internet Service on United Airlines

United Airlines has obtained approval from the Federal Aviation Administration (FAA) to commence operating flights equipped with onboard Starlink satellite internet service. This service will initially be available on the airline’s fleet of Embraer 175 aircraft, with plans to install it on all 300 regional jets by the end of the year.

Features and Availability of Starlink Service

The Starlink service will be offered free of charge to UnitedPlus members, which includes essentially all passengers since the loyalty program is free to join. United Airlines and Starlink had previously announced plans to outfit the airline’s entire fleet of over 1,000 aircraft with the Starlink service in the coming years.

Expansion of Starlink Service

SpaceX, the company behind Starlink, has been signing numerous deals to offer the service beyond rural households. Partnerships include T-Mobile, Royal Caribbean cruise ships, Hawaiian Airlines, and private jet operator JSX. However, the service is not expected to perform well in densely populated areas where high-speed fiber internet is already available, as a single Starlink satellite may not have sufficient bandwidth to serve multiple users simultaneously.

Revenue Projections for Starlink

Starlink is projected to reach over $11 billion in revenue in 2025, driven by government and commercial contracts. This revenue helps subsidize the cost of SpaceX rocket launches, as new Starlink satellites can be sent up with each payload.

Demand for Starlink Service from Airlines

Airlines are eager to offer the Starlink service due to the limitations of existing in-flight WiFi offerings, which are often slow and unreliable. Starlink can provide broadband-like speeds thanks to its constellation of satellites in low-earth orbit (LEO), although latency is higher due to the nature of sending requests to space and back.

Business Model and Potential Drawbacks

It is notable that airlines are willing to absorb the cost of providing Starlink service, given the industry’s trend of "unbundling" tickets and charging extra for perks. However, it would not be surprising to see airlines eventually throttle the service and charge extra for faster speeds.

Geopolitical Concerns Surrounding Starlink

As Starlink is associated with Elon Musk, it comes with some geopolitical baggage. While the service has provided crucial internet access in locations like Ukraine, some countries in Asia and Europe have expressed reservations about relying on an internet service controlled by a close associate of President Trump.

Alternatives and Controversies

Europe is developing its own Eutelsat alternative, while Taiwan has been exploring other options due to concerns over Musk’s ties to China for Tesla sales. In Canada, the province of Ontario recently canceled a $100 million Starlink contract in retaliation over U.S. tariffs. Musk may secure lucrative government contracts domestically, but his influence is a double-edged sword, exposing his empire to geopolitical conflict due to his close relationship with President Trump.