SmartSky Networks has opted not to actively pursue traditional cabin connectivity deals with airlines, saying the business proposition in commercial aviation is weak as the free Wi-Fi model takes hold.
“We watch traffic utilization,” and SmartSky’s nextgen air-to-ground network in CONUS has been engineered to handle “a lot of simultaneous flyers and applications” including not only streaming but cloud access, VPN use and videoconferencing, said company CEO David Helfgott, “And that’s really where we shine” and why fractional ownership players and private aviation operators have been gravitating towards SmartSky’s service.
Commercial aviation, on the other hand, he said, “is largely forward link or streaming type of services. And, as we move closer and closer to free Internet on flights, it becomes a very tough place to make a profit. We don’t love the way that market looks, in terms of the business proposition.”
So, this decision is being driven by “what’s the best use for our network”, he told Runway Girl Network.
In a recent interview with Satellite Mobility World, where SmartSky first divulged its decision, Helfgott noted: “[D]ata use on commercial flights tends to be more asymmetrical, and on business flights, more symmetrical. Because satellite return link capability is limited, ATG is a better fit for business aircraft.” Low-latency ATG is particularly adept at supporting interactive activity including cloud-based financial applications.
Whilst SmartSky isn’t interested in competing in classic cabin connectivity deals with airlines, it still favors the idea of providing telemetry data, crew communications and flight optimization to commercial flights — “the part of the commercial flight that needs ultra-low-latency and high-bandwidth off the aircraft”, explained Helfgott. “So, it’s a niche play.”
The company also continues to focus on ensuring its business aviation customers have access to excellent customer service. “That high level of customer support” required in BizAv, “is sort of table stakes. You have to be able to provide that. It’s not correct that you can do this without that.”
He continued, “Honeywell is our VAR [value added reseller]. We work closely to integrate a very high level of service. Whether the initial install and equipment, or operation on our network, it requires a high level of customer support.”
Supplemental type certification (STC) work continues apace. “I think by the end of this roster, we’ll have 14,000 tails covered with STCs. We have our priority list but sometimes the market reprioritizes for you,” said Helfgott, noting that SmartSky will have “full market coverage” via STCs in BizAv by “mid/late next year at the latest” and will be “very close by the end of this year”.
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