American Airlines in talks with Starlink and Amazon for Wi-Fi upgrade, weighs return of seatback screens

American Airlines in talks with Starlink and Amazon for Wi-Fi upgrade, weighs return of seatback screens


An seatback on an American Airlines Boeing 737.

Leslie Josephs/CNBC

Bringing screens back to American Airlines‘ narrow-body planes is under “serious consideration” and a decision could be made as early as next month, according to a person familiar with the matter.

It would be part of a major revamp of American’s in-flight entertainment and Wi-Fi for narrow-body aircraft, said the person, who asked not to be named because they were not authorized to talk about the plans publicly.

Part of those plans include discussions with SpaceX’s Starlink and Amazon Leo to potentially provide in-flight Wi-Fi, according to the person.

American is also talking with Amazon about providing content for the seats, which could include Amazon Prime, music and potentially shopping, where customers could use miles for purchases, the person said.

The airline currently has a deal with Apple for customers to stream music and Apple TV+ content.

Amazon Leo declined to comment. SpaceX didn’t immediately respond to a request for comment.

Pressure is mounting on American from rivals such as Delta Air Lines and United Airlines, which account for most of the U.S. airline industry’s profits, and airlines have been increasingly relying on customers willing to pay up for premium seating.

Why good Wi-Fi is so hard to get on airplanes

Those two carriers have invested for years in improving customer products with technology such as new in-flight entertainment and other perks.

Meanwhile, American decided to remove seat-back screens from its mainline narrow-body aircraft almost a decade ago to save money on the equipment cost and weight they add to the aircraft. Executives at the time said customers would likely use their own mobile phones, tablets or laptops to stream entertainment.

In recent years, however, rivals have been investing heavily in new cabins and more modern entertainment. American itself is adding more premium seats to both its narrow-body and wide-body planes, which already have screens on them.

In an interview last fall, American’s chief customer officer, Heather Garboden, told CNBC that the airline was warming to the idea of bringing screens back.

“I think of where the technology was a decade ago, and where it can be today, or even a few years from today,” Garboden said at the time. “Hopefully the complexity is less.”

Adding seatback screens to American’s planes would take years and be a costly undertaking. American has more than 790 narrow-body Boeing and Airbus jets, according to the company’s annual filing. It has more than 280 of these jets on order, and seatback screens could debut with deliveries straight from the factory.

Elon Musk’s SpaceX has made inroads among airlines to provide in-flight Wi-Fi, gaining customers including United, Hawaiian Airlines and Qatar Airways.

United, Delta, Southwest Airlines and American in recent years have followed JetBlue Airways‘ move to offer Wi-Fi for free. Generally, customers must be members of the airline’s loyalty program to receive the complimentary Wi-Fi.

Read more about airlines’ race to win over big spenders

Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.



Source

Can events drive a comeback? Hong Kong Tourism Secretary on Sevens, visitors and the Iran war
Travel

Can events drive a comeback? Hong Kong Tourism Secretary on Sevens, visitors and the Iran war

ShareShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email Rosanna Law, Secretary for Culture, Sports and Tourism of Hong Kong, addresses the effects of the Iran war on the city’s tourism sector, specifically how soaring fuel prices and flight cancellations are affecting visitor inflows. She also emphasizes economic benefits of Hong […]

Read More
Jefferies’ Kahyaoglu: Airlines are losing 15% with jet fuel prices where they are today
Travel

Jefferies’ Kahyaoglu: Airlines are losing 15% with jet fuel prices where they are today

ShareShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email Power Lunch Sheila Kahyaoglu, Jefferies aerospace and defense analyst, joins ‘Power Lunch’ to discuss the impact of rising jet fuel prices on airlines. 04:11 28 minutes ago Source

Read More
Santelli: How to trade options around United Airlines
Travel

Santelli: How to trade options around United Airlines

CNBC’s Rick Santelli reports on a potential options trade. Source

Read More