Mubasher: In-flight broadband may create a $5.2 billion market in the Middle East region by 2035, according to a study conducted by the London School of Economics and Political Science (LSE) in collaboration with Inmarsat, a UK-based provider of global mobile satellite communications services.
Middle Eastern carriers’ ancillary revenues are expected to grow $1.3 billion, the report found.
Global airlines will benefit from four new revenue streams, such as Broadband access charges, E-commerce and destination shopping, Advertising, and Premium content, the LSE’s data showed.
Passengers will rise their expectations regarding the quality of in-flight connectivity, while airlines will gain extra $3.21 per passenger on the back of the Wi-Fi enabled ancillary revenue sources,” the report revealed.
“The airline industry is rapidly evolving across the world, including the Middle East. This research shows that airlines have a clear strategic opportunity to become distinctly more retail-focused and reap the benefits of this,” said Alexander Grous, PhD at LSE’s Department of Media and Communications.
“The latest advancements in satellite technology have unlocked exciting new opportunities for airlines to enhance their passenger experience, increase their operational efficiencies and grow important new revenue streams,” Ben Griffin, vice president for the Middle East, Africa, and South Asia at Inmarsat Aviation, commented.
