Inmarsat and British Airways to launch European in-flight internet

5th Jun 2014 07:28

- Inmarsat to launch satellite dedicated to in-flight internet- British Airways poised to be first customer - Cut-price satellite launch agreed for end-2016Satellite operator Inmarsat has announced plans to provide the first Europe-wide in-flight broadband internet service, with the launch of a new dedicated satellite in late 2016 and completion of an air-to-ground network.The FTSE 250 company is in advanced discussions with British Airways (BA) to be the first customer, initially covering UK domestic routes, with a service launch likely in 2017.Following the success of air-to-ground networks in the US, Inmarsat has decided to launch the EU's first service and has come to an arrangement to halve initial programme costs by sharing a launch rocket with a non-rival European satellite operator. Chief Executive Rupert Pearce said: "North America has seen rapid take-up of in-flight passenger connectivity services, with installation and usage both growing very quickly."He pointed to independent research that had predicted in-flight connectivity services will be a multi-billion dollar revenue sector by 2020. As a result of the sharing agreement, Inmarsat's said it expected costs for the manufacture, launch, insurance and operations of its S-band satellite, called Europasat, to be around $200m over a three-year period, half what it should cost to deploy an S-band satellite on a stand-alone basis. The cost of developing its existing ground network and service deployment is estimated at $200m to $250m over the next six years.Pearce added: "We believe that the same in-flight connectivity opportunity exists in Europe and that, with the support of EU telecoms regulators, Inmarsat can rapidly bring to market unique, high speed aviation passenger connectivity services to meet this market demand on an EU-wide basis. A number of European airlines are aligned with this vision and we are absolutely delighted to announce advanced discussions with British Airways to be a launch customer on our new aviation network." Inmarsat has already begun the licencing process with EU member states and said it had received "strong support" for its applications from many EU telecoms regulators.BA, part of International Consolidated Airlines Group, already works with Inmarsat via an existing in-flight wifi provided on its flights from London City airport to New York using the OnAir service and Inmarsat's SwiftBroadband satellite services.OH