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In-flight connectivity: the costs borne by the airline

  • 28-06-2013 2:36am
    #1
    Registered Users, Registered Users 2 Posts: 2


    For my Master thesis, I conduct a cost-benefit analysis of in-flight connectivity (onboard internet and mobile phone usage) from the perspective of an airline. For the financial analysis I require more detailed assumptions and maybe someone can share their experience/knowledge regarding any of the below points:

    - Equipment Costs: I assume that final IFC equipment prices and the corresponding revenue share between airline and connectivity provider are subject to individual negotiations and agreements. However, are there any official list prices for IFC equipment/complete IFC solutions? I'm only familiar with the rough figures per aircraft of 100,000 USD for air-to-ground equipment and 200,000-300,000 USD for satellite connectivity solutions (Ku-Band).

    - Installation Costs: What are the required days and staff for the installation of different types of IFC equipment? I would assume overnight installations for air-to-ground equipment, but how many days and man-hours are required for more sophisticated installations like Row 44? What is a feasible assumption for the hourly costs of the corresponding airline maintenance staff?

    - Fuel Burn: What is the effect of different IFC antennas/radomes on aircraft fuel consumption (weight/drag)? I mostly heard of figures in the range of +0.5% for Ku-Band radomes on short-haul aircraft, but would assume the effect is smaller on long-haul aircraft.

    - Revenue Share: What are the most common revenue share agreements between airlines and connectivity providers? Roughly speaking, to which degree is revenue sharing influenced by how much the airline initially pays for the equipment (e.g. up-front payment of 30% of actual equipment costs relates to a share of only 30% revenues for the airline)? Are the installation costs (vs. equipment costs) usually completely borne by the airline?

    Thanks for your insights or links to other sources.


Comments

  • Registered Users, Registered Users 2 Posts: 7,561 ✭✭✭andy_g


    Only seeing this now, I closed your last thread for the same thing.

    Warning issued as you ignored my last instruction on your old thread.

    Im afraid to say boards.ie Ltd does not allow surveys to be conducted for college work.

    Please read the terms ans conditions you signed up to.
    Locked.

    You have failed to take this on board. Another post of this type you will have a thesis on spamming of a forum and a free result of what happens to them.

    Locked again.


This discussion has been closed.
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