For my Master thesis, I conduct a cost-benefit analysis of
in-flight connectivity (onboard internet and mobile phone usage) from the
perspective of a hypothetical airline. For the financial analysis I still lack
certain assumptions and maybe someone can share their experience/knowledge regarding
any of these 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
- 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 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.