Industry Insider Exposes Domestic Airline "Wi-Fi" Truth

Although many domestic airlines have already deployed air-to-air networks, it seems that "air-Wi-Fi" still lags behind. Most flights do not have Wi-Fi, and most of the rest are LANs and cannot be connected to the ground.

It is reported that even if the airline began to try airborne e-commerce, content advertising and other methods, the technical difficulties of the Internet and the high cost of aircraft modification have always dragged the "Wi-Fi air" hind legs.

According to an informed source from a third-party aviation operation, the cost of selling goods in the air is huge and involves many aspects, making it difficult to weigh the interests of all parties.

The revenue generated by air e-commerce, advertising revenues, and the use of air-Wi-Fi as a gimmick to attract passengers is able to hedge the costs of installing equipment and heavy-duty flights. How to apportion huge technical expenses has become a problem that domestic airlines need to be careful about.

Users are not satisfied

For those who travel frequently, it is not uncommon to send mail but they have to board the plane. After the plane enters the state of flying, it is thought that it can use the air WiFi to send emails. The local area network cannot connect to the outside world, or can only log in to the designated website when connecting to the outside world. The mailbox can only use the specified mailbox. What is more, it will be notified that WiFi cannot be used. According to a flight attendant from Shenzhen Airlines, the so-called Wi-Fi flights currently available on Shenzhen Airlines can only be used on the “intranet,” although it is possible to select AV entertainment on the “intranet” and even contact the passengers behind the cabin. However, if you want to contact the outside world, it is not possible to use the network as you would at home.

This situation is not accidental. There were passengers who took Air China's CA1322 flight from Guangzhou to Beijing in late October. During this period, the passenger saw the WiFi-enabled logo in the cabin, but the tablet computer did not find the Wi-Fi signal and asked the flight attendant. The flight attendant said "I can't connect, I don't have Wi-Fi." Tencent Technology has called the Air China Complaint Hotline at 010-59036666. The answer is that Air China does not have Wi-Fi service on all flights, even if it is stated at the time of booking that the passenger is informed that the WiFi service may not be available.

A number of domestic aviation flight attendants disclosed to Tencent Technology that there are very few Wi-Fis on the current flight. Some say that it is only a local area network within the cabin that cannot connect with the outside world.

Not only domestic, but also "air Wi-Fi" abroad has not found a way to break. FlightView survey once investigated 600 passengers in the United States, and only 28% of passengers were satisfied with the in-camera Wi-Fi service. According to a recent study conducted by the National Survey Center for Consumer Reports, few passengers actually use Wi-Fi in the air. According to a one-year survey of 3,000 passengers, only 23% wanted to link Wi-Fi on the machine, and only 16% actually connected. And 37% of those who connected indicated that there was sometimes an interruption or unstable network speed.

True Wi-Fi

From the second half of 2012, HNA began installing tablet computers in its cabin. Passengers can find tablets on the back of most HNA plane seats and access the Internet for free. Last month, Air China’s "Air Internet Industry Alliance" was formally established. ZTE, China Aircom, China UnionPay, Jingdong Mall, Sina, Youku Tudou and other Internet companies are listed in the list of core units. Eastern Airlines also signed a strategic cooperation agreement with China UnionPay on the newly-introduced Boeing 777-300ER passenger aircraft, and announced the world’s first “spaceless Internet cloud payment platform”.

However, passengers may not know that, every day, the “Xilehang” that operates Hainan Airlines’s online business will have more than two hundred people carrying the Pad on the passenger plane, charging, updating the data, and then moving it back to the plane. The so-called cool "over the air WiFi" also has "LAN" and "interconnected world" two situations. According to Pan Yunbin, CEO of Xilehang, who focuses on aviation internet technology development and platform operation, the first step of Hainan’s Internet project is to equip a tablet computer behind each aircraft seat; the second step is to establish a LAN within the cabin to realize the tablet computer. The interconnection in the cabin; the third step is to achieve world communications.

At present, most domestic airlines' "air Wi-Fi" is still a local area network, which is a small local area network within the cabin and cannot connect with the outside world. After all, the cost of connecting the world is too high. Looking at the financial reports of major airlines, the cost of aviation fuel has both increased and increased. Although the airlines are overall profitable, the major airlines’ transportation business is in fact a loss if it removes non-operating income, investment income, and exchange gains from the total profit. Installing air-to-air Wi-Fi is not as simple as adding a router. Prior to this, Shenzhen Airlines announced that the cost of modifying Wi-Fi for each aircraft was approximately 4.5 million RMB.

From a technical point of view, there are two main ways of connecting the world: one is adopted by Air China and communicates via the internal wireless network installed on the aircraft and satellites, and then communicates via the satellite and the main station on the ground. The ground master station and the domestic Network operators connect. The advantage of this approach is global coverage, but the biggest problem is that the slow speed can only achieve 'narrow-band' transmission; the other way is adopted by Hainan Airlines, using on-board equipment to establish network links with ground stations. The advantage lies in the speed, and the problem is that the base station must be remodeled and the service is limited to this section of the route through the base station reconstruction. Both of these methods are faced with high costs and difficult expansion issues.

In addition to retrofitting costs, the cost of data transmission is hard to ignore. The cost of transmitting 1 Mbytes to the aircraft by GoGo, the largest US airborne Wi-Fi provider, is approximately 20 cents. The cost of 1G data is approximately US$200.

Air marketing

From January to May this year, the total domestic and regional civil aviation passenger transport volume was 144 million, and international was 12 million, which was an increase of 11.1% and 16.5% year-on-year respectively. Faced with such a large number of high-end consumer groups, Internet companies naturally can not tolerate the absence of high altitude. And Wi-Fi in the air is their only entrance.

Song Chunzheng, general manager of JD.com's customer sales department, once told the media: “Passengers can log on to Jingdong’s “buy air” channel to browse products in the cabin network by using a laptop or tablet on the relevant flight. JD’s use of big data technology To analyze the product categories suitable for air shopping, mainly to provide high-end travel, gift products. "

However, according to informed sources from a third-party aviation operation, the cost of selling goods in the air is huge and involves many aspects, and it is difficult to weigh the interests of all parties. He said: "As far as I know, the minimum commission for sales of products by SkySky is 25%. Jingdong's profit rate is not enough for flight attendants. If the ground floor is moved into the air, it is difficult to maintain because you To face completely different costs, "A flight attendant from Air China told Tencent Technology that they can get a 5% commission for selling goods on the plane. Some other aviation flight attendants also have a commission system, and they receive commissions ranging from 5% to 35%. In addition, there are warehousing and transportation costs. The profits of e-commerce are completely inadequate in the air.

In addition to over-the-air e-commerce, aerial advertising is also an attempt by airlines to open up new profit points through "Wi-Fi over the air." The competition for ground advertising has become fierce. In contrast, advertising in the air is a virgin land of water and grass. The level of air passengers’ spending is the highest among all modes of transportation. The airlines connect the two places and the area is demarcated. The brand operator can plan marketing strategies more precisely; moreover, air passengers’ freedom is limited and their attention to the same advertisement is obvious. More than other places, operators can easily achieve exclusive marketing, monopolizing passengers' attention in flight time. The intention of Hainan Airlines to provide passengers with pad is also here. On the one hand, advertising can be embedded in the pad. On the other hand, the video and audio resources in the pad can not only be embedded in the content, but also can be packaged in the front and back patches and put on advertisements.

Air China said it has not yet considered charging for air Wi-Fi service.

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