1ChapterOne:QuantifyingthecommercialopportunitiesofpassengerconnectivityfortheglobalairlineindustryInassociationwithDrAlexanderGrousDepartmentofMediaandCommunicationsLondonSchoolofEconomicsandPoliticalScienceSKYHIGHECONOMICSSKYHIGHECONOMICS12ContentsForeword,byFrederikvanEssen2Executivesummary3BroadbandintheSkybyRobinMansell5DrAlexanderGrousBiography7SkyHighEconomics:ChapterOne8Overview9Marketdrivers10Researchapproach14Airlinepassengergrowth17Ancillaryrevenueforecastsummary17Averagerevenuecontribution23Broadband-enabledancillaryrevenue26Regionalsegmentation27Fullservicecarriersandlowcostcarriers30Regionalbroadband-enabledrevenuecategories36Advertising37Advertising:Pageimpressionsandpayperclick37Advertising:Ad-supportingfreebroadbandconnectivity40Broadbandaccessrevenue43Premiumcontent46E-commerceanddestinationshopping49Conclusion52Bibliography53References54Disclaimer56FrederikvanEssenForewordWelcometothefirstinstalmentofthe‘SkyHighEconomics’study.Thisstudy,conductedbytheLondonSchoolofEconomicsandPoliticalScience,isthefirstofitskindtocomprehensivelymodelthesocio-economicimpactoftheconnectivityrevolutionontheaviationindustry.ThiswillincludealaterreportlookingatthepotentialbenefitsthatconnectivitywillbringtoOperations&SafetyandtheimpactofpassengerconnectivityonLoyalty&Behaviourwithintheaviationindustry.ThisfirstreportlooksattheRevenueandEconomicsofinflightpassengerconnectivity.Thefindingspointtoafutureinwhichairlineswillrequireahighquality,globalsolutiontocapitaliseonthepotentialrevenueopportunitiesthatexistwithinthemarket;theseismicshifttoan‘alwaysconnected’culturemeanspassengerWi-Fiisnowanecessityratherthanaluxury.Withthisconnectednetworkofpassengerscomesasizeablerevenueopportunitywiththepowertoentirelyre-shapetheaviationindustry.IamproudtosaythatInmarsatAviationisuniquelypositionedasapartnertohelpmeetthegrowingdemandsforhighqualityaviationconnectivity,withitswhollyownedandoperatedglobalsatellitenetworks.Theskiesrepresentthefinalfrontierintheracetoconnecttravel...
