In-flight WiFi services to give airlines alternate revenue opportunity: Experts

Major airlines, including Air India and Vistara, on Tuesday welcomed the Telecom Commission's nod for use of WiFi and voice services inflight, with Civil Aviation Minister Suresh Prabhu saying he will ensure “earliest implementation” of the proposal.

When the decision comes into effect roughly in three to four months’ time, passengers can use mobile phones for both voice and data services in the Indian airspace in domestic and International flights. “We welcome the decision as it will mean more convenience to air travellers. We will study the recommendations in details and in due course determine the economics of offering on domestic and international route,” Vistara said.

Prabhu said that he will ensure "earliest implementation" of the proposal as the government remains committed to improving services of air passengers and making their travel delightful and hassle-free.

According to Amber Dubey, partner and India head of aerospace and defence at global consultancy KPMG, passengers may not be averse to paying Rs 200-300 for a 23 hour flight and it could be more for international flights.

“Premium and corporate passengers may get the service free,” he said. Dubey said in 12-24 hours, the WiFi service may become completely free like it is in hotels. For the airlines, it may provide alternate revenue opportunity through advertisements and fee from online transactions. “Overall, it's a great move albeit a bit late,” he said.

The Telecom Commission's approval is a win-win situation both for the airline and the travellers in general and we welcome it, said an Air India spokesperson, stating that they are analysing the announcement made in detail before commenting further on the issue.