SpaceX’s Starlink nabs American Airlines contract, another win for its IPO

Source: TechCrunch

Image Credit: Kevin Carter / Getty Images

American Airlines to Install Starlink

American Airlines announced Tuesday that it plans to install Starlink on more than 500 narrow‑body Airbus aircraft beginning early next year, becoming the latest carrier to choose SpaceX’s unit for inflight Wi‑Fi service.

The deal provides more than just financial lift for Starlink—the satellite communications network and the only SpaceX business unit that generates meaningful revenue. It also gives SpaceX a win over competitors such as Amazon Leo and legacy providers like Viasat.

Starlink satellites operate in low Earth orbit to deliver broadband internet to consumers and enterprise customers, including airlines. The company has pursued contracts with airlines and cruise operators with some success. United Airlines, Southwest Airlines, Qatar Airways, Lufthansa Group, British Airways, and Alaska Airlines (which merged with Hawaiian Airlines) have equipped some aircraft with Starlink, according to SpaceX’s IPO registration filing released last week.

American Airlines’ new Airbus A321XLR and A320neo aircraft will receive the Starlink upgrade; its Boeing fleet is not part of this agreement.

The contract adds another tailwind for SpaceX ahead of its highly anticipated IPO next month, which is projected to be the largest in history.