Australia’s airline war shifts to Wi-Fi battle

Australian air carriers used to compete on routes, ticket prices and miles earned. However, as the airlines embrace higher technology, the competition is shifting into a Wi-Fi battle.

On Thursday, Virgin Australia CEO John Borghetti announced that the air carrier’s domestic and international flights would have Wi-Fi by middle of 2017. However, he did not provide details if it is a freebie or an added service with extra cost to the passenger since details are still being finalised, reports News.com.au.

Flag carrier Qantas is set to also roll out its Wi-Fi in 2017, but the Flying Roo has announced it would be a free service. The company would use the same satellites utilised by NBN to provide the internet connectivity to air travelers.

However, in comparison to US air carriers, Qantas and Virgin Australia are seven years late since Delta and Virginia America introduced Wi-fi in-flight as early as 2009.

Borghetti says the Wi-Fi would be a seamless service from the airport to airplane. The Wi-Fi announcement was accompanied by Borghetti sharing the company’s report in which half-year underlying profit reached $81 million but turned into an $18.6 million loss in Q3 due to slower demand its domestic and international flights.

He forecast a full-year profit of $30 million to $60 million for financial year 2016, suggesting loss for the current quarter.

VIDEO: Qantas to introduce free Wifi on all domestic flights by 2017