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Medium Market Entry New Product Launch Breakeven

WiFi in the Sky

#Airline
ProHub Comment

This case tests the candidate's ability to evaluate business model tradeoffs and perform financial breakeven analysis under competitive market pressure. The key challenge is recognizing that vendor selection involves strategic tradeoffs between control and operational burden, and that market dynamics (low current take rates) may require creative solutions beyond simple cost-benefit analysis.

Estimated Time 15 minutes
Difficulty Medium
Source NYU
50 / 100
Your firm has won an RFP to help a domestic airline carrier examine their in-flight connectivity (IFC) strategy. With 80% of US-based aircraft already outfitted with IFC technology and competitive pressures rising, offering WiFi service is becoming table-stakes. Your client has yet to enter the game, but they know it’s something they need to consider to stay competitive. What are some of the key things the client should think about when assessing their go-to-market strategy for IFC?

Clarifying Information

  1. Th airline flies primarily domestic routes within the continental US, as well as select flights to Canada, Mexico, and the Caribbean
  2. IFC includes only WiFi connectivity. In-flight entertainment (IFE) is delivered via an on-board server through a separate system, but the two can be integrated into one user experience
  3. The airline’s main objective is to stay competitive
  4. RFP = request for proposal
  5. Airline has 90 planes and services ~30K flights per year