SpaceX CEO Elon Musk warned that American Airlines Group Inc. (NASDAQ:AAL) could risk losing customers if the in-flight internet service isn’t up to par.
Could Lose Customers, Says Elon Musk
Responding to a post by Starlink‘s VP of Engineering, Michael Nicolls, who touted Starlink as the only source of “good connectivity” on flights, Musk shared his thoughts on Sunday.
“American Airlines will lose a lot of customers if their connectivity solution fails,” Musk said.
Tesla Loyalists Echo Elon Musk’s Warnings
Musk’s comments were echoed by the Tesla Inc. (NASDAQ:TSLA) faithful like influencer Sawyer Merritt, who said that the airline could risk losing customers by favoring Amazon.com Inc.‘s (NASDAQ:AMZN) satellite internet service provider Leo over Starlink.
“SpaceX currently has over 9,000 Starlink satellites in orbit, and growing fast. Amazon Leo has 150,” Merritt said, questioning the airline’s decision to snub Starlink.
American Airlines’ Deal With Amazon
Musk’s comments come amid a potential deal between American Airlines and Amazon.com Inc.‘s (NASDAQ:AMZN) satellite internet service provider Leo, which was hinted at by American Airlines CEO Robert Isom, who said that there were other options besides Starlink in the market.
Meanwhile, Starlink has signed a deal with United Airlines Inc. (NASDAQ:UAL), with the rollout initially being available on its regional network. Following the deal, United also promised to expand the onboard WiFi services on more aircraft in its fleet, adding that the service is free for its MileagePlus members.
Starlink Mobile, SpaceX IPO?
SpaceX could also be eyeing a possible cell carrier future for Starlink, as recent trademark filings filed with the USPTO outlined the “STARLINK MOBILE” trademark, which would be used for “two-way real-time transmission of voice, audio, video and data by means of wireless telecommunications devices.
Elsewhere, Musk recently confirmed that SpaceX was gearing up for its IPO next year, targeting a valuation of $1.5 trillion. Interestingly, Musk had hinted that the company could go public last month during Tesla’s annual shareholder meeting.
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