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Travel + Loyalty
SAS's Starlink Strategy: Loyalty Program Game Changer?
Welcome to a deep dive into SAS's onboard connectivity, especially with the 'First Starlink Flight'! We explore the airline's history with internet connection and how they ensure passengers stay connected. This video highlights SAS's ongoing commitment to aviation tech and improving wifi on planes.
We talk with Aron Backström, Vice President Product & Loyalty at SAS - Scandinavian Airlines.
In the talk, which happens at 37.000 feet and close to the Artic Circle, we discuss what Starlink do for SAS and its customers. The following topics are discussed:
Why was it important for SAS to launch Starlink on the first A320neo-family aircraft, and why now?
What role does high-quality onboard connectivity play in SAS’s overall customer experience and loyalty strategy?
What were the key reasons SAS selected Starlink over other connectivity solutions?
From a frequent flyer perspective, what are the most tangible improvements passengers will notice compared to previous Wi-Fi?
How does reliable connectivity change the short- and medium-haul travel experience, where time onboard is limited?
How does Starlink strengthen the EuroBonus value proposition for loyal SAS customers?
Do you see onboard connectivity evolving into a core EuroBonus benefit, rather than an optional service?
Does improved connectivity enable new forms of personalization, engagement, or recognition for EuroBonus members?
What can EuroBonus members expect in terms of fleet rollout and availability of Starlink going forward?
If you were to summarize what Starlink represents for EuroBonus members and SAS customers in one sentence, what would it be?
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Welcome Aaron, 30,000 feet, live almost, uh, from the first uh Starlink Airbus A329. Um, can you share the history of uh SAS and its onboard connectivity? Because this is not the first time you're doing some some important milestones here. Uh I can remember back in Connection by Boeing that you're also a first mover there. But what is the history about uh connectivity when it comes to SAS?
SPEAKER_00:No, uh first of first and foremost, welcome Henrik. Hey, great to have you here with us. It's it's really an historical day. It's it's a milestone for SAS where to finally lie with Starlink and getting this tech up in the air. Uh so shortly on the history, I think I think it's fair to say that SAS have been pioneers in onboard connectivity. So um, connection by Boeing, as you say, in 2005 on the 330s and 340s. We then did Panasonic in 2010 on the 330s, Viasat on on the 320 fleets from 2018 and forwards, and then Inmersat on the 350s from say 2020 as they came into service. So, fair to say we've been on the forefront, we tried almost everything out there, but I think this time it's different. So, so for the first time ever, we're gonna be able to offer a connectivity that's just as good as the connectivity you get at home. We're gonna be able to offer it consistently, so you're gonna have it on all SES aircraft, and finally, we're not gonna charge for it anymore. I think that business model where you charge people 50 Danish for for uh for connecting to the internet, it it's gone. Uh, this is gonna be free for members.
SPEAKER_01:And again, yeah, forefront, yes. Uh, and that leads me to the next question. A320 family. Um, it's the first uh in Europe that you certify. Again, you are on the forefront there. Why was it important for SAS to start with the A320s as the first uh airplane with uh Starlink?
SPEAKER_00:Now it to me it makes sense. It's it's the workhorse of our fleet. It's where we have the most aircraft, and almost half of them are and unequipped today. So it's a high risk that you run into an A320 without Wi-Fi today, and we want to address that.
SPEAKER_01:And I think uh a lot of customers would appreciate that. Uh I know, at least from the forums and talks that I have that they are always a little bit disappointed when they come on board an airplane without incident. So uh so that's that's a really a good one on the working horse. So the high quality onboard connectivity, what role does it have in in the overall uh customer experience and the loyalty strategy from SAS?
SPEAKER_00:I think it's super important already now, and it's gonna grow even more important as we go along, right? So our customers expect uninterrupted connectivity with a quality as they have at home, in office, also when they fly. So I think we're we're closing that gap in our customer offering, and we're doing it faster than most of our competitors, which is gonna be very good for us.
SPEAKER_01:And Starlink, what was the key reason that you selected Starlink as your preferred uh partner for connectivity?
SPEAKER_00:No, so we did a very thorough RFP process and looked at all the satellite networks and providers out there, but there is really no one who's read the here and now. I think if you were to wait three, four, five years, more alternatives are gonna pop up. But here and now, and we think we need to act here and now because because the customers expect it here and now. Starlink is the only option.
SPEAKER_01:So I think we have talked before uh the talk a little bit earlier about blue ocean here. I think can you mention a little bit about this blue ocean for SAS for the next coming years? What does that mean?
SPEAKER_00:No, so I think it means right the the European customer does not uh is not fully aware of this because we're gonna be number two or three in Europe with this product, depending on how you count. So so most of our passengers haven't experienced Solink yet. But once you've done that, uh or once you've read that's on blogs, on news forum, etc., on on what this product means, you're not gonna go back to booking something else. So I think we have a real wind of opportunity here where we can offer full connectivity, work as as you were in the office, and keep your kids entertained as if you were at home while you're on a flight to LA. In 2027, there's no reason not a reason to fly with an airline who can't offer that.
SPEAKER_01:You say 2027. Um I'm pushing here a little bit. I know you don't have the full plans ready yet, but but can I expect to take my family to LA uh and be guaranteed in 2027, in 2027, sometimes that it will have Starlink on board?
SPEAKER_00:So plan not fully set, so I'm not gonna guarantee, but I would be very disappointed if you did not get Starlink on your LA flight in 2027. So uh we're gonna keep installing at a very rapid pace now during spring. So as we come to to the summer, we're gonna have roughly 50% of our fleet equipped with Starlink. And as we close 2026, we're not gonna be at 100%, but hopefully 90 at least.
SPEAKER_01:But you're competing with uh some very big players. Lufthansa announced it yesterday, they are talking 29. Uh we have Emirates as well as a big player, they're also talking a lot, they have a lot of planes. So, isn't that a part of this blue ocean that you still can operate in before they are ready to have offer that on their entire fleet? No, indeed.
SPEAKER_00:Speed matters. Uh but we have an advantage. It's nice to be a bit smaller. I think we can make decisions faster than these guys and and get to action faster. Great.
SPEAKER_01:And and now moving to uh the customer, the frequent flyer. What are the most tangible improvements that they will notice compared to what they have uh tried earlier on with SAS and connectivity?
SPEAKER_00:No, so so I think it's three things. It's uh it's gonna be consistent, you're gonna have it on every SAS flight, no more hoping or guessing if I get this machine or that machine. It's gonna be reliable, it's gonna work also when you fly over the North Pole or over Northern Norway or or tricky, tricky locations. Uh, and it's gonna be free. You you don't have to pay to connect. This is uh something you can expect.
SPEAKER_01:Free internet for the family uh on on areas where that typically is uh coverage gaps, that uh that uh is attracting quite a lot. So so the connectivity, you're talking about it's free, that it's this, but how reliable is it actually? Do you can you do gate to gate without interruptions uh in that sense? You can.
SPEAKER_00:Uh there are a few locations where where local laws don't allow gate to gate, but for the vast majority of the time it's gonna be gate-to-gate. And uh we're looking at some KPIs for this uh test flight right now, and it's looking great. Less than 1% package loss, really good uh speeds.
SPEAKER_01:And I would also assume on this flight right now it's it's over the average users uh of uh of connectivity that we're looking at here. We have uh uh two players up front playing uh Counter-Strike live with the people on the ground, uh, and we have a lot of media and influences as well. So so so that is you're saying this is not challenging the installation as of now. Everything works?
SPEAKER_00:It seems like it, right? Uh but this is what we wanted to test to make sure that this product holds up also in real life, not just on paper.
SPEAKER_01:And then a little bit back to your key or core area, Eurobonus. So Starlink strengthen Eurobonus, that's clear. Uh free internet, uh, stable, all the fleet. But how can SAS benefit from that uh on um on the cabin and the crew and the the real-time possibilities?
SPEAKER_00:No, so I think we are scratching on the on the opportunities right now. So so we're still building the plan, but there's a lot we can do. So the cockpit is gonna be fully connected. You have uh information on on weather and and traffic, etc. etc. Uh, our cabin crew can have all the details about their passengers on um at their fingertips, including connections and bags, and how you what you experienced on your last flights, etc. etc. Um and and for for passengers, I mean we're gonna find new ways to to keep you entertained and engaged and and uh talk to SES in new ways with this connectivity.
SPEAKER_01:So, in principle, I know we're not allowed to talk and speak uh here, but in principle, you could as a as a Euro Bonus member connect to uh to uh customer service while on the flight, being rebooked and changed uh your itinerary before you land.
SPEAKER_00:You can definitely chat with customer service. We're not gonna allow voice calls, but but uh chatting and emailing with them, no problem.
SPEAKER_01:And then that happens uh much faster than standing in line at the airport in in transit. So you can save a lot of uh scenarios in that sense, right? So the onboard connectivity, is is that a your bonus benefit or core benefit, or is it a service that you offer?
SPEAKER_00:No, but I would say it's a core benefit. So uh it becomes this entry-level benefit for the program and a reason to join Eurobonus, even if you're not a very frequent flyer or a point collector, etc. etc. So so really hoping to drive up our membership figures with this.
SPEAKER_01:And a little bit about the the customers. I assume you have talked to several uh customers in all this preparation and all this. What is the feedback from them in terms of uh rollout, availability, uh, and and basically just connectivity? What is the the things you've heard?
SPEAKER_00:No, but uh I think I think the customers are very anticipating and and positive around this. Uh you do hear a story every now and then that people like to be offline for a few hours with the boss not chasing you and reading a book, right? But so your time to do that is now during spring and before you fully rolled out.
SPEAKER_01:Everything goes digital. Also, uh also the books and uh and your let's say your downtime, so to speak. Yeah. So if you were to summarize what the styling represents for your bonus and and SAS in in general, in in one sentence, what would that be?
SPEAKER_00:That's a tricky one, Henrik. No, but but it is a game changer for SES and for Unibonus, and it's gonna allow our passengers to stay connected with the rest of the world during their travels.
SPEAKER_01:And then the of course uh a roundup question here. We're sitting on the first one. S E R M is the is the equipment number. Uh when does this go live? And when is the next one going into the hangout to get Starling installed?
SPEAKER_00:So installations at scale will hopefully start already next week. Uh and we're looking to push the on button as soon as we have a decent number of aircraft equipped, maybe 10 or so. And with the current planning, that's gonna happen first half of February. But I'm not committing to a date just now, but but but it's very soon, right?
SPEAKER_01:I I think uh from us sitting here testing it right now, and you're then saying February as uh the time where you enable the first uh flight, then uh then uh would what it's it's just next to a question that I haven't prepared, but I was thinking, would you mark uh here in the beginning, would you mark your your flights or bookings with uh a Starlink brand or something like that?
SPEAKER_00:No, but we we we need to set the expectations a bit, right? So we we need to make it very clear to the passengers before they board if they can expect the Starlink experience, the old Wi-Fi experience, or sadly uh read a book. Uh so we're gonna be working with app pushers and CRM to make sure that you know what you're getting into before boarding.
SPEAKER_01:Great stuff. I'm one of them who will go for the book uh from from time to time and not being online all the time, but I can I can feel that uh that time is over in a year or two from now. It's uh it's uh it's not possible anymore. Aaron, thank you very much for for having us and uh we enjoy this one, the experience, and uh looking forward to what happens in February. Thanks a lot, Patrick.