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Seeking Change in a Tight Spot: American Airlines Rolls Out Free Wi-Fi in an Effort to Reverse Its Revenue Decline
American Airlines Group (AAL.O) will begin offering free high-speed Wi-Fi to members of its frequent flyer program starting this month. The move is intended to close the gap with its U.S. peers, as competitors have already established a lead in the premium service sector. The Fort Worth, Texas-based airline plans to roll out the service on all its single-aisle aircraft, such as the Boeing 737 and Airbus A320, as well as on regional jets with a two-class cabin layout. Through a partnership with AT&T, nearly all flights will offer free Wi-Fi by early spring. The service will be delivered via satellite connectivity provided by Viasat, with some aircraft supported by technology from Intelsat, a subsidiary of Luxembourg-based SES. After lagging behind United Airlines and Delta Air Lines in revenue performance, American Airlines is committed to a comprehensive business overhaul and enhancing its competitiveness. As market demand has shifted toward high-spending customers, these two competitors invested earlier in in-flight connectivity, loyalty benefits, and premium cabins.
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