Elon Musk’s satellite internet venture Starlink is reportedly close to securing an agreement with Saudia Airlines to equip its fleet of more than 140 aircraft with high-speed satellite connectivity, marking a significant step in its Gulf region expansion. Bloomberg reports the deal would give Starlink a major foothold in the growing in-flight Wi-Fi market.
If finalized, the agreement would position Starlink as a direct competitor to Neo Space Group — a satellite connectivity initiative backed by Saudi Arabia’s sovereign wealth fund — which is developing its own in-flight service. It would also intensify competition with established players like Viasat and Inmarsat, both of which have been targeting the aviation segment.
The talks with Saudia Airlines come alongside Starlink’s other advanced negotiations with carriers including Emirates and Gulf Air, and build on its existing deal with Qatar Airways to provide Wi-Fi on select aircraft.
SpaceX established a dedicated in-flight connectivity division within Starlink in 2022, initially pricing the service between $12,500 and $25,000 per month, with a one-time hardware cost of $150,000. According to Bloomberg, the current hardware fee has increased substantially to between $300,000 and $500,000, in addition to a per-seat monthly service charge.
If the Saudia deal proceeds, it would mark a significant competitive shift in the regional aviation connectivity market, giving Starlink a prominent presence among Gulf carriers and challenging traditional satellite service providers in the high-demand segment.
