Original airline business operations to see impact

The potential popularization of in-flight Wi-Fi services is expected to have a major impact on airlines' original in-flight business operations. For instance, the market for traditional in-flight entertainment systems is expected to shrink, and related service providers and operators might be affected.

Currently, the in-flight entertainment system market is mainly dominated by three manufacturers: California-based Panasonic Avionics Corp, Iowa-based Rockwell Collins Inc and French multinational Thales Group.

The in-flight entertainment equipment makes up a fairly expensive portion of the spending by airlines. The cost of a small screen averages at least $10,000, and airlines have chosen not to install the screens on many of their narrow-body jets.