Elon Musk, on Wednesday, said that SpaceX signed deals offering lower revenues with airlines for the Starlink service to increase its accessibility, as Delta Air Lines Inc. (NYSE:DAL) chooses Amazon.com Inc.‘s (NASDAQ:AMZN) Leo over Starlink.
Deliberately Signed Deals
Musk said that the commercial space flight giant “deliberately accepted lower revenue deals with airlines” to make Starlink “super easy to use and available to all passengers,” in a response to user Phil Trubey on X, who hailed the SpaceX CEO’s decision not to enter a deal with Delta Airlines after it wanted to offer Starlink via its own portal.
Delta Chooses Amazon Leo
Delta entered an agreement with Amazon’s Leo, snubbing Starlink. The operator said that its decision weighed on its prior partnership with Amazon Web Services (AWS), which handles its operations. Delta will begin the rollout in 2028, it said.
However, it’s worth noting that Starlink’s airline model emphasizes a direct, portal-free connection, as well as free onboard access and visible Starlink branding.
Starlink has agreements in place with multiple airlines, including United Airlines Holdings Inc. (NASDAQ:UAL) and Richard Branson‘s Virgin Atlantic. SpaceX has held talks with American Airlines Group Inc. (NASDAQ:AAL) as the company was reportedly eyeing a possible deal with SpaceX to offer Starlink on its flights.
Pension Leaders Criticize SpaceX Power Structure
Meanwhile, as SpaceX is gearing up for its IPO, Top pension officials from New York and California have expressed concerns with Musk’s voting powers, as well as the de facto power over the company’s key decisions, including the removal and/or appointment of the CEO.
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