NICHOLAS AIR has paused the planned installation of Starlink across its fleet.
SpaceX’s recent doubling of the costs for Starlink “lacks any reasonable ethical process” and could be considered “reckless”, according to NJ Correnti, founder and CEO, NICHOLAS AIR.
In an email to customers last week, Starlink advised its unlimited aviation plan would rise from $10,000 per month to $20,000 with the equipment price increasing from $145,000 to $200,000.
It also plans to add regional boundaries to service plans that limit coverage to a chosen continent, all effective from August 7th.
“I am shocked, for lack of better words,” Correnti, who was in the process of installing Starlink across NICHOLAS AIR’s entire fleet, tells CJI.
“How can any service or product provider advise its customer base that it is doubling prices with little to no advance notice?
“In most industries, that approach would be viewed as commercially reckless. It feels very much like the old ‘bait and switch’ tactic.”
Aircraft broker Denise Wilson says the rise made for an awkward moment with a client.
“On the day of closing on a Challenger 350 that I was acquiring for my client specifically because it had Starlink installed (a client request), I had to explain that the monthly cost I had quoted as $10,000 was now going to be $20,000. Literally no warning which made for an uncomfortable situation for all involved,” she commented on the CJI LinkedIn page.
However, aircraft operator Alice Trope, owner of FliteWatch, wrote: “I don’t understand the surprise, any system that locks you in with its equipment does this.’
NICHOLAS AIR, based in Oxford, Mississippi, had begun installing Starlink to its fleet of Phenom 100, Phenom 300E, Citation CJ3+, Citation Latitude, Challenger 350 and Gulfstream G600.
But Correnti has put that process on hold to review the connectivity landscape in light of Starlink’s announcement.
“We selected Starlink primarily because we wanted to support American-made products,” he adds. “However, given this sudden and significant pricing change, we have paused to evaluate the long-term implications and ensure we are making the best decision to protect our operation and serve the best interests of our Members.
“We remain excited about the future of inflight connectivity and recognize the value of the product Starlink has to offer; however, every major investment must be supported by predictable economics, transparent pricing, and long-term value.”
Founded in 1997, the luxury private aviation company offers a membership model, fractional ownership and aircraft management.