Call it a match made in heavens, a power deal forged in the skies. Delta has chosen Leo, Amazon's Low Earth Orbit satellite network, to power a new era of inflight entertainment for passengers. Both Amazon and Delta are getting a boost on the news. So Leo is Amazon's answer to Elon Musk's Starlink, reaching from the cloud to the stars. To hail news, Amazon inviting The Claman Countdown in a first-ever network exclusive to look inside the secret production facility in Kirkland, Washington. Amazon's satellite constellation is manufactured. I spoke with Jassy and Bastian in the lab.
We're super excited about the partnership that we're announcing with Delta. We're providing our satellite internet service, Amazon Leo, to Delta for their flyers. It will allow them to have better Wi-Fi than today. Starting with 500 planes in 2028, expanding from there. I think if you think about the experience of flying, Ed knows this, what your Wi-Fi experience is like is a huge part of that experience. Today, the experience that people have with Wi-Fi is so much better than when we grew up, 30 or 40 years ago. Still not as good as it will be in the future. If you think about the performance that we'll be able to enable with Leo, because we have our frequency KA band and we use smaller, more powerful antennas, we'll be able to provide better performance, faster uplink and downlink. Take uplink: if you come back from a trip with your family and you want to upload your photos.
Yes. To be able to have 6 to 8 times better uplink performance that Leo will have will be a huge difference for Delta customers. Delta is one of the largest, most respected airlines in the world, and companies in the world. To be able to build this partnership together is exciting.
Did they demo it for you? What blew you away where you said we're signing it?
We've been the leader in free, fast Wi-Fi in our industry in the world. We have made several announcements and we have 1,200 planes in our fleet with free, fast Wi-Fi, more than probably many other airlines together have today. We need stable link. Technology is moving fast. When Andy and I spoke, we learned about what Amazon Leo was building. Together with the supreme confidence we have in our relationship—we already are significant partners, we carry Amazon employees around the world, they are one of our biggest travel partners. And likewise, Andy and I did a deal together 6 years ago, so that we're already covering most of Delta applications already. It was a first fit. It will be faster than what we have today and a very cost-effective rate. That is the Wi-Fi. You know about what Amazon as an enterprise and Delta are about in terms of customer experience. What we can then do onboard together will blow people away.
How did the genesis of this deal come about? Did you start talking with each other, not thrilled with what you have with Viasat, and Delta said, or did you come to have a bunch of companies?
We were coming up on a decision point. We have a multi-partner strategy. We use Hughes for some and Viasat for others. We came up on a decision line in 2028. Andy and I have known each other a considerable while, our teams know each other well. That led to a conversation about what we could potentially do. This is new. This didn't exist 5 years ago when we launched free, fast Wi-Fi there. So that tells how fast the technology is moving. We want to be the leader and continue to be the leader. They're the leaders in what they are building.
I am sure Starlink would beg to differ. You are taking on Starlink, that endeavor. Andy, people watch movies in the air. Sometimes they watch two or three. Is there some type of a synergy where you have Amazon content? You had best opening weekend and second weekend in opening film, Project Hail Mary. This is a moment where I would ask: would there be some exclusivity firsts for Delta passengers?
First, if you have not seen Hail Mary, you should see it. First step to have really game-changing experiences with Wi-Fi on a flight: have the right Wi-Fi, right performance. One thing that we're continuing to talk about and we plan to work on together is use that foundation of Amazon Leo to build experiences around what is possible on video and music, and you can imagine audio and reading and things you might do professionally, work-wise. We have a lot of plans to leverage what our companies offer. Starlink does not have. So that is why I am saying this experience will be better than anyone else can provide.
Starlink has partnership with, I think, about 21 airlines. They are doing stuff. They have a head start. But, you know, people are wondering what can I do up there. That is why I brought up the movies. Ed, the value of this deal financially, what is it?
It is going to enable us to provide.
Money. I'm talking money.
I'm not telling you money. Substantially better experience for customers, in terms of speeds, 3 or 4x what they are used to at Delta. We had a competitive situation. We understand that Starlink—I think the numbers will be competitive. And cost substantially less than what we're paying today.
It is an increased cost. The question: will you pass it on?
