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Airlines Compete for Inflight Internet

American, Southwest, JetBlue Hoping to Launch Soon

By Dan Schlossberg
ConsumerAffairs.com

August 2, 2007

That’s the word from carriers hoping to keep ahead of competitors by keeping passengers connected while traveling. They include:

• American Airlines – For a yet-to-be-decided fee, passengers on coast-to-coast flights next year will have access to a broadband internet service that works with laptops and other portable electronic devices.

• Southwest – Like American, it will start testing internet availability in 2008.

• JetBlue – In addition to 36 channels of free DirecTV and more than 100 stations of XM Satellite Radio, this discounter expects to offer e.mail capability next year.

• Qantas – Has set an August 2008 target date for the introduction of its internet service.

• Lufthansa – Will introduce inflight internet early next year via satellite.

Several different firms, including OnAir, Row 44, Panasonic Avionics, and AirCell, are competing for the fledgling business. They seek to fill the void created when Connexion by Boeing folded shop after U.S. airlines determined it was too expensive and too heavy to install.

Connexion was deployed by 10 international carriers.

AirCell appears to be the front-runner, since its systems will be cheaper ($100,000 per plane) and lighter (under 100 pounds) than Connexion’s. Although AirCell uses the wireless spectrum that once belonged to Verizon Airfone, it works only over the continental U.S., much like WiFi in hotels or internet cafes. That means it needs a satellite partner to expand overseas.

Passenger cost for AirCell access is also expected to be reasonably inexpensive, perhaps close to the $10 per day charged by various WiFi hotspots.

Fortunately for the majority of airline passengers, AirCell says its systems won’t allow internet-based telephone conversations.

The Federal Aviation Administration (FAA) bans use of cellphones in passenger cabins, citing safety concerns, but passenger surveys suggest comfort and quiet as their main reasons for opposing the use of portable telephones in flight.

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