In-Flight Internet Back Soon?

Ina Sebastian | August 02, 2007, 02:00 PM

American Airlines will test AirCell's inflight broadband service primarily on transcontinental flights beginning 2008. Main focus of the service will be business customers, similar to previous airline installations with Connexion’s service. Word is also that several other airlines would like to establish in-flight service, including Lufthansa, which has Connexion equipment on planes of its international fleet.

Aircell won the exclusive air-to-ground spectrum rights and will expand their footprint of cell sites, while providing a Wi-Fi network in the airplane. Airlines have been hesitant towards inflight services because of installation cost, downtime, and equipment weight. Aircell stated 100 pounds, $100,000, and overnight installation, and herewith seems to have an advantage towards other companies trying to establish services.

High-speed Internet is a great differentiator for airlines. While opinions on in-flight calling differ, business travelers in our surveys show a lot of interest in laptop (e-mail access) on airplanes – the majority had stated that they would use access, not only on international flight. Domestic travel enables access for a much wider group of business travelers. Public Wi-Fi users logged on to airport Wi-Fi in the last year, driven by business travel. Public Wi-Fi providers note that airport access is higher during business days. Clients can learn more about business travelers and airport Wi-Fi use in general in our published research and in our upcoming Vision Report. While consumers - in particular on long distance flights – will surely appreciate the Internet as well, issues of laptop battery life (no power outlets in Economy class) and pricing will make this service most feasible for business travelers. However, networks will also provide opportunities to push free travel related content/advertisement in walled gardens and IP based entertainment services in the future.