Tuesday, June 14, 2005

In-flight Wi-Fi

USATODAY reports U.S. airlines continue to flirt with high-speed Internet access on flights, but financial and technical obstacles may block it from becoming a routine travel feature. Last week, United Airlines, partnering with Verizon Airfone, said it plans to offer in-flight Wi-Fi starting in mid- to late 2006. United would be the first — perhaps the only — domestic carrier to offer passengers the ability to buy in-flight Internet access. A growing number of foreign carriers, using a satellite-based system pioneered by Boeing, are offering Wi-Fi. United, in bankruptcy-court protection since December 2002, is pursuing a newer, different method, called "air-to-ground" technology. Using ground towers, the technology would be less expensive to install and provides less-spotty coverage, particularly on short-haul flights, than the satellite system, says Brownlee Thomas, an analyst at Forrester Research.... In-flight Wi-Fi, particularly on long-haul flights, could be a sizable business for airlines. About 38% of business travelers surveyed by Forrester said they'd use the service even at a $25 flat fee per flight. Connexion customers now pay a flat fee of $29.95 per flight or $9.95 per half-hour. Bill Pallone, president of Verizon Airfone, anticipates that up to 20% of all travelers will want in-flight wireless access. Whether it can contribute to an airline's bottom line is uncertain. Airlines are cutting back on many in-flight goodies, and Wi-Fi is an expensive perk requiring "millions in outlay," said Forrester's Henry Harteveldt. Germany's Lufthansa, which last year became the first airline to offer in-flight Internet, said the service still isn't profitable. The rest of the U.S. airline industry is decidedly more tentative than United. Before Sept. 11, 2001, United, Delta and American had planned on investing in Connexion, but they backed out when travel slumped after the terrorist attacks. Now, Delta is "looking at (Wi-Fi), but there's nothing active going on," said Benet Wilson, a spokeswoman. Northwest Airlines and Southwest Airlines say they have no plans for it.

Because of my health problems I doubt if I will ever fly again, but if I could, InFlight WiFi sounds interesting to me. For earlier discussion of InFlight WiFe see this.

No comments: