Airline industry seems serious about going forward with Wi-Fi in sky

Airlines have been touting the possibility of in-flight Internet access for, oh, seemingly forever now.
But chances are that even the most well-traveled fliers haven't had the opportunity to update their Facebook pages or surf YouTube at 30,000 feet, at least on a U.S. carrier.
Despite industry promises over the years, Wi-Fi broadband service is available on a relatively small number of flights. Blame technological hurdles, financial turmoil and a general reluctance by airlines to invest in upgrading fleets.
The U.S. airline industry, though, now appears serious about moving forward with Wi-Fi in the sky.
A half-dozen carriers -- including heavyweights American Airlines, United Airlines and Southwest Airlines -- are testing or implementing Internet service on select flights. Other airlines hope to roll out the technology on a broader basis later this year.
"I think that within the next 18 months in-flight Internet is going to become a lot more prevalent than it is now," said Florida-based airline consultant Stuart Klaskin. "The technology has more or less been perfected to a point where it does really work well, and airlines are starting to show some genuine interest in making it happen."
Much of it is tied to consumer demand. Passengers are used to being able to access the Internet almost anywhere, and a commercial airplane is one of the few remaining places where they don't have that ability. Leisure travelers want a way to pass the time and communicate with friends and family during flights, while business travelers want to get work done without being interrupted by phone calls.
"What this really boils down to is that we really want to give our customers the option to be productive when they're flying," said Chris Mainz, a spokesman for Southwest Airlines, which recently began testing Internet technology on several planes.
Consumers also now seem willing to pay for it. A study conducted last year by Forrester Research found that almost half of the leisure travelers it surveyed said they would fork over $10 for Internet access on long flights. The percentage likely is even higher for business travelers.
That's a big factor for airlines, which are scrambling to find new sources of revenue. Charging for Wi-Fi presents an attractive, low-cost opportunity.
"Cash-strapped airlines are seeking new ways of generating ancillary revenue and are looking to differentiate themselves from competitors," said Tom Weigman, executive vice president of wireless services at Aircell, which offers an in-flight Internet service called Gogo Inflight Internet. "They have found in-flight Internet to be an affordable and effective solution."
Airlines pursuing the service fall into two camps: those using satellite-based technology and those implementing ground-based systems that use cellular signals.
Illinois-based Aircell has signed up several major airlines for its Gogo Internet service, which transmits data between the ground and the plane using cellular technology.
American Airlines is testing the service on about a dozen flights, and expects to make a decision soon on whether to implement it across its fleet. Delta Air Lines plans to offer Gogo on all its domestic flights by the end of the year, while United Airlines will offer the service later this year on its premium nonstop flights between New York City and both Los Angeles and San Francisco.
"Depending on the feedback that we get from customers, we'll look at the possibility of adding it to other aircraft," said United spokeswoman Robin Urbanski.
Aircell said it can offer speeds of about 12 Mbps, similar to what you'd get at a Wi-Fi hotspot in, say, a coffee shop.
Two other providers, Row 44 and JetBlue Airways subsidiary LiveTV, are gaining traction with satellite-based broadband service. Southwest and Alaska Airlines are both testing Row 44's technology, while JetBlue is testing its LiveTV service.
Airlines say the cost of equipping planes with Wi-Fi technology is relatively inexpensive, and it typically only takes from one to three days per airplane.
The key is finding the right price to attract both leisure and business travelers -- and at the same time provide a solid boost to the bottom line.
"I think the best way to do it is to offer a daily pass rather than charge per flight," consultant Klaskin said. "Very often I'll go from Miami to Chicago through Atlanta and then back in one day. I wouldn't want to pay for the Internet on each flight, but I'd certainly pay $25 for a daily pass."

(Contact Chris Walsh of the Rocky Mountain News at walshc(at)rockymountainnews.com.)