Airborne Internet Making Another Comeback, But Will It Fly This Time?

from the holding-pattern dept

In-flight internet service on commercial planes is an idea that’s been kicking around for a really long time. But despite all the apparent interest in the service, nobody’s yet made it a successful business. Previous attempts have been dogged by high installation and service costs for airlines, which turned into high prices for end users that dampen enthusiasm and uptake. But in-flight internet access is apparently going to make another comeback early next year. A company called AirCell says its in-flight WiFi system costs just $100,000 per plane, weighs just 100 pounds and can be installed overnight — all important factors for airlines. It’s also offering airlines a cut of the service fees it collects, and says it won’t charge user more then $10 per day and will have roaming deals with popular hotspot networks. These all sound like significant improvements over previous failed efforts, and it uses air-to-ground radios instead of pricey satellite links. AirCell says it will block VoIP calls on the system — though it’s probably not to stave off complaints about chatty passengers, but rather because it also wants to provide paid in-flight cell phone service. Its efforts to make in-flight mobile phone use legal have stalled, so it’s now focusing on the internet aspect. While the company certainly appears to stand a better chance of success than earlier attempts at in-flight connectivity, the question remains of just how real the demand for such services is, and how willing travelers will be to pay for it.


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Comments on “Airborne Internet Making Another Comeback, But Will It Fly This Time?”

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11 Comments
Anonymous Coward says:

I don’t think the market is there for in-flight internet access.

Companies most often will not approve expense reports for “internet” connections. Even in hotels that charge $10+ for 1 day access to the internet from your room. If a company won’t approve a $10 expense when you’re in a hotel, they certainly won’t approve an expense for “internet” connection on a plane. So, until approving this type of expense is a generally accepted practice…or the price to connect is so cheap, expensing it doesn’t matter, business users won’t be using the service except on an exception basis. Similar to the phones on planes.

Anonymous Coward says:

Previous attempts have been dogged by high installation and service costs for airlines, which turned into high prices for end users that dampen enthusiasm and uptake.

The airlines want to maximise their profits and will charge as much as they can get away with regardless of the cost. The idea that the typical business operates on some kind of cost-plus plus basis in order to pass savings on to the consumer at the expense of higher profits is a myth that Techdirt should know better than to propagate.

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