July 30, 2009 - US Airways last week became the latest U.S. carrier to announce plans for wireless inflight Internet connectivity. But for all the hype, travelers within the United States for now are much more likely to fly on planes without Wi-Fi. But when they can find it--and they will, increasingly, on American Airlines and Delta Air Lines flights, among others--passengers will find differing price points and an unfamiliar merchant on their credit card statements.
Meanwhile, organizations may have an opportunity to negotiate volume discount agreements for inflight Internet access, either with preferred airlines or Aircell, the firm providing the service today on nearly 500 planes operated by several U.S. carriers.
When asked if AirTran Airways--now offering Wi-Fi on nearly all flights--
would consider such arrangements for business customers, a spokeswoman told
Management.travel, "Definitely. With Wi-Fi, we can be very flexible to work with different business clients as needed and to help with price points. We'd look at whatever options may be in the best interest of the passengers."
When asked the same question, a Delta Air Lines spokeswoman said, "It could be considered." An American Airlines spokesman said the carrier would not address the topic.
Like AirTran, Virgin America also offers inflight Internet access across its system via Aircell. Though a spokeswoman said no corporations had asked about preferred pricing, she said that "it's something we are considering in the future."
United Airlines thus far has announced plans for Internet access on two transcontinental routes starting in the fall. Continental Airlines has not announced any plans.
"We're seeing a steady increase in the number of passengers and, not surprisingly, higher usage on the longer hauls," said AirTran senior vice president Kevin Healy. "It is big for business travelers to know with certainty that they'll have the service when they need it."
Testing The Waters
Not fully sold on the concept, JetBlue Airways and Southwest Airlines only have dabbled with inflight connectivity. Southwest is running an ongoing trial involving systems on four aircraft furnished by tech firm Row 44, "scheduled throughout our system to test for regional preferences, business versus leisure preferences, and length of haul preferences. The test will run until we collect enough information to make a convinced decision," according to a spokeswoman. "Customers scheduled to be on one of the Wi-Fi aircraft receive an email 24 hours prior to their flight alerting them to the fact."
Price points have ranged from $3 on the shortest flights to $10 on the longest ones. A Southwest official said charges "show up on the customer's credit or debit card as Southwest Airlines Wi-Fi."
Inflight Internet purchases on carriers equipped with Aircell's Gogo system, however, are charged to Aircell, and show as "Aircell Gogo Inflight."
Aircell prices generally range between $5.95 and $12.95 for laptop users, depending on flight duration, and cost $7.95 for mobile device users regardless of flight length. The company also offers a 24-hour pass for $12.95 (for multiple flights on a single carrier) and a 30-day, unlimited-use pass for $49.95 (also for flights on a single carrier). "We decided to work with each airline partner on an individual basis to determine whether offering a 30-day pass or 24-hour pass was in each airline's best interest," according to an Aircell spokeswoman. "This decision was based on a number of factors, including the number of aircraft and routes equipped with the service."
Users can register for an account on Aircell's Web site, but pre-payment for per-flight purchases is not option at this time.
Aircell currently does not directly offer corporate volume discounts, but the spokeswoman said the company "is continually soliciting feedback and opinions, as well as monitoring customer usage, based on which we will determine the need and desire for additional pricing options."
JetBlue does not charge for the limited Internet accessibility--messaging and email but no Web browsing--currently available on one aircraft for passengers with Wi-Fi-enabled devices. A spokeswoman said the airline later this year plans to expand connectivity to 20 Airbus A320 aircraft operating generally on medium- and long-haul routes.
When asked why JetBlue opted not to offer full-blown Internet access, the spokeswoman said the airline is "not really convinced of the model. Connexion [by Boeing] really never found the sweet spot on value to customers while being profitable."
Connexion was an inflight Internet service first offered commercially by Boeing in 2004. By the time Boeing pulled the plug on the program in 2006--when it determined that too few passengers were willing to pay the $10 to $30 price--the company had installed the service on 140 jets operated by ANA, China Airlines, El Al, Japan Airlines, Korean, Lufthansa, SAS and Singapore. It also had attracted at least 500 corporate clients.
"We want to provide something that allows passengers to stay connected, but at no charge," said the JetBlue spokeswoman. Still, JetBlue is "keeping an eye on what is out there and what other carriers are offering" and "not dismissing anything."
Current Availability Of Inflight Internet Connectivity On U.S. Carriers:
AirTran Airways
Aircell's Gogo inflight Internet currently is available on all flights departing from all U.S. airports. "We're working with Aircell to adapt the pricing, and still making some adjustments," Healy said. According to Aircell, AirTran customers can purchase 24-hour and 30-day passes.
Alaska Airlines
During a test between February and April, Alaska found that 96 percent of 2,100 passengers logging onto the Internet via a system on one Boeing 737-700 furnished by Row 44 "intend to use it again." The airline now plans to install Row 44 systems on additional aircraft "in the coming months" and evaluate pricing models. According to the carrier, "Row 44's technology gives Alaska the ability to control pricing."
American Airlines
Aircell Gogo is equipped on 15 of Boeing 767-200 aircraft, which "primarily" operate nonstop flights between New York and Miami, Los Angeles and San Francisco, and 80 MD-80 aircraft operating in various domestic markets. An AA spokesman said the airline by year-end intends to offer Gogo on a total of 150 MD-80s and new B737s, and in 2010 begin installation on the existing B737 fleet.
Continental Airlines
The carrier is the largest U.S. operator with no publicly announced inflight Internet connectivity plans. A spokeswoman told
Management.travel that "we continue to look at our options."
Delta Air Lines
Delta said it installed Aircell Gogo on more than 200 domestic mainline jets, including all MD-88 and MD-90 aircraft, and some B757-200s. The carrier by September intends to install the systems across the entire mainline domestic fleet--about 300 aircraft--with 200 "pre-merger" Northwest Airlines airplanes "to be completed in 2010." Details of availability are provided on
the carrier's blog site. In addition to standard per-flight pricing, Delta also offers 24-hour and 30-day passes.
JetBlue Airways
At least for now, the airline intends to provide basic connections (email and messaging) for free. JetBlue has equipped one plane with the necessary systems and plans to equip 20 more.
Southwest Airlines
As part of a trial, Row 44 systems operate in four aircraft, providing inflight connectivity for $3 to $10 per flight. Southwest continues to evaluate the concept.
United Airlines
According to the airline, Aircell Gogo will be available in fall 2009 on 13 B757 aircraft serving nonstop routes between New York and both Los Angeles and San Francisco. All passengers will have access for "a flat fee of $12.95." United said it would "assess customer feedback to determine additional rollout plans."
US Airways
The airline will install Aircell Gogo on 50 Airbus A321 aircraft starting early next year. Its Web site will include a map showing which domestic routes will offer the service, as well as Wi-Fi icons for specific flights. US Airways did not specify price points, but referenced Aircell's typical $5.95 to $12.95 range.
Virgin America
The carrier offers Aircell Gogo on all flights. Cities served include Boston, Las Vegas, Los Angeles, New York, Orange County (Calif.), San Diego, San Francisco, Seattle, Washington. Virgin customers--like those on AirTran and Delta--can purchase 24-hour and 30-day passes.
Air Canada
According to Aircell, the airline is working to provide Gogo aboard two aircraft operating on transborder routes "when the planes are in U.S. airspace." Aircell also is working to obtain approvals necessary for offering inflight Internet "seamlessly and consistently in Canada and across the border."
