Tuesday, May 26, 2009

In-flight entertainment that begins with Wi-Fi - News Analysis - NYTimes.com

May 25, 2009

BY the end of this year, about 1,000 airplanes flying domestic routes will have Wi-Fi service, according to Aircell, the company that has done nearly all of the Wi-Fi installations so far. By the end of next year, 2,000 planes will have the service, Aircell says. That is roughly two-thirds of the mainline domestic fleet, which excludes regional jets.
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So Wi-Fi is clearly going to become a new standard, even though there is no compelling evidence that more than a fraction of passengers will pay for the connection. With prices running as much as $12.95 a flight, it is unclear if customers will be receptive to another extra charge.

So how do airlines make this work long-term as a business proposition?...