AA discontinued inflight phones from AT&T Claircom when they went bankrupt in 2002. Claircom's bankruptcy effected American, Northwest, Southwest, Alaska Airlines and others. AT&T phones, like Verizon Airphone phones, used "NATS" or North American Telecommunication System which is a terrestrial air-to-ground communication system.

Communications rates are less expensive over NATS than satellite based systems which remain on AA 767 and 777 aircraft for customer convenience. AA's satellite system rates are competitive with other airlines satellite rates. The benefit of satellite systems is that they can be used worldwide.

AA continues to research broadband connectivity systems for its customers. Current "narrowband" connectivity systems created for airlines do not provide the type of experience most customers have on the ground, and current broadband systems need to be more affordable. Both are expensive for airlines to aquire, install and maintain. Hopefully the technology and business models will improve as customers show they value this type of service.