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New Planes But Still No Wi-Fi?

 
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Old Oct 12, 2010, 5:53 pm
  #16  
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Originally Posted by sbm12
I do not think that the relationship is on the skids. If that were really the case and CO wanted gogo now why wouldn't they just do it? I know that the contract with LiveTV was structured to permit any WiFi to be added, either from a LiveTV product or another one. (It was actually Jeff who told me that before someone asks me for a cite.) The LiveTV solution simply doesn't exist, but that didn't mean CO had to pull the plug on the gogo trial they had scheduled, right? Something else came into play - likely costs - to put that on ice.

I do agree that CO will eventually have a solution that covers the domestic fleet and I wouldn't be surprised if there is one that covers international as well. The Ka-band satellite solution that is LiveTV's next plan should be able to meet both needs and do it at a better price-point per megabit than either terrestrial or Ku-band solutions available today can offer. Of course, that solution is still 18+ months out.
All agreed.
I'm sorry if my use of the term "on the skids" was misleading (or incorrect) but what I simply meant was that CO has (at least for now) halted its WiFi initiative with Aircell.
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Old Oct 12, 2010, 6:17 pm
  #17  
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Originally Posted by ijgordon
This seems very counter-intuitive to me, but I'm in finance. I have to wonder what percent of those companies would reimburse hotel internet costs and how that compares to the 34% (+7%) who will reimburse in-flight internet. If it's meaningfully more, then it has to make you wonder about the logic of corporate T&E policies.
I can see it both ways on that one. Some companies negotiate the internet service in their corporate rates; IBM has that in at least some properties. So in that sense the "big guys" are paying for the internet already without needing to pay extra. Or they have corporate accounts with iPass, TMo, ATT or one of the other roaming partners that many hotels support. And then there is the part where top tier elites - which would represent most of the hotel nights, right? - get it for free. There are lots of ways to support the users' needs without spending additional money these days. Considering that those same employees have been operating without connectivity in the sky for years and the companies have survived just fine it does not seem clear that the internet need is really critical to the operation and success of the companies. Maybe a nice to have, but definitely not necessary in the vast majority of cases.
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Old Oct 12, 2010, 7:27 pm
  #18  
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Originally Posted by raehl311
There are a couple issues with in-flight WiFi.

The competing option is I stay up later or get up earlier and sleep on the plane. This is free. And, I then get to work on my home desktop with elbow room and no snooping.

Also, I really need to know, in advance, that my flight WILL have WiFi. That hasn't always been the case. If I don't KNOW I'll have it, I'll probably have already stayed up late or gotten up early and will be sleeping regardless.

The last issue is pricing; I don't think the airlines are flexible enough with this yet. Part of it is the not knowing if you'll have it on your next flight (if ALL flights have it, things like monthly plans become a lot more attractive), part of it is not having enough adjustment in pricing due to flight length and time of day.

Looking at sbm12's links, for example, Oman air charges $1 per MB for internet access - a ridiculous charge, and not surprisingly their uptake is slow. Conversely, Virgin reports pretty good uptake, and seems to have the most flexible pricing.


One thing I think no one has hit on yet is internet access while still in the airport. I have an air card that gets most of its use at the airport. If someone were to pair the inflight internet access with in-airport and even in-hotel access, that might be a more compelling product - or even an add-on to a mobile broadband plan.

But, I still think a big problem is it's very difficult to sell a product that you can't offer consistently. Even having it on all mainline flights isn't great when I might get stuck on that 2.5 hour CRJ flight without WiFi.


If I'm going to use in-flight WiFi, I'm going to have to change my habits to incorporate in-flight wifi, and I can't change my habits when it's only available on 50% or less of my flights.
Very good points.
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Old Oct 12, 2010, 8:50 pm
  #19  
 
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Originally Posted by ijgordon
This seems very counter-intuitive to me, but I'm in finance. I have to wonder what percent of those companies would reimburse hotel internet costs and how that compares to the 34% (+7%) who will reimburse in-flight internet. If it's meaningfully more, then it has to make you wonder about the logic of corporate T&E policies.
Agreed, seems quite illogical. I never checked with my company, but just as they pay for my hotel Internet they have paid for GoGo, both without question.
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Old Oct 21, 2010, 8:26 am
  #20  
 
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Some quick comments -

1) Usage rates on in-flight WiFi is < 3% - Aircell and Row 44, along with their partners, do not provide hard numbers during interviews on actual uptake but tend to speak in generalizations (including at WAEA when they were the entire panel for a WiFi discussion, which I found to be amusing)

2) The business case has still not been made on in-flight WiFi being successful...Aircell funded a significant amount of installs @ ~$80K each (1K+ aircraft installed), Row44 just raised $37M to fund SWA installs @ ~$220K each - result is that Incremental Cost per Bit + HW Cost + Maintenance < Revenue

3) United only has GoGo WiFi on its 757 p.s. NYC-LAX/SFO routes...don't expect to see that expanded to other aircraft in their fleet or Continental's, regardless of the merger

4) Continental's entire domestic mainline fleet (737NG, 757-200) will have the LiveTV product installed at some point next year
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Old Oct 21, 2010, 5:40 pm
  #21  
 
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I flew United p.s. JFK-SFO-JFK this week, and used the inflight WiFi. it worked great, and I thought it was VERY fast given we were 39,000 feet in the air.

My company's recent travel newsletter specifically stated that they will reimburse for in-air WiFi. I wasn't overly worried about it, but it's good to know it's explicitly permitted.

Good stuff!

On a side note, I was quite impressed with the p.s. service. I was in E+, not Bus or FC,and it was still a very pleasant experience. being (usually) CO loyal, I didn't know anyone still handed out pillows & blankets & free headsets...

Oh, and Channel 9 is pretty cool.

Hopefully we can take the best of UA service, combine it with the best of CO service and make magic!!

P.s. Red Carpet Club in SFO has self-serve soft drinks.... Wish more PCs and RCCs had that!
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