Wi in the Sky

Posted on August 9, 2008

Delta Airlines will begin providing Wi-Fi access on some of its planes this fall, with plans calling for the service to be available on the entire stateside fleet by next summer.

Delta has claimed that it will be first to offer Wi-Fi on all of its mainline planes. But at least five other carriers — AA, Southwest, Alaska, Virgin, and Jet Blue — have tests or projects underway.

AA is expected to launch on three planes in August from Aircell, the same vendor that Delta is using.

Aircell works by using wireless connections between planes and antennas on the ground. Delta said its version will cost passengers US$9.95 on flights of three hours or less, and US$12.95 on flights lasting more than three hours. Passengers with Wi-Fi-ready devices will be able to access the Internet, corporate VPNs and their e-mail directories, as well as instant messaging and SMS.

No voice services will be available, in keeping with federal rules prohibiting in-flight phone calls.

Although Delta’s announcement is the most upfront yet, some question whether Wi-Fi will prove to be very popular as the U.S. economy lags and travel budgets are tightened. Despite the downturn in the economy, however, airline execs believe that offering Wi-Fi will help distinguish their companies from competitors and add some revenue at a time when many carriers are reducing the number of their flights.

Of course, if they all have it, then advantage is lost, a la motels. Five years ago, travelers were seeking out the few hotels and motels that offered Internet access. Now, you can’t find one that doesn’t.

Such is the nature of innovation and change anyway. First to market gets the prize. But not for long…