American Airline First to Go Online In-Flight

American Airlines Inc. became the first U.S. airline to launch wireless broadband access in-flight, turning a time robbing flight into a productive workday and launching a service that industry officials say will soon be a necessity to attract the lucrative business travelers.

American Airlines announced broadband service on its Boeing 767-200 aircraft for nonstop flights to New York and form San Francisco, Los Angeles and Miami. The company launched the service Gogo on Wednesday. Aircell, which obtained an exclusive frequency license from the Federal Commission Communications, will provide Wi-Fi in all cabins.

Dan Garton, American Ai executive VP of marketing said that American has made “history as the first and only US airline to offer full in flight Internet.”

“Today US travel changes forever,” said Jack Blumentstien, president and CEO of Aircell said in a statement.

“We are pleased to provide our customers wit the unprecedented ability to stay connected to their family, friends and business associates on the ground via the Internet while traveling 30,000 feet above the United States,” said Garton in a statement. 

The cost is just a few dollars more than an in-flight snack and will last the full flight, providing you have the battery power. Service costs $12.95 on flights longer than three hours and include full internet access enabling travelers to surf the Web, check emails, send instant messages and access corporate VPN’s with speed comparable to a Wi-Fi hotspot you’d find at a hotel or café.
For American Airlines, in-flight connectivity is a service nine years in the making and will now will be available on about 28 flights a day served by its 767-200 fleet.

The in-flight broadband is yet another revenue source for the airline industry, which has been struggling to overcome record high fuel costs. In-flight broadband is expected to generate $6.6 million in passenger revenue this year alone, according to a June report by Multimedia Intelligence.

The research firm estimates the industry will skyrocket to $936 million revenue by 2012. Jack Blumenstein, president and chief executive of Aircell, said that 2012 figure might be low. The company based in Itaska, Ill., estimates it will have its Gogo system available on 2,000 commercial aircrafts by the end of next year.

American isn’t the only carrier planning broadband service. Delta Air Lines Inc. has announced it would install Aircell’s service across its 133 McDonald-Douglas MD-88/90 jets this fall, and would have it available throughout its 330 mainline jets by mid-2009.

And Virgin America Inc. is expected to have Aircell’s system up and running across its fleet by the end of this year.

Several other carriers also are testing in-flight connectivity. Dallas-based Southwest Airlines Co. plans to test Row 44 Inc. next month. The satellite-based system is also scheduled for trial by Alaska Airways Group’s Alaska Airlines.

JetBlue Airways Corp. has tested a system that enables e-mail and text messaging, in addition to satellite-based television, a system that Houston’s Continental Airlines Inc. plans to have ready for its continental U.S. routes by next year.

By Karen Loftus