02:00 18.08.2006 | All news from "Tech News and Articles"
In-flight Web surfing takes a step back (Reuters)
Although the market may get a boost with newcomers LiveTVLLC and AirCell Inc. developing offerings, cost pressures onairlines make it unlikely that on-board Internet access will bewidely available soon.
"We've been looking for ways to connect the cabin, but ithas to make sense financially," said Billy Sanez, a spokesmanfor American Airlines. "It's going to be a bit until we seesomething feasible."
Upgrading an airplane for Internet service is a complextask, and with fuel prices high, airlines are more focused onkeeping costs down rather than offering new, expensive perks.
"It's kind of like rewiring your office," said airlineconsultant Robert Mann. "It creates a lot of downtime and it'svery expensive."
The least disruptive option is to have the technology forproviding Internet access built into new planes, but "very fewof the large U.S. carriers are in a position to be buying newairplanes," he said.
After six years, Boeing said on Thursday it would shut downits loss-making Connexion unit, which allowed airlines toprovide high-speed Internet service to passengers. Thesatellite-based service, for which Boeing failed to find abuyer, was too costly, and few airlines signed on.
The company said it would take charges of up to $320million to wind down the service, which analysts estimateattracted just over 1,000 users a day and cost as much as $150million a year to run.
Boeing becomes the second large company to withdraw fromthe in-flight communications market in recent months. In June,Verizon Communications Inc. said it was canceling its on-boardphone service by the end of the year.
CELL SYSTEM
Hoping to revive the market, AirCell and LiveTV, a unit oflow-cost carrier JetBlue Airways Corp., are planning newin-flight Internet offerings after winning licenses to operateair-to-ground communications services in June.
AirCell, which paid $31.3 million for one of the networklicenses, plans to launch its service by the end of 2007, ChiefExecutive Jack Blumenstein said on Thursday.
AirCell's service, which would turn planes into flying"hotspots," is based on cellular technology, giving it an edgeover satellite-based Connexion because the equipment is cheaperand lighter, Blumenstein said.
For example, AirCell's cellular antenna is about the sizeof a deck of cards and weighs less than half a pound (0.2 kg),while Connexion equipment was bulkier and weighed hundreds ofpounds, he said. This makes it possible to offer the servicefor under $10 per flight.
LiveTV, which paid $7 million for a smaller-capacitynetwork, is working on a business plan on how to use theacquired frequency, JetBlue spokesman Bryan Baldwin said.
The airline is not committed to taking its unit's service,if and when it does get up and running.
"Just because LiveTV would come out with a product doesn'tautomatically mean that JetBlue would get it," Baldwin said.
Stronger demand for such services appears to be fromoverseas airlines. British carrier Virgin Atlantic Airways saidthis month it planned to offer an in-flight text service, whichwill respond to passenger questions.
Lufthansa, one of Connexion's staunchest backers, said itwas on the lookout for a new partner.
"Lufthansa remains hopeful that new providers will emergein the coming months to provide this valuable service to ourcustomers," the German airline said in a statement.
Since May 2004, Lufthansa has been offering FlyNet, anin-flight Internet service provided by Connexion, free ofcharge for its long-haul business class customers.
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