United Airlines plans to announce yesterday that it is the first domestic airline to receive approval from regulators to install wireless Internet networks on its planes.
United passengers will not be able to take advantage of the service just yet. The airline is still at least a year away from having its in-flight Wi-Fi service up and running. When it does, sometime in mid- to late 2006, passengers will be able to check e-mail, send instant messages and surf the Web at 30,000 feet.
Similar services are already available on international flights operated by Lufthansa and Japan Airlines, among other carriers. Wi-Fi is also available in terminals across the country. Many airports, like LaGuardia in New York, charge a flat daily rate to use a wireless Internet connection, while JetBlue Airways offers free Wi-Fi at some of its gates.
Dennis Cary, United's senior vice president for marketing, said the airline would charge for the in-flight service but had not yet determined what the cost would be.
"We're certainly aware of what the mental price points are for our customers," he said.
Lufthansa, which offers Wi-Fi on many of its international flights, charges a flat fee of US$29.95 for an entire flight or US$9.95 for a half-hour.
Major airlines like United are trying to find new sources of revenue and rein in costs. Many are cutting back on perks or charging for things that used to be free, including food. American Airlines eliminated pillows from coach on its domestic flights last year, prompting Northwest and Delta to follow suit.
More high-tech amenities have traditionally been a marketing tool of low-fare carriers like JetBlue, which offers in-flight DirecTV service at every seat and is now installing XM Satellite Radio in its planes. Song, the low-fare subsidiary of Delta, offers a touch-screen audiovisual system with on-demand movies, video games and music.
United, a unit of the UAL Corp, said it was not reacting to competitors but responding to what its customers have said they want.
"Regardless of the competitive landscape, it's something we have heard loud and clear from our customers," Cary said.
Whether in-flight wireless Internet will entice more customers to fly United, which is operating under bankruptcy protection, is debatable.
"It's more bells and whistles that people like," said Betsy Snyder, an airline analyst at Standard & Poor's. "But does it actually lure people? I don't know. I think it's all ticket price."
United's Wi-Fi system will piggyback on its existing onboard phone network, which is operated in a partnership with Verizon. Data will be transmitted to and received from the planes through towers on the ground.
Cary said the Wi-Fi system would not interfere with communication between the cockpit and ground control.
"Between our safety experts and those at the FAA, they are completely comfortable that this technology does not conflict with any of the other on-board technology," he said.
With Wi-Fi making its way to the nation's airplanes and the FCC seeking public comment on easing rules banning cellphones in flight, will cellphones be next for United?
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