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American Airlines Begins Internet Battle

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McClatchy-Tribune

The Tampa Tribune

Published: August 24, 2008

DALLAS - The rehearsals are over and last-minute tweaks have been made.

American Airlines' new in-flight broadband service went live Wednesday.

For $12.95 per flight, passengers on AA flights using its Boeing 767-200 will be able to surf the Internet, check e-mail, instant message and access corporate VPN accounts using the system by Aircell LLC.

The ground-based system - called GoGo - won't enable any voice-based functions.

American says it will test GoGo on its fleet of 15 767-200s, which are used primarily on transcontinental flights, for three to six months.

Assuming everything goes well, the carrier may expand to the rest of its fleet.

American allowed passengers on a few flights to test the system June 25 and Aug. 13.

Rival Delta Air Lines Inc. announced this month that it will install the system on its fleet of 133 MD-88/90 aircraft this fall and plans to offer it across its 330 mainline domestic fleet by mid-2009.

Several carriers are testing in-flight connectivity. Dallas-based Southwest Airlines Co. plans to test a satellite system by Row 44 Inc. next month.

Henry Harteveldt, an analyst with Forrester Research, said the new service would provide the backbone for future airline in-flight entertainment and it won't be long before consumers come to expect the access.

In-flight broadband is expected to generate $6.6 million in passenger revenue this year, according to a June report by MultiMedia Intelligence.

The research firm estimates the industry will skyrocket to $936 million revenue by 2012.

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