More airlines providing Wi-Fi on their flights

As the globe has become increasingly outfitted with wi-fi hotspots and cell phone towers, the skies have long been the last refuge from constant connectivity. That’s changing, however, as more airlines are realizing wi-fi’s earning potential.

By its own estimate, one of the fastest-growing companies in America is Gogo, which was the first to successfully hook up planes with internet. It has since installed systems on several U.S. carriers, including Delta, American and US Airways.

According to its CEO, Michael Small, Gogo’s profits grew from $37 million in 2009 to $112 million in the first six months of 2012.”We’re now on over 1,600 commercial aviation jets, which is nearly half the U.S. fleet. We’ve done that in four years, which is extraordinarily fast,” says Small. “In just a few more years, it will be done in America.”

Though airlines pay to install the equipment, they also reap the rewards; Gogo charges the customers for internet usage — between $5 and $20, depending on flight duration — and shares its revenue with the carriers.

The drawback with Gogo’s system is that it uses an air-to-ground network of cell phone towers it built across the United States — each with a 250-mile radius of coverage — meaning its wi-fi isn’t available when flying over water. Internet on Gogo-outfitted planes is therefore limited to domestic flights. This is where California-based firm Row 44 swoops in.

Row 44 also installs wi-fi on airplanes, though unlike Gogo, it relies on a satellite system, meaning passengers can access internet even when flying over the ocean.

“This is a distinct advantage, given that two-thirds of the planet is covered in water,” notes John LaValle, Row 44’s CEO. Also, satellite systems give passengers more options, due to better bandwidth.

United Airlines and Soutwestern Airways both use Row 44’s service, with Iceland Air soon to follow. What’s more, Norwegian Air, which has also joined the fray, has just this month started offering wi-fi to passengers free-of-charge — the first airline in Europe to do so.

At the moment, connectivity is a perk; airlines that provide wi-fi or mobile services on board stand out. This will change, though, as customers increasingly start to expect the amenity, rather than merely appreciate it. LaValle feels that era has already dawned. Source: CNN