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Aircell Nabs An Additional $176 Million
Now if customers would only use their product...
by Karl Bode Friday 22-Jan-2010 tags: business · wireless
There's been a lot of talk lately about how airlines may be having trouble making any money off of in-flight broadband services, with fewer than 10% of customers who step on a plane actually using it. Many customers have been spoiled by a series of free Google promotions, and now carriers are exploring various pricing options (like Continental's plan to give e-mail for free, but charging for web access). The biggest in-flight broadband player, Aircell's GoGo, charges $12.95 on flights over 12 hours, $9.95 for flights between 1.5 and 3 hours, $5.95 for flights up to 1.5 hours, and between $6 and $8 for smartphone access. Aircell this week announced they've gotten a $176 million cash infusion that should help the company while everybody figures out just where in-flight broadband is going.

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FBGuy
yippee ki yay
Premium
join:2005-03-19

what?

they may be the minority but i know at least a dozen people who have flown recently and used inflight wifi. they said it worked great.
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Matt
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12

Re: what?

said by FBGuy:

they may be the minority but i know at least a dozen people who have flown recently and used inflight wifi. they said it worked great.
If a flight is 4 hours or more, I always buy it. The problem is I am not flying as much because of being nickle and dimed for everything by the airlines.

r81984
Fair and Balanced
Premium
join:2001-11-14
Katy, TX
I loved having internet on the airplane.
It is a good investment.
--
Republicans: less fiscally conservative than that other party.

KSUJace
Golden Flash

join:2001-12-01
Chicago, IL
Reviews:
·Future Nine Corp..

Airlines needs to view this as a differentiator

the way airlines make money on this is becoming among the first to get gogo on their entire fleet. I travel weekly for business and spend on average of $45,000 /annually on airfare. I'm already thinking of dumping my loyalty to United Airlines and moving over to American. American services the same routes I travel most frequently of ORD and has nearly completed it's rollout of gogo on the fleet that services those routes (ORD-SFO-ORD).

Having inflight broadband is that important that I'm willing to leave loyalty, miles, status behind to have a better (and more productive) inflight experience.

If I can turn my 10 hours of commute weekly from downtime into productivity that amounts to more money in my pocket.

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Not all flying want to use in-flight broadband

In-flight broadband is good for those who either must have it for work or just NEVER want to be out of touch electronically. And the price is not really the issue.

But many actually prefer being out of touch while flying and enjoy the down time from being constantly reachable.

So, the cost may not be the thing keeping that 10% number form rising.
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FBGuy
yippee ki yay
Premium
join:2005-03-19

Re: Not all flying want to use in-flight broadband

this is very true. i know whenever I have flown by myself it is indeed about the one time when I am thrilled to have at least an hour of time to just myself.
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OwlSaver
OwlSaver
Premium
join:2005-01-30
Berwyn, PA
Reviews:
·Verizon FiOS

They are selling to the wrong people

Most, but not all, business travelers, need to justify every expense. In my case, my company has a policy that in flight WiFi is not a justifiable expense. If the Airlines or WiFi providers would sell their service in bulk to companies such as mine, they would sell more. Maybe these types of agreements are being made, but I have not head of any.

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Re: They are selling to the wrong people

said by OwlSaver:

Most, but not all, business travelers, need to justify every expense. In my case, my company has a policy that in flight WiFi is not a justifiable expense. If the Airlines or WiFi providers would sell their service in bulk to companies such as mine, they would sell more. Maybe these types of agreements are being made, but I have not head of any.
They do solicit GoGo Business accounts where a business can get deals for their traveling employees:

»www.gogoinflight.com/gogo/business.do
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r81984
Fair and Balanced
Premium
join:2001-11-14
Katy, TX
You can also pay a monthly fee for unlimited internet.
If if your company does not cover it, and you travel alot it might be worth it to you to save time.
--
Republicans: less fiscally conservative than that other party.

Thatfuy

@mycingular.net

Purchased wifi

I actually just purchased wifi from Gogo on my delta flight to Orlando but it only cost me $4.95 so it was easy to swallow and at 150k down and 140k up it was wasn't horribly slow bit plenty for what I wanted to do while on the plane. I was satisfied with the experience.
ame101

join:2002-05-02
Southington, CT

Re: Purchased wifi

I do 20K-100k miles a year worth it, when I can get it.

internetman

@blackberry.net

Gogo

I am writing this post from my Blackberry while currently flying over the Rocky mountains. Not only that, but I just placed a few phone calls via UMA (shh, don't tell anyone!). So far the service works decently, and the price isn't a big deal at all. I will most likely always purchase internet access if it is available on future flights.

Van
Premium
join:2009-07-08
New Orleans, LA

If it is free, I will use it...if not

I probably won't....even if my plane is a few hours

Just not worth paying a few bucks an hour for internet on a plane.
wildcat man

join:2007-11-03
Kansas City, MO

What would AAPL or MSFT do with Wi-Fi in the sky?

We focus on the connectivity. Are there apps (outside of email/ BBerry) that connectivity provides an advantage? Auction sites? E-commerce? I'd like to get 2-3 free uses per month for shelling out $50-60/ mo for an aircard, but is there another model that could make sense? Therein lies the key to unlock value in Aircell.

wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY

Re: What would AAPL or MSFT do with Wi-Fi in the sky?

said by wildcat man:

We focus on the connectivity. Are there apps (outside of email/ BBerry) that connectivity provides an advantage? Auction sites? E-commerce? I'd like to get 2-3 free uses per month for shelling out $50-60/ mo for an aircard, but is there another model that could make sense? Therein lies the key to unlock value in Aircell.
I think you are missing the point of this service. Gogo acts just like any other 802.11x wireless network. The only difference is you can access it while on a plane. Any apps or connectivity requirements you have while at work/home also work while using Gogo.
--

"You cannot help people permanently by doing for them, what they could and should do for themselves."
-Abraham Lincoln-


wildcat man

join:2007-11-03
Kansas City, MO

Re: What would AAPL or MSFT do with Wi-Fi in the sky?

Good point. Perhaps I am trying to hard to discover an air-borne value source. However, if there were a "what" that could be focused on the air (e.g., navigation devices matter little if they remain in the house, but in a car...), value could be unlocked.
chronoss2009
Premium
join:2008-09-23
kudos:2

lol free email

thats so 90's of them
LOL
sorry the whole thing is ridiculous and if your so needing to have net for that 2-3 hr flight you need to have head examined

The_ANoN

@rr.com

Should be free

I think in-flight internet should be free. Im not paying $6 or however much it is to use internet in the air.
jaymer
Professional Fixer

join:2003-05-26
Santa Clara, CA
Reviews:
·Comcast Business..

Have you ever been bored?

When I fly I hate being bored and disconnected. If I am going to be staring at the back of a seat for 2-6 hours, being able to surf the net is the ultimate way to pass the time. I can get work done, watch TV, read articles, and talk with friends.

It's even better on Virgin America since they have power at every seat.

It makes flying bearable for me and I will pay for it everytime (unless I am so tired I plan on sleeping the entire flight, i.e. After CES).

-Jamie

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