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In-Flight Internet Headed For Bumpy Landing?
Users simply aren't interested in paying, say insiders...
by Karl Bode Tuesday 24-Nov-2009 tags: prices · business · wireless · consumers
Glenn Fleishman directs our attention to the fact that despite the constant calls for in-flight broadband service, Portfolio notes that people just aren't interested in paying for it. Or at least that's the conclusion author Joe Brancatelli comes to, despite admitting in the piece that hard user numbers "are nearly impossible to come by." Neither the airlines or the major in-flight Wi-Fi players (Aircell and Row44) are willing to talk real numbers, though insiders are apparently willing to talk anonymously about a few things:

...insiders admit that fewer than 10 percent of all of the people who step on a WiFi-equipped plane are logging on to the Internet. And most passengers who do log on are doing so free of charge, thanks to an endless series of no-cost trials, sponsored promotions, at-the-gate coupons, and other gimmicks. At the moment, two airlines with a substantial number of GoGo-equipped planes (American and Delta) offer GoGo gratis to first-time users.

One quoted analyst says there simply won't be enough users to fund the installation and network operation now -- or ever. 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. You have to think there is a business model here, but that we'll see several shakeouts before the companies involved figure out what the correct model is.

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WiFiguru
To infinity... and beyond
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Onboard

What they should do is just add the WiFi rate into the ticket, then give out free access on board to everybody.

It isn't hard.

ThrowDemsOut
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3 edits

Re: Onboard

said by WiFiguru:

What they should do is just add the WiFi rate into the ticket, then give out free access on board to everybody.

It isn't hard.
Except low cost airlines will NOT do this and will offer cheaper tickets and steal customers from airlines bundling WiFi. Airlines don't even bundle in peanuts or pillows or blankets anymore. What makes you think bundling WiFi will be a viable option, except maybe for planes with a 1st class section. I am sure they could bundle free WiFi in to all 1st class & maybe business class tickets, but not on any regular class tickets.--
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La Luna
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Re: Onboard

said by ThrowDemsOut:

said by WiFiguru:

What they should do is just add the WiFi rate into the ticket, then give out free access on board to everybody.

It isn't hard.
Except low cost airlines will NOT do this and will offer cheaper tickets and steal customers from airlines bundling WiFi. Airlines don't even bundle in peanuts or pillows or blankets anymore. What makes you think bundling WiFi will be a viable option, except maybe for planes with a 1st class section. I am sure they could bundle free WiFi in to all 1st class & maybe business class tickets, but not on any regular class tickets.
Plus, the majority of people, who couldn't care less about wifi on a plane, wouldn't want to pay for it as an inclusion in their ticket price.
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WiFiguru
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True, wasn't thinking of blankets and peanuts.

KoolMoe
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Annapolis, MD

Re: Onboard

But maybe that's the trick. Not just Wifi but the 'traveler's package' where a user gets a drink, peanuts, a pillow, wifi, and a small box of tissues (!) for slightly more.

JUST wifi may not be worth it but throw in a few other trinkets and I bet the takeup would be higher.

I wonder how they'd stop someone from running a WAP from their laptop for other passengers, should someone feel so inclined...
KM
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WiFiguru
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Re: Onboard

said by KoolMoe:

But maybe that's the trick. Not just Wifi but the 'traveler's package' where a user gets a drink, peanuts, a pillow, wifi, and a small box of tissues (!) for slightly more.

JUST wifi may not be worth it but throw in a few other trinkets and I bet the takeup would be higher.

I wonder how they'd stop someone from running a WAP from their laptop for other passengers, should someone feel so inclined...
KM
Good idea on the "Travelers Package". Airlines could make a few extra $$$

As for the WAP/Peer 2 Peer relay, it is probably doable...unless the sessions are only allowable with cookies or usernames/passwords. If it is MAC address auth, then you can just relay the signal through your laptop.
jvanbrecht

join:2007-01-08
Bowie, MD

Re: Onboard

Authentication is probably not cookie based simply due to the fact that there are other things on the internet other then browsers.

Its most likely done via a captive portal initially and then using the mac address and access lists to permit traffic.

The nice thing about mac filtering, is that network devices only see the neighbouring mac address, so it would be trivial to run NAT or something along those lines to allow other wireless devices to access the wifi through your connection.
jjeffeory

join:2002-12-04
USA
Sure, people LOVE to bundle. Not me, but it seems like the thing to do in this day and age.

Omega
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said by WiFiguru:

What they should do is just add the WiFi rate into the ticket, then give out free access on board to everybody.

It isn't hard.
I wouldn't want to pay the extra fee. All the flights I take are domestic (I haven't flown overseas yet). I find that I can be without internet for those 2-4 hours.
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banditws6
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I might pay for this...

...But only on the international flights I take between the U.S. and Asia. On any U.S. domestic flight, I wouldn't find it worthwhile. A book or two (or a pocket full of eBooks) keeps me occupied for that long.
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Clever_Proxy
Premium
join:2004-05-14
Chicago, IL

It's worth the money

I would gladly pay for wifi on a plane. I hate flying and I fly overseas sometimes. I go insane. If I only had to pay $12 to have some sanity for 8 hours, I'd pay it with a smile on my face.
iansltx

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I'd pay

If Frontier retrofitted their plans with Gogo or Row44 I'd pay $8 or so (price of a pay-per-view movie) to get WiFi for the hour-and-forty-five-minute flight between DEN and AUS or SAT. It would also be a nice feature to integrate into Frontier's higher-class ticket options.

jmn1207
Premium
join:2000-07-19
Reston, VA

Re: I'd pay

I've flown on AirTran out of Reagan International, and the wi-fi is a nice feature. For someone like me, that's hooked into the internet 24/7, it's well worth the money.

I'll post a message tomorrow from 10K+ feet on my way to Florida.
djeremy

join:2004-07-12
San Francisco, CA

I happily pay for it

I've used it a few times on Virgin America and think it's well worth the money. Makes the flight go by so much quicker.

I Use Dial

join:2004-01-04
Morgan Hill, CA

I don't get it, either.

These airlines seem like their jumping through a lot of hoops to offer something I won't pay for. I only fly Southwest and what I'd like to see is DC plugs for my laptop.
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MrMaster
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Re: I don't get it, either.

said by I Use Dial:

These airlines seem like their jumping through a lot of hoops to offer something I won't pay for. I only fly Southwest and what I'd like to see is DC plugs for my laptop.
bring an extra battery, use a netbook..plenty of ways to utilize longer flights without buying a DC plug for your laptop...besides, barely any room for a full size laptop on a plane.
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I Use Dial

join:2004-01-04
Morgan Hill, CA

Re: I don't get it, either.

My battery is heavier than my sub-compact laptop. My mobile command center, as I refer to it, doesn't need another piece of hardware. My slim power supply has a DC input that works with both cars and airplanes.
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MrMaster
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Re: I don't get it, either.

said by I Use Dial:

My battery is heavier than my sub-compact laptop. My mobile command center, as I refer to it, doesn't need another piece of hardware. My slim power supply has a DC input that works with both cars and airplanes.
that sounds nice.

what is it?
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I Use Dial

join:2004-01-04
Morgan Hill, CA

Re: I don't get it, either.

It's a Dell D420 that I bought back in '07, works great. I got the big battery and the Dell 'slim-line' power supply. I travel at least once a month.
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Matt
All noise, no signal.
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Jamestown, NC
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Worth It

I found it worthwhile for a flight from SLC to ATL, but if I was a frequent traveler it would be way too expensive.
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ThrowDemsOut
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1 edit

Re: Worth It

said by Matt:

I found it worthwhile for a flight from SLC to ATL, but if I was a frequent traveler it would be way too expensive.
I think I remember reading they had special deals for frequent flyers.
»www.gogoinflight.com/jahia/Jahia···airlines
»www.gogoinflight.com/jahia/Jahia···ogoPrice

They have a $25/mo price
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Poetique

join:2007-08-05
Birmingham, AL

1 edit

Re: Worth It

The problem is more than likely the fact that for the cost of a 24 hour use of airline internet service or so, you could get a full month of service from your house... seriously... that's a pretty epic markup.

Yeah, no shit it's more expensive to have on a plane, but THAT much more? What are we looking at here... about a 3000% markup? Most people ain't gonna pay that... period. Especially in this economy, but even in the best of economic times, you'll have maybe one in five people willing to pay that. And all of them will probably be flying first class...

There's an idea. Package it with first class tickets but make it an option for everyone.

jmn1207
Premium
join:2000-07-19
Reston, VA

Re: Worth It

It's a business, and they have a supply and demand. They will adjust their prices to try and make the most profit. Clearly this type of service is still hit or miss and has a long way to go before solidly establishing itself. In a 3 hour flight, I could just as easily watch a movie on my netbook or play Peggle to make the time pass more quickly.

The feature that I would love to be able to use is VoIP, which is prohibited, at least for the passengers. A Skype video call at 30,000 feet would be awesome. Heck, if it wasn't for the insurance companies, we could all be watching live videos of passengers screaming as their plane makes a water landing on the Hudson River.

Ericthorn
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Re: Worth It

Just what we need is another person yabbering away their conversation for the whole plane to hear. For the last 4yrs I flew almost every week and it's amazing the people I see sitting on their ass in the terminal find the need to suddenly make a call as soon as they sit down on the plane.

'Oh hi I'm on the plane!'

'Oh hi we just landed!'

Now I'll get to hear 'Hey dude I'm calling you over Skype from 30,000 feet in a plane!!'
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drew
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Re: Worth It

"Oh hi we just landed" is a bad call to make?

Remove the stick from your butt please.

Ericthorn
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Paragould, AR

Re: Worth It

What's wrong with waiting 5 minutes until you get off the plane? I text my message so people don't have to hear me yapping on the phone. Simple courtesy. A trait you apparently lack.

jmn1207
Premium
join:2000-07-19
Reston, VA

Re: Worth It

What airport do you use? At Dulles, there is oftentimes 20 minutes or longer before the plane is parked at the gate. Depending on the situation, I may need to give somebody that is picking me up advanced warning, so that I'm not waiting at the curb for 45 minutes or longer. You can't deal with a 30 second call telling somebody the plane just landed, the flight was good, and a simple "I love you"?

Oh, and this was posted somewhere above North Carolina using GoGo's in-flight service.


Ericthorn
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Re: Worth It

What airport? Um.. every major city in the US and a lot of other little ones you've never heard of (try Liberal, KS)

At least you emailed it in and didn't have to disrupt other passengers with your trivial info via a Skype call with GoGo.

They have these neat things at most airports now called a 'cell phone waiting area'. It's there so you can call them them when you GET OFF the plane, have your bags, and they can come get you. If not, wait outside the airport, send a txt, and they come get you. Why is that such a problem? If you're waiting at the curb 45 minutes then you're obviously not telling them you're available until you're at the curb. And really, at any major airport, you're going to wait a bit until you see them. Big deal? No.. really?

And yes, I've been to Dulles more than once...
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drew
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If someone MAKING a phone call and speaking to another individual bothers you, you might need to consider going and living in the woods somewhere where you won't encounter anyone else.

Making a 15 second phone call to my grandparents to say in an appropriate volume level voice, "Hey Grandpa, my plane just landed and I'll be de-boarding here in a minute. See you soon!" bothers you and you consider it to be not courteous, you're the one that's wrong here.
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TheMadSwede
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join:2001-01-30
Holland, MI

Re: Worth It

said by drew:

...in an appropriate volume level voice...
See, that's where you're probably different than most. Blame it on the change in air pressure or whatever, but people don't use an appropriate volume.
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drew
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Re: Worth It

He mentioned nothing of the sort. I can easily imagine the poster being angry with me if he was sitting next to me even with an appropriate volume level.
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Ericthorn
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It's just as if you were in a theater. I don't care about your 'volume'. What's makes it so important that you can't hold your call until you're actually OFF THE FRIGGIN PLANE!? I can understand if you're delayed on the tarmac and going to be late, that's one thing. But you landed, and you're going to be on time.. why do I need to hear you say 'Hi Honey, I've just landed and I'll be there soon' when you could say the same friggin thing 5 mins later 'Hi Honey just got off the plane and on the to baggage claim'

Ok, they don't have txt. I'll give that.. hey, it's only 2009 and some grand whatevers can't read a txt message because you say 'Im hr lndd b thr ina sc'.

There is absolutely no reason to have to verbally call someone the minute they say 'cell phones are ok now'.

Maybe most of you aren't old enough to remember when you they had to wait for you at the gate because there wasn't such a thing as txting, email, or god forbid, a cell phone. They had to watch these things called monitors
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DavePR

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Re: Worth It

said by Ericthorn:

It's just as if you were in a theater.

No it's not. A theater is where you go listen exclusively. An airplane is a cacophonous place where an expectation of quiet is not normal.

Ericthorn
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No, you can wait till you're off the plane. If you were at an opera and it was almost over and you're parents were coming to pick you up, do you make a phone call and say 'Mom, Dad, the play is almost over and I'll be out soon.'? We pay more for a flight than most operas.. what is the difference?

For pete's sake they CAN'T COME TO THE BOARDING AREA! They are past security, and if it's friggin grandpa and he loves you, he's probably already at the waiting area I hope.

I'm not trying to compare an opera to a plane flight, but the instance is still the same. You're not in public area. You are in an enclosed area where I am forced to hear you.

If 5-10 minutes is problem, don't fly.. drive it, then you can yap all you want.
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See 16 replies to this post

unnamed

@speakeasy.net

inflight wifi

They are not bad prices for one time flights. With the current spoke and hub model, I am not interested in paying twice to cover the 2 one hour flights I am on. Now, say $10 all day might entice me a little more.

heat84
Bit Torrent Apologist

join:2004-03-11
Fort Lauderdale, FL

3 edits

Restaurants and other business provide free Wi-Fi

What about restaurants and other business that provide free Wi-Fi for customers? How do they make that work? Because they have more customers and the cost of the free Wi-Fi is like half a cent out of EVERYBODY'S bill?
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ISurfTooMuch

join:2007-04-23
Tuscaloosa, AL

Different pricing model

I think they need to get away from the per-flight pricing model they have. That might work OK for infrequent fliers, but frequent fliers, such as business travelers, aren't going to want to pay for every single flight. They need to offer a package that allows access for a specific period of time, possibly something like a year for $50.

And for those who counter that this price is too low, people can access the Internet at home, at work, and at wi-fi hotspots, and many airports have wi-fi. Add in the fact the you often get delayed at airports for long periods before your flight leaves, so if you have work that requires access, you've likely already finished it by the time the plane boards. By the time people board the plane, they usually just want to get where they're going.

jmn1207
Premium
join:2000-07-19
Reston, VA

Re: Different pricing model

They do offer a few different options, but nothing close to $50/year. The fact that their plans are only good for a single airline indicates that the prices are relatively high because each airline is raking in a hefty portion of this fee. The airlines don't really want this to succeed. At least, it certainly doesn't seem like they do.

The link to the pricing is provided in the news article.

r81984
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Re: Different pricing model

From what I read the airlines can either buy the equipment for $100K and then share its revenue, or allow aircell to install the equipment on their plane, but then Aircell keeps all the revenue.

The reason why you have to pay per airline is the money goes towards that airlines contract and can't be used towards another airlines contract.
I would imagine this will change in a few years after everyone makes enough to pay for all the equipment and installation.
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r81984
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1 edit

This insider says....

people will pay for it.

I will be buying wifi if the plane has it unless the flight is less than 1hr.
So far only one plane I have ever rode on had it, but they did not have electrical outlets. It was on Delta and about a 3 hr flight.

said by :
Gogo served its one millionth customer in October 2009. At the current rate of expansion and with users fast approaching 100,000 per week, the two millionth user is now expected to be reached in January 2010.
That is at least $7 million dollars in revenue for putting equipment in 600 planes or about at least $12,000 a plane in revenue.

I read it costs about $100,000 per plane for the equipment and installation, so they still have a ways to go to. It does seem like after they pay off the equipment in a few years it will be very profitable.
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Kearnstd
Elf Wizard
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Mullica Hill, NJ

power jacks

id like a power jack at every seat too though, so i can use the wifi for more then 3hrs and not need to carry multiple batteries.
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ElJay

join:2004-03-17
Reviews:
·Great Works Inte..

Not enough seat pitch to comfortably use a laptop

The only airline I've been on that had in-flight WiFi is AirTran, and their legroom is so tight that I could not imagine trying to use a laptop in their cabin. I even had a free coupon to use it on a flight and had to pass. If the person in front reclines forget about using anything larger than a cellphone.

r81984
Fair and Balanced
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Katy, TX
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Re: Not enough seat pitch to comfortably use a laptop

You must be really tall.
I am 5-7 and I never had a problem on Airtran.

Also check this out: »www.kneedefender.com/html2/buy.htm
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PDXPLT

join:2003-12-04
Banks, OR
I've used GoGo a few times and it's great. Cost is not an issue since my company pays for a Wi-Fi roaming service. Makes the time fly by and I can do email and get other useful work done.

But I'll only do it when I get upgraded to First Class, which as a very frequent flier happens most, but not all, of the time. In coach there just ain't enough room. I don't really see how most airlines could expect to sell this to coach customers. I was on a short-haul Air France flight last week that had decent room (I could even cross my legs!), but that's the exception rather than the rule.

r81984
Fair and Balanced
Premium
join:2001-11-14
Katy, TX

Re: Not enough seat pitch to comfortably use a laptop

I use my laptop in coach every flight I am on without problems.
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robertg1234

join:2004-04-19
Palo Alto, CA

Death knell for international 3 years ago

For those of you who remember, Connexion by Boeing didn't last very long due to the same factors -- lack of customers.

Granted, Boeing's service was much worse. I suffered though it on a JAL flight once. I barely kept my IM running, much less any decent email. But the pricing was pretty close to the current trends.

I wonder if anybody paid attention to Boeing's failure before they started on the current domestic service(s).

jfmezei
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Re: Death knell for international 3 years ago

I dont recall the specifics, but Boeing's Connexion was also hampered by the satellites it had been using. They were much more costly and with less performant. It couldn't lower its prices. A new generation of statellites was being launched with lower costs but used by the company associated with Airbus, and Boeing had no hopes of competing, so there was no point in continuing to lose money in a system that had no hopes of competing in the future.

The current generation being talked about right now uses ground based systems with coverage only in the USA. (Air Canada is launching it only for flights between Canada and USA and it is activated only once you reach covered areas).

And yes, people will not bother paying $10 or more for internet access unless they really need it. The airlines have figured that they can get enough "business" passengers who will pay the $10 (and get re-imbursed by employers) to pay for the system. That remains to be seen.

And in an era where airlines would very much like to have coin operated toilets and reclining seats to raise revenues, it is doubtful that they would ever include the costs of internet as part of the flight, unless you buy a business class ticket. (as opposed to using FF points to upgrade to business class in which case, you don't give the airlines enough $$$ to pay for the service).
stufried
Premium
join:2003-10-13

It Isn't That Easy to Surf in Coach

If I'm not lucky enough to get bumped up to first class, it is pretty hard to work on a notebook in coach and you are always afraid that the idiot in the row in front of you is going to recline.

I had one flight where I simply asked the guy in front of me (and we hadn't had any cross words or body language at that point) whether he would give me fair warning when he reclined so that I could reposition or close my notebook. You'd think I asked for permission to sleep with us wife given his reaction.
PDXPLT

join:2003-12-04
Banks, OR

Re: It Isn't That Easy to Surf in Coach

He has every right to recline his seat, that's why they are made to recline. If you make the decision to put your laptop in his airspace when he decides not to use it, then it's up to you to monitor the situation and remove the laptop when you see that he's now going to use it.
stufried
Premium
join:2003-10-13
I didn't ask him not to recline, I asked him to raise his hand or say something and I would take down my machine.

SterlingJ85

join:2000-11-19
Millville, NJ
I absolutely agree. I almost had my Dell XPS screen ripped off because of the lip that tray table sits in. The guy in front of my FLUNG his seat back and my screen was right inside the lip. If I had been .5 seconds slower at grabbing my laptop as fast as I could my screen would have been ripped off the hinges.
bn1221

join:2009-04-29
Cortland, NY

Re: It Isn't That Easy to Surf in Coach

Ever notice its the 400 pound people that do that with no warning? My boss is a big guy and I sit behind him - he says if a fat angry jerk has to sit in front and bug me it may as well be him!
Mele20
Premium
join:2001-06-05
Hilo, HI
kudos:4

Worth it definitely!

I don't even have a laptop but I would probably buy one just to have something decent to pass the time on a 10-12 hour flight. I hate the stupid movie that shows and I hate earphones so I don't even listen to music. The earphones give me an earache and make my ears itch. So, I get tired of reading for 10-12 hours. I'd love to be able to use the internet on a long flight and it would be well worth the cost, and even my having to buy a laptop, to take advantage.
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SprintNextel

join:2006-11-13
Aurora, CO

Make the airline WiFi Free! (with MAC address spoofing)

I join the network, pull up the pay page, then scan for existing MAC addresses. Then I fire up a MAC address spoofer on my laptop, disconnect, change my MAC address to one of the others in use (or that WERE in use), then reconnect and surf away. It worked great on Virgin Airlines with their internet service.

BTW, if you use someone else's MAC address while they're still on it will cause intermittent data loss (page loading hesitation, etc.). Usually this annoys them until they just close their computer and stop using it, leaving it wide open for you.

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