
The economics of in-flight Wi-Fi - prostoalex
http://fortune.com/2015/07/01/flight-wi-fi-travel/?xid=nl_termsheet
======
aurelianito
The economics of airplane wifi remind me of the economics of the hotels wifi.
Go to a 5-star hotel and you will pay 15 extra dollars for the priviledge of
having a lousy internet access. Go to a small hostel and you will get good
internet access for free.

~~~
nly
Marriott are throwing in wifi these days, but you have to pay for premium
access if you want to stream some Netflix

~~~
magicalist
> _Marriott are throwing in wifi these days, but you have to pay for premium
> access if you want to stream some Netflix_

Note that this is _after_ Marriott's best efforts to block all wifi hotspots
to force guests to use hotel wifi:

[http://arstechnica.com/tech-policy/2014/10/after-blocking-
pe...](http://arstechnica.com/tech-policy/2014/10/after-blocking-personal-
hotspot-at-hotel-marriott-to-pay-fcc-600000/)

edit: a story from after Marriott unsuccessfully asked the FCC if hotel
operators could block wifi hotspots on their properties from all their guests:
[http://arstechnica.com/tech-policy/2015/01/fcc-blocking-
wi-f...](http://arstechnica.com/tech-policy/2015/01/fcc-blocking-wi-fi-in-
hotels-is-prohibited/)

~~~
eli
No, that was one single Marriott and it was the conference center -- they were
trying to force exhibitors to pay outrageous internet fees, not hotel guests.

~~~
magicalist
The _fine_ was for disrupting wifi hotspots in the convention space at a
single Marriott, but Marriott then petitioned the FCC to allow them to do the
same for any guest on their property, including properties without convention
spaces[1]. The FCC turned them down.

(I've amended my original post to include a link from the conclusion of the
whole affair)

[1]
[http://apps.fcc.gov/ecfs/document/view?id=60000986872](http://apps.fcc.gov/ecfs/document/view?id=60000986872)

------
mcescalante
This is why JetBlue won best customer service in 2014 and it doesn't seem like
they really have serious competition; they actually make an attempt to make
customers happy.

I book JetBlue every single time I can (even when it's more) because I can
actually use WiFi without spending more than my (already expensive) ticket
cost, and I get more than a single miniature water bottle.

~~~
reagency
You'll pay extra for Jet Blue, to avoid paying $10 for WiFi??

~~~
tw04
The $10 for wifi nets you something akin to 28.8K modem speeds. So yes, I'd
gladly pay more for a ticket that provided something approaching usable
speeds. When google.com takes 45 seconds to load, the connection is basically
useless.

~~~
jmspring
Paid for inflight wifi on United earlier this year (FRA to SFO) streamed one
way video all hands just fine.

Gogo wifi on Alaska between SJC and SEA, service is quite variable.

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obblekk
From an earlier HN post, apparently when Gogo invented their tech, basically
every airline signed long term contracts at ridiculous rates. Even if they
want to compete, their locked into a cost structure using outdated technology.

I bet in a couple years the contract cycle will churn and all of a sudden,
we'll get a EDGE/3G level performance at reasonable prices.

------
yishanl
Does anyone really expect anything of airline flights anymore? At least those
of us in commercial/economy class?

Years ago great customer service was defined as giving someone the can and
some free peanuts. Now it's touch screen "entertainment in-flight systems."
Not like any of those things have made the flying experience any better. So I
just pick the cheapest flights available. Sure, Wi-Fi is a plus, but the
environment in economy isn't exactly ideal for work.

I've primed myself to fall asleep as soon as I get into my seat before
takeoff, regardless of time of flight.

~~~
joezydeco
_Now it 's touch screen "entertainment in-flight systems"..._

Enjoy that while it lasts. United is moving to a BYOD system where you use
your _own_ phone or tablet to watch in-flight entertainment. The new cabins
have removed all screens and armrest audio systems (oh yeah, and headphones
too)

[http://www.united.com/web/en-
US/content/travel/inflight/ente...](http://www.united.com/web/en-
US/content/travel/inflight/entertainment/personal-device-entertainment.aspx)

~~~
delecti
Honestly, I prefer that anyway. I've got no shortage of devices with plenty of
my own media, and now I don't have to be stuck 12" from a screen I can't
reliably turn off, that will be shining advertisements and redundant safety
lessons in my face when I'm trying to sleep.

~~~
reagency
Yeah the screens suck, but BYOD with no in-Seat USB charger sucks.

~~~
r00fus
Just buy a 10-20Ah portable battery and you're set for mobile devices. I can
weather a 10-12h flight with one of those and my iPad/iPhone. If you have a
recent laptop, you should be able to weather 5-8hr for work; I seriously doubt
you could get better on even an international flight.

~~~
delecti
Extra bonus is having the battery available the rest of the time. My phone's
battery life isn't quite what I'd desire, so I just keep a spare ~10Ah battery
in my purse. It gets used maybe once a week at most, but it's worth it for
those occasions.

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Titanous
GoGo is quite aggressive about variable pricing. An all-day pass is $16 if you
buy it ahead of time, but if you buy it on the plane it can cost up to $50.
They also do split testing of their prices and discriminate based on the user
agent.

~~~
tehwebguy
Also, if you have an AMEX Platinum you get 10 GoGo passes (per year, I think)

~~~
colinbartlett
That's only the corporate card, not the consumer one.

~~~
oostevo
The consumer one does have Boingo access, though, which can come in handy.

~~~
reagency
Is Gogo vs Boingo basically business vs consumer? Or..?

I just realized I never realized they were different, since the name is so
similar.

~~~
zifnab06
I believe so. Boingo is also used on the Washington state ferries. Its
horrible - looking at $16 for internet for a (up to) 30 minute ferry ride.

------
chrismartin
All of this seems predicated on the assumption that no work or fun happens
without continuous internet service. Why not download and queue up your
work/entertainment ahead of the flight? I look forward to digging deeply into
something for a few hours without the notification hail and temptation to
browse the web aimlessly.

Also, it bears repeating that Gogo issues fake SSL certificates to intercept
their users' encrypted traffic.

[http://www.symantec.com/connect/blogs/gogo-inflight-
internet...](http://www.symantec.com/connect/blogs/gogo-inflight-internet-
intentionally-issuing-fake-ssl-certificates)

~~~
reagency
Because our Android devices and web apps are really bad at proper offline
sync.

------
newy
I find the $20-35 well worth it. I look forward to the day when wifi becomes
standard on all flights. In the meantime, as a quick protip, you receive
complimentary Gogo (at least on AA) with a business Amex Platinum. See
[http://ir.gogoair.com/phoenix.zhtml?c=251827&p=irol-
newsArti...](http://ir.gogoair.com/phoenix.zhtml?c=251827&p=irol-
newsArticle&id=1999486)

~~~
jordigh
Sounds like you're the article's model customer -- the person who doesn't mind
paying exorbitant prices because they own a business credit card.

~~~
ubernostrum
Well, it's always been the case that people who are seen to be wealthy/"big
spenders" actually don't have to spend so much because they get things comped.
Higher-tier credit cards have a history of these kinds of perks, with airline-
partner deals on those cards covering everything from lounge membership to in-
flight wifi to refunding the application fees for trusted-traveller programs
like Global Entry.

And if you're getting that stuff comped, why _would_ you complain about how
much it costs someone who doesn't get it free?

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bjelkeman-again
Here is what seems a recent list of airline which provide inflight wifi.

[http://blog.edreams.com/in-flight-wifi/](http://blog.edreams.com/in-flight-
wifi/)

------
contingencies
I was hoping for an explanation of how airlines globally price customer
internet access out from a business perspective; instead I got a hodge-podge
of quick reviews from a customer perspective of airlines in the US _only_.
Typical... a better title might be 'In-flight wifi by carrier (US only)'

------
sleepyhead
Paying for wifi: So airlines in America is giving not giving great customer
service. What else is new?

Meanwhile in Europe low-cost carriers like Norwegian offers free wifi on most
flights.

~~~
mirithekiwi
Meanwhile in Europe low-cost carries like Ryanair charge fees for not checking
in online or not printing your boarding pass at home.

I really don't think this is a Europe-vs-America issue.

~~~
sleepyhead
1) I don't think anyone else than Ryanair does that. I do agree they suck
though.

2) It is an American issue. Have you been on any airline from Europe, Middle
East or Asia? If you generalise the offerings and compare the level of service
then you will find that American airlines offers much lower service. Most
European airlines are quite good, and most big carriers from Asia and Middle
East are much better.

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0x0
If you pay up for a given amount of megabytes of transfer, what is the risk
that someone else can wireshark up your MAC, clone it and overrun your quota?

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mooreds
It seems claer that the main customers are businesses (or employees). Even if
I am footing the bill myself because I am a contractor, rather than expensing
it, it still makes economic sense. By having Internet on the plane and
working, I am making productive use of dead time. And exchanging even $40 when
I can bill 3x that or more is a no brainer.

Don't get me started on the benefits of the internet on flights when
travelling with kids.

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akhilcacharya
JetBlue's WiFi is still free? When is that supposed to change?

I read about their Ka band transition, but thought the free connections were
for a limited time.

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JesperRavn
Although I don't work remotely, I can get most of my work done from my laptop
even with very low bandwidth wifi. So even $35 for a 6 hour flight is a good
deal for the company considering I'm getting hundreds of dollars worth of work
done. I even pay out of my own pocket when I'm not traveling for work, since
if I'm not doing anything else I might as well do work.

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colinbartlett
I know of two cost-saving measures for Gogo:

1.) Buy your pass on the ground first and it can be half the price.

2.) Some Delta flights offer free video streaming to devices via a Gogo app.
Simply click the link that says "I need to download the app" and the internet
switches on so it can redirect you to the AppStore. Switch back to a browser
and it still works....

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craigds
Never pay for wifi. This isn't primarily a budget concern, it's just that it's
almost always _far_ worse quality than free wifi. And hotel wifi is _always_
worse than hostel wifi

