Thursday, October 7, 2010

Aircell Unwires 1,000th Plane

Aircell Unwires 1,000th Plane

Aircell has unwired its 1,000th aircraft: It's a Delta DC9 flying out of Detroit; lucky passengers will get free Wi-Fi access. Aircell says one-third of mainline aircraft flying each day in the US have its service onboard, for nearly 4,000 flights each day. Aircell's contracts should push it to 2,000 craft in 2011.

The question is, however, whether Gogo Inflight Internet will grow large enough to be profitable, for airlines to continue to want it, and for Aircell to thrive. It's impossible to know. None of the parties involved release enough numbers to perform a real analysis, and my estimates based on the limited data released indicate that the revenue is good but not great.

Aircell's service becomes most useful when it's predictably available for the routine flights of regular businesspeople. Then a fixed monthly subscription will make sense, companies will cover it for increased productivity--and there will be one more inescapable workplace in which you will toil. Excuse me: save time in the air.



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