Jerseyguy
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B6 And Wireless Internet

Mon Jul 17, 2006 8:16 am

I read awhile back that Jetblue got the exclusive(??) rights to offer wireless internet in flight? Any body know the details of that?
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WMUPilot
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RE: B6 And Wireless Internet

Mon Jul 17, 2006 8:35 am

We didn't win exclusive rights but we won some bandwith to provide internet onboard. Right now LiveTv is looking into how to get the internet onboard the aircraft without increasing our costs and customer costs. I wouldn't expect to see internet for some years yet, if at all.
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jetbluefan1
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RE: B6 And Wireless Internet

Mon Jul 17, 2006 8:45 am

I too wouldn't expect it for another few years. JetBlue already has the technology, but it needs to be able to work so that the TV as well as the XM radio don't get screwed up.

As far as cost, it'll probably cost a bit to install and maintain, but all such expenses will be more than covered with the revenue that JetBlue makes from the service.

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RE: B6 And Wireless Internet

Mon Jul 17, 2006 11:14 am

Any internet service that the company provides, they are going to try and not charge the customer to use it. I take that as meaning you won't pay onboard like you have to do with the movies but I would tend to assume that some of the cost will be absorbed into the ticket prices.
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jetbluefan1
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RE: B6 And Wireless Internet

Mon Jul 17, 2006 1:06 pm

I don't think so - the free entertainment choices on JetBlue are plenty. Internet service, like on certain international airlines that already offer something similar, will probably come with a charge. I don't think this is necessarily a bad thing as many people would be willing to pay for it, including me, as long as it's priced correctly (flat $20 rate for the whole flight seems good to me).

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jetblueatjfk
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RE: B6 And Wireless Internet

Mon Jul 17, 2006 1:13 pm

They probably won't charge for it when they start it in a couple years because that will be a huge draw to B6 for many businness men and women. Having free internet could change the mind of people even if the B6 fare was a little higher. But ticket prices will probably cover this and they could probably raise fares $5 across the board to cover it all.

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jetbluefan1
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RE: B6 And Wireless Internet

Mon Jul 17, 2006 1:44 pm

Quoting JetBlueAtJFK (Reply 5):
They probably won't charge for it when they start it in a couple years because that will be a huge draw to B6 for many businness men and women. Having free internet could change the mind of people even if the B6 fare was a little higher. But ticket prices will probably cover this and they could probably raise fares $5 across the board to cover it all.

I honestly don't think that'll be the case. Considering that all people would not be using this service (those who do not have laptops, those who would rather sleep, etc.), they may not be willing to pay the higher fare. I think it'll be in JetBlue's best interest to charge this as a separate item. I think many businessmen would like such a feature and would have no problem purchasing it despite price, and it would be especially popular on those long transcon flights.

JetBlue just spent several million dollars on this, and it'll cost even more to install and maintain. While LiveTV is offered for free, I think that's more enough to be included in the ticket price. Internet service is a whole notch above and it would not make sense to let it be free. This could be such an advantage on the revenue side that simply factoring it into the price would be anticompetitive to an extent (thereby allowing others to raise their prices - so why not charge it seperately, especially as no other airline in the U.S has internet service?) as well as a misuse of resources.

In any case, when the internet service becomes available, I think JetBlue will price it just right so that it maximizes revenue. Right now some international airlines charge ridiculous prices in intervals of 30 minutes. It makes perfect sense for JetBlue to have a flat fee for short-haul, medium-haul and long-haul flights. Short could be $10, medium could be $20, and long could be $30.

We'll see what happens. But, in all honesty, from an armchair CEO's position (haha) as well as an investor's standpoint, I really think and hope that JetBlue will charge this separately.

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