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par13del
Posts: 10117
Joined: Sun Dec 18, 2005 9:14 pm

RE: US Airlines: We Have Wi-Fi, But Few Pax Pay To Use

Sun Sep 30, 2012 10:16 pm

Quoting LAXintl (Thread starter):
According to the provider Go-Go they see a mere 5.4% usage across their 1,565 fitted aircraft.
Quoting LAXintl (Thread starter):
Its estimated that a 20% usage rate represents break-even point for the industry.

So either the business plan got screwed or the investors were conned with numbers that had no notion of reality, 5.4 on a 20 nreak even is huge.

Quoting LAXintl (Reply 41):
If its wrong, they how are companies like Row44, or Go-Go even going to exist ?

They have invested north of a billion in infrastructure and service, and need to recoup that investment.

The issue is not that they need to recoup, it is how soon. Based on the numbers, the pricing is either way off or the business case did not exist. The pricing can be influenced on how soon the investors want to recoup, in any event, any question that the financial experts blew it on this one?
 
ozglobal
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RE: US Airlines: We Have Wi-Fi, But Few Pax Pay To Use

Sun Sep 30, 2012 10:54 pm

Make it free in premium cabins and build it into the ticket price. That what full service carriers are for!

In Y make it available for a fee. This is how it works on the HSRs in Europe. On Thalys today from Cologne to Paris in first, most people seemed to be using some sort of wifi device.
When all's said and done, there'll be more said than done.
 
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compensateme
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RE: US Airlines: We Have Wi-Fi, But Few Pax Pay To Use

Sun Sep 30, 2012 11:19 pm

Quoting OzGlobal (Reply 101):
Make it free in premium cabins and build it into the ticket price. That what full service carriers are for!

In Y make it available for a fee. This is how it works on the HSRs in Europe. On Thalys today from Cologne to Paris in first, most people seemed to be using some sort of wifi device.

In the USA, First Class seats are generally occupied by persons who've received complimentary upgrads (either through FF programs, or the purchase of economy tickets that provide instant upgrades).
We don’t care what your next flight is.
 
crapper1
Posts: 18
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RE: US Airlines: We Have Wi-Fi, But Few Pax Pay To Use

Sun Sep 30, 2012 11:59 pm

I would blame it on two things. The price and the speed. Someone who is flying SWA or DL is probably doing it cause they got the lowest fare on a travel site. So lets say Mr Jones pays for the WiFi at 15 dollars for his 4 hours hop on Your-choice airlines. the connection prevents him from watching movies or checking email due to it crashing. If a customer is unhappy they might give it a second chance. Most don't though and if the price isn't worth the product the customer receives so the next flight they go without the WiFi being purchased.
The provider probably sets the price hence why its an arm and a leg but so are luggage fees
  
 
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par13del
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RE: US Airlines: We Have Wi-Fi, But Few Pax Pay To Use

Mon Oct 01, 2012 12:29 am

Quoting crapper1 (Reply 103):
The provider probably sets the price hence why its an arm and a leg but so are luggage fees

Yes, but the airline has the service installed on their a/c to the benefit of their pax, so when the service is crappy, do folks say WN wi-fi is crappy or that the wi-fi installed by a third party vendor on WN a/c is crappy?
The airlines have a vested interest and should definately be more involved., in WN's case, folks who complain about no assigned seating just need more ammunition to fire.
 
StuckInCA
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RE: US Airlines: We Have Wi-Fi, But Few Pax Pay To Use

Mon Oct 01, 2012 1:55 am

Quoting CompensateMe (Reply 10):
Apparently Gogo's trialing an elimination of the day passes with a flat, $10/hour fee

Wow. I usually buy a day pass, but I don't think I've ever payed more than $10. There's just no way I'd pay $10/hour or more than about $12 for a day. The only way I'd pay more than that (but still not more than $15 or $20 for a day) is if it included a movie streaming service of some sort.
 
gothamspotter
Posts: 311
Joined: Sat Jan 15, 2005 1:54 pm

RE: US Airlines: We Have Wi-Fi, But Few Pax Pay To Use

Mon Oct 01, 2012 4:25 am

It varies by airline and even by route.

See this interview with VX CEO David Cush: http://www.nycaviation.com/2012/04/v...-meltdown-future-of-in-flight-wifi

He says 20% of Virgin America passengers buy wifi, and 50% on JFK/BOS-SFO. Obviously VX caters to a younger, more tech-savvy flyer.

Someone flying Tulsa-St. Louis on Southwest is probably a bit less likely to shell out cash for Internet.
 
WNCrew
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RE: US Airlines: We Have Wi-Fi, But Few Pax Pay To Use

Mon Oct 01, 2012 8:43 am

Quoting gothamspotter (Reply 106):
Someone flying Tulsa-St. Louis on Southwest is probably a bit less likely to shell out cash for Internet.

True... but maybe someone flying STL-LAS/LAX/SAN/PHX/SEA/MCO/FLL/TPA/BOS etc just might!
ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
MountainFlyer
Posts: 501
Joined: Sat Jul 09, 2005 10:19 am

RE: US Airlines: We Have Wi-Fi, But Few Pax Pay To Use

Mon Oct 01, 2012 5:32 pm

Interestingly enough, another article is talking about the importance of WiFi onboard airliners, and quotes figures from this report that WiFi usage aboard airliners is actually as high as 28.4%

The New York Times article suggests this is only the beginning. It seems a bit contradictory to the OP article.

From the article:

Quote:
And as airlines race to create connectivity on international flights through satellite Wi-Fi, the ability to stay online in the skies will only increase, experts say....According to a report this year from the Chaddick Institute, the percentage of air travelers using technology at “random selected points” on a flight was 28.4 percent in 2011, up from 23.2 percent in 2010 and 17.6 percent in 2009.
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