MONTREAL - Internet in the sky is starting to be a click away and airlines Air Canada (TSX:AC.B) and Calgary-based WestJet Airlines Ltd. (TSX:WJA) are considering the service for their passengers.
User-pay Internet is now being offered on American Airlines by U.S.-based Aircell, which offers broadband service from a network of cell towers based on the ground to aircraft.
American Airlines is offering what it's calling the first in-flight broadband service to the U.S. market and it's expected to lead the way.
"Obviously, I think this is one of those things that travellers are going to expect and airlines will feel the need to provide," Aircell's Fran Phillips said Tuesday.
Aircell would like to offer its Gogo Internet service to Air Canada and Westjet, said Phillips, senior vice-president of airline solutions.
"We have talked to both of the Canadian carriers as well as carriers in Mexico," she said from Itasca, Ill, near Chicago.
"All of them have shown a lot of interest. We're a little bit further along with some than others in getting to an agreement with them."
Air Canada (TXM:AC.A) said it's looking at providing web surfing to its passengers.
"We are actively engaged in discussions with in-flight Internet providers and are expecting to make further announcements later this autumn," said Air Canada spokeswoman Isabelle Arthur.
Air Canada didn't provide any further details on timing or prices or to whom it's talking about providing the service, which would generate revenue for the airline.
WestJet is also looking at in-flight Internet service, but doesn't expect to offer it right away.
"It's definitely something we have been looking at. We've looked at a couple of different options," said airline spokeswoman Gillian Bentley.
Aircell said it has been working with Transport Canada and Industry Canada to obtain the appropriate licences to operate in this country for sometime.
The price of Aircell's Gogo Internet service is similar to Wi-Fi Internet costs in such places as hotels and coffee shops, running between about $10 and $13.
Phillips said the goal is to keep Internet service in the air in line with prices on the ground.
Aircell isn't releasing any numbers on how many American Airlines passengers are using the service, which was just launched last week, for competitive reasons.
Airline industry analyst Karl Moore said Internet service is another revenue stream for airlines.
"The airlines are looking for any sort of revenue they can get," said Moore, who teaches at the Desautels Faculty of Management at McGill University in Montreal.
"It makes very good sense to have it on an airplane for a reasonable price," Moore said, noting that Via Rail already offers Internet service for train travellers.
However, Moore said airlines still have financial struggles, including high fuel prices, and offering Internet service means spending more money.
But Moore said given the popularity of Internet access with consumers it should become a popular and common airline service not too far down the road.
