The competition to provide in-flight WiFi service is on.  Aircell, the market leading company that provides in-flight WiFi service using ground-based stations, now has competition with the new company Row44 whose technology will use satellite connections.  Aircell’s system known as Gogo is already installed on 460 airplanes, and the company is planning to have it on around 1,000 airplanes by the end of the year.  AirTran and Virginia America are two airlines that already have Gogo on their flights, and Delta, American, and United Airlines are installing the system as well.

The chief executive of Row44 estimates their Wifi system will be installed on 500 to 1,000 airplanes worldwide by the end of next year.  Southwest and Alaskan Airlines are both testing Row44’s systems on a few of their planes but are not expected to makes decisions about installations until after the summer.

One factor that may be important in who will take the lead with in-flight Wifi service is pricing.  In today’s economy, having Internet on your air travel will be a luxury for most people.  How much will people be willing to spend to play a few games, check facebook, respond to emails etc.?  Aircell recently began offering a 24-hour pass for Wifi service charging $12.95 (which could cover multiple flights).  Row44 is planning on charging around $10 for long-haul flights and $5 for short-haul flights.

As exciting as having Internet in the sky sounds, people will have to decide if their web surfing is worth the few extra bucks.

Will in-flight phone calls be next?

You can read more about this here .

By Lexie Sperduto