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A saving grace for airlines: Wi-Fi in the sky

These days in commercial aviation, airlines are finding ways to operate more efficiently amid the toughest sector conditions since the first oil shock in 1973-74.

And while there's no love lost between passengers and the major carriers' unconventional way of increasing total consumer flying costs by adding separate baggage fees, there's one a-la-carte fee the public may be willing to pay for: a fee for internet access on airplanes.

Delta Air Lines (NYSE: DAL) announced it will start offering broadband internet service on domestic flights as early as October, The Washington Post reported Wednesday. Other airlines, including Continental (NYSE: CAL), Southwest (NYSE: LUV), and Virgin America are planning or testing internet services. (Delta will merge with Northwest Airlines (NYSE: NWA), pending U.S. Justice Department approval.)

Analysts generally credit JetBlue (NASDAQ: JBLU) with raising coach class amenity standards for flights in the United States when it introduced satellite TV and other services on its flights.

Delta's service will cost a $9.95 flat fee for flights lasting three hours or less and $12.95 for flights longer than three hours.

Public seen receptive to Wi-Fi fee

Stock analyst and frequent flier C. Leonard Bauer says Internet fees would be "a lucrative revenue stream" for the airlines, and ironically one that will probably be popular with the public.

Continue reading A saving grace for airlines: Wi-Fi in the sky

Newspaper wrap-up 4-13-07: Happy Friday the 13th!

MAJOR PAPERS:
  • Morgan Stanley (NYSE: MS) is about to purchase 13 hotels from All Nippon Airways for about $1.2B, doubling the number of hotels the investment bank owns there, reported the Wall Street Journal.
  • The Financial Times reported that Apple Inc (NASDAQ: AAPL) announced it would delay shipping its new Leopard operating system until October, due to the summer launch of its iPhone.
OTHER PAPERS:
  • According to the New York Times, citing people briefed on the discussions, Sallie Mae (NYSE: SLM) is in talks to be acquired by private equity for more than $20B.
  • The Guardian reported that exiled Russian tycoon Boris Berezovsky is planning the "violent overthrow of [Russian] President Putin".
  • The New York Post reported that Dubai is looking at buying Jones Apparel Group Inc's (NYSE: JNY) Barneys New York for $950M. Contrary to previous reports, the suitor is not linked to Qatar's royal family, but is Istithmar, a private equity firm owned by the Dubai government.
WEBSITES:
  • According to sources familiar with the matter, Apple has plans to release new iPods with Wi-Fi, reported DigiTimes.com.

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Last updated: February 13, 2012: 03:41 PM

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