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Lufthansa takes a second shot at in-flight internet

Airline convinced of demand for email at 30,000 feet, despite $320m failure

Tom Sanders in California, vnunet.com 02 Aug 2007
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Lufthansa is planning to launch broadband internet connection services on its laung haul routes by early next year, a company spokesperson confirmed to vnunet.com.

The airline is currently in the final stage of its request for proposals and was unable to provide any information on its partners. The Wall Street Journal reported that T-Mobile will provide the network connectivity.

The system is expected to cost about $100m.

In addition to Wi-Fi access for notebook computers, the system will also support cellular data traffic for SMS and email services. Voice communications won't be allowed, as the airline fear that loud conversations will annoy passengers.

The airline last year axed its in-flight Wi-Fi service when Boeing pulled the plug on the its Connexion broadband internet offering. The aircraft manufacturer wrote off $320m in investments and operating costs, citing a lack of demand. Connexion charged up to $29.95 per flight.

Consumers balked at the price tag, but Boeing always maintained that the service primarily targetted business travellers who would be able to expense the cost to their employers.

Connexion operated on board Lufthansa, SAS and Austrian Airlines flights.

OnAir, which is partially owned by Airbus, is in the process of developing a base station that will allow passengers to use their mobile phones. European regulator cleared the technology last month and it is scheduled to launch in 2008. Air France will be the first airline to offer the service, followed by bmi and TAP.


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