The economics of in-flight Wi-Fi • Hacker News Board

Re: The economics of in-flight Wi-Fi

#11

Post by adrianb » Sun, Jul 05, 2015, 10:55 PM UTC

sleepyhead wrote: post #5

Paying for wifi: So airlines in America is giving not giving great customer service. What else is new? Meanwhile in Europe low-cost carriers like Norwegian offers free wifi on most flights.

It's the same situation on both sides of the Atlantic. Both JetBlue and Norwegian are low-cost carriers and offer free Wifi while the big flag carriers charge for it, if it's even available.

Re: The economics of in-flight Wi-Fi

#12

Post by contingencies » Sun, Jul 05, 2015, 10:57 PM UTC

I was hoping for an explanation of how airlines globally price customer internet access out from a business perspective; instead I got a hodge-podge of quick reviews from a customer perspective of airlines in the US only. Typical... a better title might be 'In-flight wifi by carrier (US only)'

Re: The economics of in-flight Wi-Fi

#13

Post by ubernostrum » Sun, Jul 05, 2015, 10:58 PM UTC

mcescalante wrote: post #9

This is why JetBlue won best customer service in 2014 and it doesn't seem like they really have serious competition; they actually make an attempt to make customers happy. I book JetBlue every single time I can (even when it's more) because I can actually use WiFi without spending more than my (already expensive) ticket cost, and I get more than a single miniature water bottle.

Except JetBlue is switching to low-cost-carrier style fare tiers, charging for checked luggage and other ancillaries, etc., largely at the behest of their shareholders who feel that being indistinguishable from the other budget airlines would be more profitable.

Re: The economics of in-flight Wi-Fi

#14

Post by ubernostrum » Sun, Jul 05, 2015, 11:01 PM UTC

jordigh wrote: post #4

newy wrote: post #2

I find the $20-35 well worth it. I look forward to the day when wifi becomes standard on all flights. In the meantime, as a quick protip, you receive complimentary Gogo (at least on AA) with a business Amex Platinum. See http://ir.gogoair.com/phoenix.zhtml?c=251827&p=irol-newsArti...

Sounds like you're the article's model customer -- the person who doesn't mind paying exorbitant prices because they own a business credit card.

Well, it's always been the case that people who are seen to be wealthy/"big spenders" actually don't have to spend so much because they get things comped. Higher-tier credit cards have a history of these kinds of perks, with airline-partner deals on those cards covering everything from lounge membership to in-flight wifi to refunding the application fees for trusted-traveller programs like Global Entry.

And if you're getting that stuff comped, why would you complain about how much it costs someone who doesn't get it free?

Re: The economics of in-flight Wi-Fi

#15

Post by yishanl » Sun, Jul 05, 2015, 11:11 PM UTC

Does anyone really expect anything of airline flights anymore? At least those of us in commercial/economy class?

Years ago great customer service was defined as giving someone the can and some free peanuts. Now it's touch screen "entertainment in-flight systems." Not like any of those things have made the flying experience any better. So I just pick the cheapest flights available. Sure, Wi-Fi is a plus, but the environment in economy isn't exactly ideal for work.

I've primed myself to fall asleep as soon as I get into my seat before takeoff, regardless of time of flight.

Re: The economics of in-flight Wi-Fi

#16

Post by obblekk » Sun, Jul 05, 2015, 11:16 PM UTC

From an earlier HN post, apparently when Gogo invented their tech, basically every airline signed long term contracts at ridiculous rates. Even if they want to compete, their locked into a cost structure using outdated technology.

I bet in a couple years the contract cycle will churn and all of a sudden, we'll get a EDGE/3G level performance at reasonable prices.

Re: The economics of in-flight Wi-Fi

#17

Post by toomuchtodo » Sun, Jul 05, 2015, 11:22 PM UTC

newy wrote: post #2

I find the $20-35 well worth it. I look forward to the day when wifi becomes standard on all flights. In the meantime, as a quick protip, you receive complimentary Gogo (at least on AA) with a business Amex Platinum. See http://ir.gogoair.com/phoenix.zhtml?c=251827&p=irol-newsArti...

Works for personal platinum Amex as well.

Between my $200 in airline credit yearly, comp' Boingo/Gogo wifi, airport lounged, etc, its worth the $450/year annual fee.

Re: The economics of in-flight Wi-Fi

#18

Post by reagency » Sun, Jul 05, 2015, 11:23 PM UTC

mcescalante wrote: post #9

This is why JetBlue won best customer service in 2014 and it doesn't seem like they really have serious competition; they actually make an attempt to make customers happy. I book JetBlue every single time I can (even when it's more) because I can actually use WiFi without spending more than my (already expensive) ticket cost, and I get more than a single miniature water bottle.

You'll pay extra for Jet Blue, to avoid paying $10 for WiFi??

Re: The economics of in-flight Wi-Fi

#19

Post by dopeboy » Sun, Jul 05, 2015, 11:44 PM UTC

reagency wrote: post #18

mcescalante wrote: post #9

This is why JetBlue won best customer service in 2014 and it doesn't seem like they really have serious competition; they actually make an attempt to make customers happy. I book JetBlue every single time I can (even when it's more) because I can actually use WiFi without spending more than my (already expensive) ticket cost, and I get more than a single miniature water bottle.

You'll pay extra for Jet Blue, to avoid paying $10 for WiFi??

On a recent American Airlines flight, a 30 minute pass cost me $10. On a not so recent AA flight, an all day pass cost me $35. Depending on the cost differential in a JB ticket, it might be worth it.

Sidenote - the prices on their pricing page [0] are significantly different than what I paid which makes me think the airlines are getting a significant enough cut to keep the status quo.

[0] - http://www.gogoair.com/gogo/listAllProducts.do

Re: The economics of in-flight Wi-Fi

#20

Post by kchoudhu » Sun, Jul 05, 2015, 11:45 PM UTC

jordigh wrote: post #4

newy wrote: post #2

I find the $20-35 well worth it. I look forward to the day when wifi becomes standard on all flights. In the meantime, as a quick protip, you receive complimentary Gogo (at least on AA) with a business Amex Platinum. See http://ir.gogoair.com/phoenix.zhtml?c=251827&p=irol-newsArti...

Sounds like you're the article's model customer -- the person who doesn't mind paying exorbitant prices because they own a business credit card.

I have no business and have three business credit cards. What's your point?