Gateway Travel Management

February 7, 2002 - Wireless Phones on Aircrafts Eliminated

Bobbi Henson, spokeswoman for Verizon Communications, parent of AT&T's biggest competitor, Verizon Airfone, said the company hopes to boost business by expanding beyond voice-only service and providing high-speed Internet access. Verizon is testing a high-speed service with United Airlines and Airbus.

The phones have been on American's planes since 1996, but the airline found that fewer than three calls a day, per plane were being made. To avoid the $2.99 connection fee and a charge of $7.60 a minute plus tax, many passengers prefer to use their personal cell phones, which is permitted in airports and on planes before their doors close.

With the airline industry losing a record $7 billion last year, other airlines are expected to follow American and remove in-flight phones, according to industry experts. Southwest Airlines was the first major airline to do so, in August.

Mark Siegel of AT&T Wireless said the company was leaving the in-flight phone business. With more people using cell phones, aviation no longer fits into AT&T's long-term business plans, he said. Other airlines that use AT&T, including Northwest and Alaska Airlines, will either have to switch to another phone service or pull out their in-flight phones, according to industry sources.