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Internet to take to skies with Air Canada

From Wednesday's Globe and Mail

Travellers will be able to click their way onto Air Canada's new WiFi service next spring as the carrier teams with Aircell LLC to install a mobile network.

The Montreal-based airline will start with two 120-seat Airbus A319s, charging $12.95 plus tax for each passenger who connects wirelessly to the Internet while flying between Toronto and two destinations in California - Los Angeles and San Francisco.

Air Canada then plans to gradually roll out Aircell's "Gogo" system across its fleet in North America.

At first, the connection between the aircraft and ground-based cellphone towers will only work in U.S. airspace, but subject to regulatory approval from Ottawa, Air Canada expects to have the service in place for domestic flights, too.

"This is going to get really large acceptance from customers," Air Canada's marketing vice-president Charles McKee said in an interview yesterday.

WiFi-enabled laptops and personal electronic devices such as BlackBerrys will work aboard planes, with the longer-term goal of routing signals to seatback TV screens, allowing customers to plug a keyboard into USB ports to gain in-flight access, he said.

WestJet Airlines Ltd. spokesman Richard Bartrem said yesterday that the Calgary-based carrier "is looking at all options for on-board Internet but has not made a commitment as of yet."

While Air Canada claims bragging rights as first out of the gate in Canada, he said WestJet needs to "ensure that the product works on numerous devices, represents good value for our guests and provides sufficient speed."

Last month, Atlanta-based Delta Air Lines Inc. unveiled ambitious plans with Aircell to launch their system for wireless devices this fall, aiming for completion by the summer of 2009. Other carriers embracing WiFi include American Airlines and Virgin America.

Mr. McKee emphasized Air Canada won't be enabling "cellphone voice usage," arguing that the cabin in the sky is one the "last bastions of solitude" away from being bombarded by cell conversations in everyday life.

Although Aircell's service is only available in the continental U.S., the company is working with regulators on establishing a similar network in Canada. First, however, it needs to prove there is sufficient demand, said Joe Herzog, Aircell's vice-president of airline solutions.

"We would like to partner with Canadian companies to create a domestic Canadian network to provide service for all airlines that will be flying through Canadian space," he said. "People are taking note and people are recognizing it is important for Canada to offer these services."

Aircell secured a dedicated slice of wireless spectrum to transmit air-to-ground data after winning a U.S. Federal Communications Commission auction for $32-million (U.S.) in 2006. Because the company cannot legally own Canadian spectrum for the same purpose, it would need to find a domestic partner that would be able to secure the licence, something the company is working on, he said.

The U.S. carriers Aircell is currently working with have opted to block access to voice over Internet telephony services such as Skype, but the airlines have asked the company not to restrict users' ability to surf the rest of the Web, including pornography. "They have chosen to let social pressure become the police, if you will," Mr. Herzog said.

AIR CANADA (AC.B)

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