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Date Posted January 24, 2002
News Title Airline industry grounds high-speed Net
Posted By Editor 2
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The two leading makers of high-speed Internet equipment for airplanes say many airlines are delaying projects to wire up their fleets. Airlines are instead focusing on cutting costs and flight schedules to deal with a travel downturn.

The latest moves have put a temporary kibosh on the movement to let airplane passengers stream movies or get telephone calls while in flight. It was an effort to capture a predicted $70 billion that travelers would spend in the next 10 years accessing their e-mails or downloading movies while on an airplane.

"Things are tough for all of us," said Ed Nicol, chief executive of Tenzing Communications. Tenzing and Boeing are the two leading providers of the high-speed Internet equipment for airplanes.

"Everybody still wants connectivity, but for some airlines, it's now a low priority," Nicol said.




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