Slide 1BackgroundThe PastThe ServiceThe EnvironmentSlide 6QuestionsLUFTHANSA TO UPGRADE TO BETTER WIRELESS CONNECTIONSDaniel Michaels and Andy PasztorWall Street JournalOctober 12, 2009BackgroundPlans to offer most extensive array of cellphone and internet services availableMake callsSend emailsSurf webDownload videosPartnership with PanasonicTens of millions of dollars to be invested in FlyNetAntennas alone cost 100 to 250K per planeHeavier, which increases fuel costsThe PastPrevious efforts to offer a similar feature have failedBoeing spent over $1B in 6 years on ConnexionLufthansa turned the system off in 2006The ServiceMultiple packages available$3 a minuteInternet at $12/hour or $22 for full day30% less than Connexion, but twice the price of less-capable similar domestic servicesAccess for handhelds a new focusThe EnvironmentFour other electronics companies have similar capabilitiesMore than twelve other airlines have made similar announcements Gogo to be available in 800 Delta and American jetsSouthwest and Alaskan Air signed with Row 44OnAir has signed with the likes of Ryanair and Emirates AirlinesInflight poker and shoppingQuestionsHow much of an advantage is Lufthansa likely to gain from this rollout?Who is likely to use such a service?What does the future hold for online wireless
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