Things in the Sky

After testing Row 44′s internet service on four 737-700 aircraft for nearly a year, Southwest Airlines has decided to equip its entire fleet of 737s with the service, according to a post on the company’s blog. Installation will begin in the second quarter of this year with about 15 monthly installations. Southwest hopes to get that number up to 25 monthly installations, and will have entire fleet equipped by early 2012.

The big question is – what will the service cost? Well, Southwest isn’t sure yet – after providing the service for free on the test aircraft, the airline has been playing with different price points for awhile, and will keep doing so. One reason Southwest has gone with Row 44 instead of Aircell is because with the former it can control more of the branding of the product. As a result, I wouldn’t be shocked if Southwest gives the service away to some people – free Wi-Fi with a Business Select ticket would most certainly increase the value of that product. I also wonder if Southwest would be willing to provide free or discounted service to its A-List members. Yes, that could mean some lost Wi-Fi revenue, but perhaps that feature could increase loyalty and attract the frequent business travelers that Southwest has been eagerly seeking.

Jon Ostrower also reported on Row 44′s “walled-garden” concept back in October – perhaps it could find a home with Southwest?

I am also wondering how much the installations will cost Southwest, as supposedly Row 44 is more expensive to install than Aircell’s Gogo service. But that’s just the finance major in me.

But, bottom line, this is great news for Southwest passengers.