WSJ.com – Airline Wi-Fi and the power of FREE:

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More than 500 airliners are flying around the U.S. with wireless Internet access up and running, but airlines are finding that the technology that they hope will bring new revenues may be more like in-flight meals: People gobbled up food when it was free, but they find it a lot less appetizing when they have to pay.

Airlines and in-flight Wi-Fi providers say usage has been strong and is growing as more travelers sign up for the service and find it on more flights. AirTran Airways and Virgin America have Wi-Fi hotspots installed on all their aircraft: Delta Air Lines has them on more than 225 jets, and American Airlines has Wi-Fi on 100 planes.

Tim Foley

But in tests and now in regular service, usage drops off considerably when travelers must pay for the service. Alaska Airlines even tested charging just $1. The result: a lot fewer laptops, BlackBerrys and iPhones signed on.

“There’s a very substantial decline in passenger usage the minute you start charging for the service,” said Michael Planey, a consultant specializing in in-flight passenger technologies. “It really begins to invalidate the model on which this service is being built for the next 10 years.”

Another potential obstacle: lack of power ports on planes. Many road warriors already carry extra batteries for their computers and battery life has been getting longer. But connecting wirelessly can drain power, and airlines have been slow to retrofit power outlets into aircraft.

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