Ryanair hangs up on in-flight mobile phone service

Ryanair has suspended its on board mobile phone service due to a disagreement with the provider of the OnAir system. The system had been in operation on 50 aircraft and the company had plans to introduce it to the remainder of their fleet following its success.

Passenger usage of the service had been increasing over the last 13 months since it was introduced. The system allowed calls at costs in line with current roaming charges, approximately £1.50 per minute on calls and £0.40 per text message.

The system was launched amidst much fan fare and was seen as an important move from the Irish low cost carrier to attract business travellers at the peak of the economic downturn. The announcement of the termination of this contract has therefore puzzled investors.

Ryanair claimed yesterday that OnAir were “unwilling to commit...at this time” to an expansion of the service. An agreement on the planned roll-out over the entire, 230 aircraft, fleet could not be reached and the communication provider exercised its right to cancel the contract.

The airline now has plane to invite other in-flight connectivity providers to bid to run the service.
 

Source: The Times