I think this is a great move. I have to admit, several years ago when other airlines were touting their individual video screens in seat backs, I kept thinking to myself, "Why does AA choose to stay so uncompetitive and behind the times and not keep up with inflight customer entertainment system technology?" The reason: I don't know, but now it doesn't matter because in recent years I've totally changed my mind on the subject. Just walk through the cabin on most flights and you'll see so many people watching what they want on their own devices. In hindsight I'm glad AA didn't install individual video screens, thereby saving money on installation and fuel costs from the added weight. Most everyone travels with their own entertainment system these day. But the age-old problem still remains: getting passengers to turn the damn things off at the appropriate time!!
AA made a decision several years ago to not move with the industry towards seat-back AVOD IFE. On the long-haul fleet, I think eventually AA will have to move in that direction. But for domestic and short-/medium-haul, I think this approach is probably more sensible. It has a much lower up-front cash outlay, lower maintenance costs going forward and lower fuel burn (weighs much less). Given all that, this would seem - depending on how the technology evolves - to be a good investment to keep AA at least reasonably competitive with other carriers' AVOD, but at a much lower cost and thus probably a much faster payback period.
Another waste of money. With I-pods, I-pads, laptops and super cheap dvd players most flyers bring their own entertainment on board.
I think that's exactly the point. If most people now bring their own devices - albeit not necessarily always their own content - AA is using a system that costs dramatically less both up-front and over the long-term and can provide just the content, without having to invest more to also provide the device (i.e., the screen). AA pays relatively little to install it, and then gets a cut of each time somebody uses it. That's more money coming in. Why do you object to that?
Plus with the MD-80 slated to be retired how likely is it that the revenue generated will exceeed the costs of procurement, installion, maintenance and extra fuel burnt carrying the system around?
Not really sure what your point is here. If you're referring specifically to the 90 MD80s that will be getting this mod to the existing WiFi system by YE11, and the additional MD80s to get it in 2012, I would imagine the company has already done that math in terms of the install work (really mod work, it sounds like) cost up-front versus the payback period given how long those planes will be in the fleet. It sounds like AA is putting this streaming video product on the MD80s that already have the GoGo WiFi system, and I would imagine - others would probably know more - that AA is expecting those MD80s to be the last ones to retire.
If anything it will create customer dissatifaction when they extpect it to be available and they get on board only to find out that Aircraft isnt equiped, much like GoGo now.
Well, GoGo now is on a lot of planes - and being installed on more as we speak. They're getting there. I agree they should have put GoGo on the 737s and 757s much faster - Delta has it on their entire domestic fleet already. Nonetheless, for the MD80s that AA plans to retire in the next few years, it just doesn't make sense - as you suggested - to pay to mod those planes. Plus, with 400+ new 737s and A320s arriving over the next decade, all to have these systems pre-installed, I'd say the "customer dissatisfaction" issue - to the extent that it exists at all - will soon be addressed.
