George Cooper is a patient man: He became CEO of OnAir, a company formed by shareholders of Tenzing alongside Airbus and airplane systems integrator SITA, in Feb. 2005. At the time, the expectation was that the satellites that their new in-flight cell phone and broadband service would rely on would be launched by Inmarsat by early 2006. The current reality is two birds in the air as of several months ago, but the third satellite--covering the critical Trans-Pacific routes--won't loft until 2007.

Ah, patience. I talked at length with Cooper about the origins of OnAir, the issues of providing satellite-based service, how fuel prices have affected the business of adding equipment to planes, and the upcoming service additions. Fuel turns out to be critical. The GSM/GPRS component that OnAir can provide weighs 42 kilograms. Their full Internet access system has a variable weight dependent on what's on a plane and other factors.

Right now, OnAir expects to offer GSM and GPRS service for multiple airlines starting in the first quarter of 2007, with more coming online as the year progresses. The company is also dependent on the Airbus A380 production schedule, now in flux after delays, as that plane will include the "Live IP" or Internet access equipment as a prewired component that airlines can opt for. Pricing for GSM/GPRS will cost about that for international roaming, or about $2.50 a minute. However, the price will drop 10 percent per year over a five-year contract per their agreements with airlines.

I joked that at these rates, a single call made on, say, Ryanair (not an announced partner) could cost more than the fares paid by all passengers on the plane. Cooper noted that the market has changed with low-cost carriers who obtain their revenue from sources other than strictly airfares. [36 min., 17 MB, MP3]