Airlines Testing Waters On Rented Handheld Entertainment Devices
26 April 2004
Airline Business Report
Vol. 22; Issue 12
Phillips Business Information, Inc.
Ted, the new now-fare carrier owned by United Airlines [UALAQ], and Hawaiian Airlines [HA] are renting handheld entertainment devices to gauge whether passengers are willing to pay extra for digital music, sitcoms and other forms of entertainment.
Not only would the handheld systems bring in additional revenue, they might keep passengers from defecting to discount airlines that offer live television at every seat, namely Frontier Airlines [FRNT] and JetBlue Airways [JBLU]. Alaska Airlines [ALK] is the only carrier offering the hand-held units on some routes on a regular basis.
Jason Schechter, a spokesman for Ted, said the results of the test rental program are encouraging. "We are looking for new ways to attract passengers," he said. "We want to be competitive from a pricing standpoint and the onboard experience."
Ted charged $10 for the devices about a month ago between Denver and Fort Lauderdale, and it continues to test on that route. The airline said at the time that it was considering another test at a lower price to see if more passengers are interested. But Schechter said Ted is not going reveal further information on test prices. "If it is rolled out to a broader market we will settle on one price point," he said. He indicated it is likely that the handheld units will be offered in other markets in the future.
Known as digEplayers, the handheld systems offer language courses, cartoons and travel information. Schechter indicated the content may be expanded. "We will look at a few different options, including price point and content," he said. "We do like what we see so far."
The devices use portable, video-on-demand technology to deliver a spectrum of in-flight entertainment choices, including first-run movies. The digEplayer is about the size of a DVD player. Because the content cannot be duplicated or replayed once its proprietary battery runs out, it is possible to offer first-run movies not yet available on video in addition to a standard fare of classic films, television shows, children's programming, music and video games.
In March, Hawaiian Airlines offered the digEplayer on flights between Seattle and Honolulu. It charged an extra $10 per flight, and the airline says it took less than 15 minutes to rent all 68 players available.
Jason Schechter, United Airlines (847) 700-2278; Dan Bean, Hawaiian Airlines, (425) 793-6313.
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