The race to be the first to offer onboard mobile telephony is hotting up with OnAir (the joint venture established by SITA and partners Airbus and Tenzing earlier this year) and AeroMobile (a joint venture between Arinc and Telenor) vying to be the first past the post.

AeroMobile is on track to enter service early in the first quarter of 2006 while OnAir aims to launch its service in the second half.

Mobile phone use on aircraft has the potential to become a huge money-spinner. Potential revenue for voice services in Europe could reach $2.5 billion by 2010, based on a calculation of call volumes, passenger numbers and the duration of flights around Europe. There are various business models that are being considered by airlines as they seek to balance the desire for revenue generation with service provision. Initial call charges are expected to be around €1 a minute, which could absorb some of the cost of installation, but anticipations are that strong market penetration from 2008 would see call charges fall.