(Bloomberg News circulated the following story by Angela Greiling Keane on October 29, 2009.)
WASHINGTON, D.C. — Amtrak, the U.S. passenger railroad, said it will equip Acela high-speed trains on its Northeast Corridor with free Wi-Fi Internet access next year as part of an effort to attract more riders.
Amtrak will also update its self-service reservations program and put in a system that lets passengers retrieve tickets on mobile devices. The Washington-based carrier made the announcement in a five-year plan released today.
The offerings may help the railroad compete with Delta Air Lines Inc. and US Airways Group Inc. shuttle flights from Boston, New York and Washington after Amtrak’s annual ridership fell for the first time since 2002. Airlines have been expanding Wi-Fi service to more jets to lure business travelers.
“We must think big, be innovative and pursue opportunities and decisions that make good business sense because the competition is real,” Amtrak Chief Executive Officer Joseph Boardman said in a statement.
The railroad will decide whether to charge for Wi-Fi “once performance results from the initial deployment are available,” said Steve Kulm, an Amtrak spokesman. Airlines charge customers for using Wi-Fi service.
Delta, the world’s largest airline, has Aircell’s Gogo Internet service on more than half of the jets in its main operations, and plans to have it on all by the end of 2010. Delta is based in Atlanta.
US Airways is installing the Gogo system on its Airbus A321s, which comprise most of its long-haul fleet, President Scott Kirby said on an Oct. 22 conference call with analysts. The service isn’t planned on New York shuttle flights, said Morgan Durrant, a spokesman for Tempe, Arizona-based US Airways.
Amtrak trains already have outlets that can be used for laptop computers and, unlike U.S. airlines, mobile phone use is permitted on trains except in so-called quiet cars.
Passenger loads dropped 5.4 percent to 27.2 million in the 12 months ending Sept. 30 from the same period a year earlier, Amtrak said this month.