JetBlue Buying Verizon’s AirFone

Air carrier JetBlue's LiveTV unit is buying Verizon's AirFone network, enhancing its ability to offer inflight communications services.

The Wall Street Journal is reporting (subscription required) that JetBlue’s LiveTV unit has agreed to buy Verizon’s AirFone for an undisclosed amount. the most should enhance LiveTV’s ability to offer inflight messaging and communications services; the announcement comes on the heels of JetBlue’s extension of BetaBlue, in-flight Wi-Fi service aboard selected A320 aircraft.

As part of the deal, LiveTV will take over 100 air-to-ground communications facilities in the United States, along with service for AirFone’s existing government and corporate clients beginning on January 1, 2009.

LiveTV provides inflight entertainment and other services to both JetBlue and other airlines, like Continental. The companies did not reveal the financial terms of the deal.

As rapidly rising fuel costs force airlines to raise rates and begin charging extra fees for virtually any service (such as an aisle seat or a checked bag), air carriers are increasingly looking to service like in-flight connectivity as a way to keep business travelers on board, rather than seriously investigating virtual meeting technologies or (horrors) not traveling at all.