American to Expand In-Flight Wi-Fi

CHICAGO (Reuters) - AMR Corp's American Airlines said on Monday it would expand its in-flight Wi-Fi Internet service to 300 more aircraft to help lure passengers with popular revenue-generating perks. American said it would install the service over the next two years on its domestic MD-80 and Boeing Co 737-800 aircraft fleets, beginning with 150 MD-80 aircraft this year.

The carrier began offering Internet service last year to passengers on 15 Boeing 767-200 aircraft on certain routes.

Airlines have been racing to get reliable Internet access on their flights in hopes of gaining a competitive edge in the troubled airline industry. Delta Air Lines Inc said last week it would install Wi-Fi on Delta-branded U.S. aircraft by late this year.

Experts have said they expect in-flight Internet to become common in the industry.

American's mobile broadband service, which is called Gogo, is provided by AirCell. Passengers will pay $12.95 for Internet service on transcontinental flights over 1,150 miles and $9.95 for service on shorter flights.

American will charge $7.95 for passengers using handheld devices only.

(Reporting by Kyle Peterson; Editing by Andre Grenon)