MONTREAL - SkySurf Canada wants inflight Internet to take off and is looking to bring the service to passengers on Air Canada (TSX:AC.B) and other airlines flying in Canadian skies.

Ottawa-based SkySurf has won a licence to provide the service for airlines in Canada.

"We see a huge pent-up consumer demand," said CEO Raed Almasri.

"We're connected everywhere. In the car, at home, everywhere except the plane," he said.

Inflight Internet is starting to be offered on a small number of airlines, such as American Airlines and Delta Airlines.

Air Canada will begin the service on the Toronto-Los Angles and Toronto-San Franciso routes later this year, spokesman Peter Fitzpatrick said.

Air Canada is working with U.S. company Aircell, which will provide the service in U.S. airspace through a series of cell towers.

Aircell wants to expand its footprint north of the border and expects to negotiate an agreement with SkySurf to provide the service in Canada, said Robin Salem, Aircell's senior vice-president of strategy and business development.

The goal is to allow passengers to enjoy inflight Internet service "seamlessly and consistently throughout Canada and across the board," Salem said in an email.

Analyst Daryl Schoolar said inflight Internet will start to become more common next year and in 2011.

"This is the year of ramping up," said Schoolar, senior analyst with the mobile Internet group at U.S.-based In-Stat, which does high-tech market research.

Schoolar said consumers know they can get Wi-Fi Internet for free but will pay for it when they don't have a choice.

"An airplane is perfect for it," he said from Scottsdale, Ariz. "You have a captive audience that's playing with devices that have Wi-Fi."

Prices for the service on planes usually range between $8 and $13.

Almasri said SkySurf paid $2.1 million for its piece of spectrum, or airwaves, to offer air-to-ground service that will use a series cellular towers.

His company beat telecom MTS Allstream Inc. in the recent Industry Canada auction.

"Passengers flying from Canada to the U.S.A. would have a seamless handoff and vice versa," he said, adding he has had positive preliminary discussions with Aircell and wants to provide the service to other airlines.

He also said there are also many flights from the United States and Europe that fly over Canadian airspace that could use SkySurf's Internet service.

But Almasri, formerly of Toronto-based Jaguar Wireless, an unsuccessful bidder for wireless spectrum last year, noted there's a lot of work to be done such as choosing tower sites and outfitting planes

Technology writer Glenn Fleishman said a partnership between SkySurf and Aircell would mean the Canadian company would only have to put up about 20 cell towers. Aircell already has a lot of towers along the border with Canada, he said.

"That's a huge incentive for any Canadian company," said Fleishman, editor of website Wi-Fi Net News.

Aircell is also trying to get into Mexico and wants to dominate the field, Fleishman said.

"Aircell is hoping to have alliances or direct ownership of basically the Western Hemisphere."

Southwest Airlines also has tested inflight Wi-Fi based on a satellite connection from California provider Row 44.

WestJet Airlines(TSX:WJA) said it has no plans to offer inflight Internet in the near future.

"We are aware that other carriers in the United States have done so, and are monitoring their experience to determine how popular it is as well as what the advantages and disadvantages are," spokesman Robert Palmer said.