Virgin America just announced free Wi-Fi over the holidays - and it is quite a definition of the holiday season - almost as long as Bloomingdales defines it - November 10th to January 15th.
Google and Virgin have partnered to make Gogo Internet Wi-fi free as "two California-based companies known for innovation, entrepreneurialism and for connecting people in new ways, have again joined forces to give Virgin America fliers the gift of in-flight connection." Wow.
Possibly of greater interest is that Virgin estimates that 12-15% of their passengers are using the service with 20-25% of passengers on long-haul routes using it. That is some serious ancillary revenue for all the airlines.