Engadget managed to get an interview with Sir Richard Branson, here's a short snip:
We know internet is in the works for Virgin America, coming in 2008, what about the "dreaded" possibility of in-flight cellphone usage that is so debated currently?
Well, the internet, I'm delighted to say, we're going to introduce next year, and I think that once we have the internet, I don't think phones will be that needed. I think people will be able to communicate with people on the ground through the internet. We've gotten phone in Virgin Atlantic and we find they don't get used that much, but there is enormous demand for internet, and that's why we're rushing ahead for that.