Jetstar and Virgin say that the rollout of Wi-Fi internet on board flights in Australia won't take place until third party providers begin installing terrestrial Wi-Fi base stations to provide internet connectivity.

Virgin Blue (ASX:VBA) has settled out of court with the IT company deemed responsible for a failure in the airline's system last year.

Virgin Blue says an IT glitch in its computer system hit the airline but denies reports of long queues at its airport terminals.

Virgin Blue Holdings Ltd says last month's outage of its reservations, check-in and operating systems has cost the business between $15 million and $20 million.

Virgin Blue says its airport check-in and boarding systems are back online and operating as normal after a system failure on Sunday caused widespread chaos. It says airports across the country are congested on Monday, but it's working to minimise inconvenience.

Between 2005 and 2010, Gartner estimated IT managers and executive decision makers have gone from dealing with an average of 3.7 vendors to 10. The onset of Cloud computing as well as the revival of service outsourcing in wake of the economic downturn have only exacerbated this as companies increasingly look to multi-source their services to obtain the functionality they need at a cost they can afford.