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Phones have a "flight" or "airplane" mode that turns off the wireless radio parts of the device, for safe use on an airplane where radio transmitters are not allowed.
With flight mode or airplane mode OFF, user can use non-wireless functions like: music, games or organizer functions on an airplane.

Year, so basically your phone works the same way as usual, but you cannot make calls... Also, I think it saves a lot of battery. At least in experience it was so. I worked in my Notes on my cathedral essay thesis [primeessay.org], and it took almost the whole day for my battery to finally die. Not that I complain, of course!