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Flight Deck beta?
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GPS works just fine in an airplane. I've even written an Android app that does flight navigation on your phone.
What you may be experiencing is that it takes forever for your phone to lock onto the satellites while sitting in a commercial airliner. There are a number of reasons for this:
Your phone might be in airplane mode, which shuts off the GPS.
A GPS receiver needs information about where the satellites are in order to lock onto them. There's a system called "Assisted GPS" (AGPS) where your phone gets the satellite information from the phone network, and uses that information in the GPS to get a quicker lock. If your phone is not receiving information from any cell towers, that information is not available. There are ways to get the info from the satellites themselves, but it takes much much longer.
As other posters have pointed out, if you're already going 500 mph, it's a bit of a challenge for your phone's cheap GPS receiver to get a lock.
You're sitting inside an aluminum tube, using an antenna the size of a quarter. Reception isn't good under those conditions.
Sure; it's called FlightDeck
It's still in its infancy; just something I'm playing around with.