Apple Airplay Sound Quality


What is the potential for sound quality via Airplay? Is this essential WiFi? Or Bluetooth? What technology is being used and what are the limitations? I've reviewed all the material I can find and don't see that information (in my own non-technical language, anyway).
Thanks,
Art
artmaltman
Well, let's say this, almost every room in the Venetian @ CES this year was using a Mac product as a source, sure they're were TT's and high end CD players, but most people had either AirPlay or a Mac as a source......
Can't wait till we have high end Airplay compatible transports. It appears that airplay is lossless (but doesn't support 24/96 it think). My only concern is regarding latency and jitter issues.
I think the direction that may prove popular are airplay enabled DACs, essentially a suped up third party version of the airport express.
I'm praying that PS Audio somehow implements Airplay into their PWD Bridge and upcomming digital lens. It would be a killer feature!