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You do need connection to the minecraft server to log into minecraft however you can still use it after that connection is turned off.
I have no idea how you could get other people to log into it but you just go into server setting and enable offline mode to use the server with no internet connection.
That's a fair point. I've only just got the game so my knowledge is limited. I just was wondering if their was anything blindingly obvious that I missed.
I think there was a way, though it required to pirate the game.
You can have the server offline enough by either making it local or on a VPN. Like Corpse said you do need the minecraft.net connection to be able to use multiplayer.