Boeing Confirms It's Considering Dropping Connexion

In a press release issued yesterday, Boeing confirmed that it is "taking a series of near-term actions [to accelerate its] evaluation of options for the future of its Connexion by Boeing high-speed broadband communications business."

This announcement comes after the Wall Street Journal last week reported that the company might sell or shut down its Connexion in-flight Internet service after six years of failing to turn a profit on the business.

Boeing says it has pursued the business vigorously, and believes it has developed technology that has worked well and evolved into a useful product. "However, the market for the service has not developed satisfactorily. Therefore, the company will be working in conjunction with customers to thoroughly evaluate the Connexion marketplace and business model to determine next steps," according to its statement.

Meetings are being scheduled with its Connexion customers, Boeing says, to assess the current state of the market and develop plans that address market conditions.  But in the meantime, it will limit further commercial expansion of the service.

Up till now, Boeing has promoted Connexion heavily, and number of carriers have outfitted their aircraft with the Connexion systems, or are in the process of doing so.  These include Lufthansa, which launched the program, as well as ANA, Asiana Airlines, Korean Air, SAS and Singapore Airlines.

Boeing has approached satellite communications providers including SES Global SA, Inmarsat and Loral Space & Communications about purchasing the unit or becoming a partner, the Journal said.

It is unknown at this time what effect this action will have, if any, on Boeing's campaign to essentially make its aircraft airborne nodes that would be connected to a network of air traffic control, airports and operations' offices, to make the whole enterprise more capable and efficient.  06-27-2006.

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