Business Services Industry
Boeing to discontinue in-flight high-speed Connexion broadband service
Internet Business News, August 18, 2006
INTERNET BUSINESS NEWS-(C)1995-2006 M2 COMMUNICATIONS LTD
Plans to discontinue its in-flight high-speed broadband Connexion service have been unveiled by Boeing, an aircraft manufacturer.
Boeing said it is to stop the service, at a cost of around USD320m in one-off charges, due to a lack of interest from airlines.
According to Boeing, although it made substantial investment in time resources and technology, in the satellite-based Connexion system, many carriers have selected less expensive Internet services offered by cellular networks.
The Connexion service was introduced by Boeing in 2004 following a trial over several years, and the company revealed in June this year that it was looking for a buyer for the service, though none materialised.
The company said it expects the end of the Connexion service to boost next year's profits. It confirmed most of the 560 people currently employed for the Connexion service are expected to be found new employment within Boeing.
((Comments on this story may be sent to info@m2.com))
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