Boeing Weighs Options For Internet Unit Connexion

INTERNET SPACE

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by Staff Writers
Chicago (AFP) Jun 26, 2006
US aerospace giant Boeing said Monday it may sell or disband its Connexion unit providing high-speed Internet service on airplanes, saying the service has been a disappointment. "Boeing has pursued the business vigorously, developing technology that has worked well and evolved into a useful product," the Chicago-based giant said in a statement.

"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."

Boeing said it would accelerate its review of the unit, and meet with customers to assess the current state of the market.

"In the meantime, Boeing will limit further commercial expansion of the service," the company said.

Boeing said the options being considered include "a sale, partnering arrangement or termination of service," but would not be decided until meetings with customers have taken place.

Boeing reached agreements with Lufthansa, Scandinavian Airlines System and Japan Airlines to equip their long-haul aircraft with the mobile Internet service. Airlines typically charged 30 dollars per flight or 10 dollars for 30 minutes of in-flight Internet access.

Source: Agence France-Presse

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