Connexion gets axed


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news.bbc.co.uk/2/hi/business/5261562.stm

Boeing is scrapping its in-flight high speed broadband service because of lack of interest from leading airlines.

The discontinuation of its Connexion service will cost the plane maker $320m (169m) in one-off charges.

It invested heavily in the satellite based system but most carriers have opted for cheaper internet services using cellular networks.

Most of the 560 people working for the business are likely to be found alternative employment within Boeing.

Substantial investment

Boeing launched the service in 2004 after trialling it for several years.

Boeing said in June that it was looking for a buyer for the loss-making business but none emerged.

“Over the last six years, we have invested substantial time, resources and technology in Connexion by Boeing,” chief executive Jim McNerney.

“Regrettably, the market for this service has not materialized as had been expected.”

Connexion has proved a drag on Boeing’s business and the firm said it expected its closure to boost its profits next year.