Boeing to end in-flight Internet service
Boeing announced Thursday that it can't find a buyer for its unit that sells high-speed broadband service to airlines and will shut it down by the end of the year.
The decision to close the unit, Connexion by Boeing, ends the only in-flight Internet service for commercial airline travelers.
Carriers like Lufthansa and Singapore Arilines are disapointed since its customers enjoyed this service. Lufthsa was one of the first customers to use this service and expect another provider.
Boeing will maintain the satellite-based service until the end of the year for its 10 airline customers: Lufthansa, Singapore, SAS, El Al, All Nippon, Japan Airlines, Asiana, China Air, Etihad Airways and Korean Air. About 156 commercial planes are equipped for the service. No U.S. airline is a customer.
Connexion has succeeded in delivering fast Internet connections to productivity-conscious business travelers on long-haul flights. But it has failed to gain enough customers worldwide to be a viable business. About 20 to 30 customers use the service in a typical long-haul Lufthansa flight, Urbaniak says.
On average, only about six passengers on All Nippon's Washington, D.C.-to-Tokyo flights in April used it. The service costs $26.95 a day.
Connexion's system costs about $500,000 or more to install on an aircraft. Major U.S. airlines showed much interest in Connexion when it was launched but have been struggling financially since 2001 and can't afford the service. American, Delta and United, which initially wanted to invest in Connexion, pulled out in 2001 as potential partners.
U.S. airlines are looking for cheaper alternatives. Colorado-based AirCell says it will introduce a Wi-Fi system next year for domestic airlines. New York-based discounter JetBlue says it may introduce an in-flight text-messaging or e-mail service next year.
