yycworldtraveler

Boeing Press Release:

CHICAGO, Aug. 17, 2006 -- The Boeing Company [NYSE: BA] today announced that a detailed business and market analysis of Connexion by Boeing is complete, and the company has decided to exit the high-speed broadband communications connectivity markets. Boeing will work with its customers to facilitate an orderly phase out of the Connexion by Boeing service.

"Over the last six years, we have invested substantial time, resources and technology in Connexion by Boeing," said Boeing Chairman, President and CEO Jim McNerney. "Regrettably, the market for this service has not materialized as had been expected. We believe this decision best balances the long-term interests of all parties with a stake in Connexion by Boeing."

As initially disclosed in the company's second-quarter 2006 financial results on July 26, Boeing now expects to recognize a pre-tax charge of up to $320 million, or $0.26 per share, in the second half of 2006, of which approximately $290 million will be taken in the third quarter and the balance in the fourth quarter. The company also expects a benefit to earnings of approximately $0.15 per share starting in 2007 without further investment in Connexion. The company will update its financial guidance when it releases third quarter results on October 25.

The charge relates to writing down certain assets, payments of early termination fees and other costs related to shutting down the service. Boeing expects the majority of Connexion employees will find other jobs within the company.

Boeing acknowledged it was reviewing the Connexion business on June 26. This effort included an assessment of the market and discussions with existing customers and potential new business partners.

Does this mean that in-flight internet access will soon be a thing of the past? That would be a disappointing step backwards.

6andy6

It always amazes me that business so often take short term views of bussiness opportunities then re-enter them down the track often at a far greater cost.

One would hope that the people who did this analysis of the business (and no doubt were being paid good money) didnt look at three simply issues.
1. Pricing- if it is too expensive (like inflight phones) then no one will use it.
2.Did it work as often and fast as it was supposed to.
3.Maybe having it available on every flight on every airline then maybe take up rate would be better. I wouldnt have bought a mobile phone for example if it was only in one city of every 10 I visited.
Given Boeing was using base stations of various networks in the countries it flew over it could have expanded the service onto the ground. Then sold cards allowing people to access the internet worldwide and competed with separate hotel based and country networks. Voila a worldwide network avaialbale to all including business men who would no longer have to connect/pay varius networks in the different countries they visited. And at a price that would make the take up by the 'common man' not only desirable but ultimately profitable.
But off course they would have thought all about that rather than just next years profit.

uhoo

The last time I used Connexion, there was an option to log on and have the charges billed to your current ISP account. I remember trying to log on with my Telstra account but couldn't get the details right. iPass or Boingo (can't remember) also participate in Connexion so no point in Boeing trying to compete with its own partners. I think that the price was a major factor in Connexion failing. They should've charged per minute or something, not per flight. Hopefully another, more sensible company takes over the Connexion infrastructure/

ph-ndr

They should have gone the route most mobile operators have gone with GPRS traffic, change for the amount of data, not the time or the flight or some other arbitrary amount. Then you can actualy hang online the whole flight, get most of your offline things done and sitll have the availability and the odd email trickle down the link, without paying out your nose.

-A

phazlehurst

This truly stinks!... I leveled two characters from 52-60 on Warcraft using Connexion to India...

Now how am i going to get gold time?

Very annoying...

P

VC10 Boy

Shame really - it was handy for video conferencing and skype phone. Far cheaper too than using the onboard phone. Email and saying goodnight or morning to those back home using a webcam made some long trips seem as though they were closer to me.

nickbot

RIP Connexion - one of the many things that made long haul trips an absolute pleasure even in Economy (especially in the back left row of the 747, using the cleaner's power socket for my ipaq!)

Sure it'll re-emerge in one form or another in a couple of years, but like the demise of Concorde, this feels like a giant leap backwards in evolution!

golfteam

Really a shame. I still think proper marketing could have saved that business model and as others said, the uncertainty of having on all flights.

CDG 1K

Does anyone know how long the service will remain in effect? I read in an article in the IHT that LH would keep their CBB on for another couple of months. I'm hoping SQ will do the same.

Singapore_Air

Singapore Airlines, which has Connexion installed on 18 747-400s, says it remains in discussion with Boeing on an exact date for the termination of the services. The Star Alliance carrier says: “We are disappointed. We share the disappointment of customers who were starting to get to know the service better.”

simong

I belive service will be maintained till 31/12

simong

http://www.shephard.co.uk/Inflight/D...3-6387a7a39a0b

The High Flyer

Thanks for this, simong. I seriously hope SIA isn't thinking of terminating the service after 31 December, even if Panasonic or someone else takes it up.

I relish every minute of Internet connectivity everytime I use this service, even in Economy Class, with the cramped surroundings.

Paella747

This is my first time typing in the Singapore threads, but I'm flying SQ in March and I was really looking forward to using my laptop (with internet) on the plane! I'm bummed! I sure hope Panasonic gets picked up when Boeing drops out!

SuperFlyBoy

It's actually quite cool to be connected, via voice and e-mail - I just invested in a convertible tablet/laptop for mostly travel in economy.

Big laptops really cannot be used on LH in economy (non-bulkhead/EE rows), no matter how hard you try, unless the screen is on your lap and the keyboard/bottom half of the laptop on your chest!