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Connexion by Boeing, RIP

How the mighty have fallen. Last week Boeing announced it was shutting down its Connexion by Boeing broadband-in-the-air program and was exiting the high-speed broadband communications connectivity market. Boeing said it would work with its customers to facilitate an orderly phase out of the Connexion by Boeing service. Those who used the service liked it. Trouble is, there weren't enough of them.

Boeing said it would take a $320 million charge, writing down the assets and paying termination fees to the customers. All Nippon Airlines, Japan Airlines, SAS, Singapore Airlines, and Lufthansa are among the airlines featuring the service. What should worry analysts who thought broadband in the sky was a good idea is not the fact that Boeing had been shopping the service for a while, but rather, that there were no takers.

Jim McNerney, Boeing's chairman, president, and CEO, said, "Over the last six years, we have invested substantial time, resources and technology in Connexion by Boeing. 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".

For more on Boeing's decision:
-see this Boeing press release
-as well as Om Malik's comments

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