The Wall Street
Journal is reporting that Boeing may be looking to sell or even close its
Connexion In-Flight Internet service unit due to poor sales. Boeing launched
Connexion in April of 2000 on the hopes that US-based carriers would latch on
to the service and offer it to passengers. Unfortunately for Connexion, that
didn’t happen and the service is currently only available to some overseas
passengers.
One of the biggest hurdles facing the service is the immense
implementation cost associated with it for the airlines. It costs airline
around $500,000 per aircraft to outfit each plane with the necessary equipment
required to enable the service and struggling airlines just don’t currently
have the resources available to afford it.
Another hurdle airlines are facing is the lukewarm response
passengers have with the cost of internet access at 30,000ft. In-flight Internet
access currently costs passengers anywhere from $10 to $27 per flight depending
on the flight length for users to log-on. No decision from Boeing is imminent;
however, flyers seem to be drawn to cheaper alternatives. JetBlue, which
recently won an
auction from the FCC for in-flight airwaves, may launch a similar service
in the future which doesn’t rely on the Boeing technology.