Boeing to Discontinue Connexion by Boeing Service

[DAL767-400ER]

http://biz.yahoo.com/prnews/060817/nyth052.html?.v=58

CHICAGO, Aug. 17 /PRNewswire-FirstCall/ -- 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.

Bad news for all the people who feel important because they are online at 33,000ft .

[MaxPower]

Well that was a suprise. So much for that effort only to get this result.

[FlyingPhotog]

http://biz.yahoo.com/prnews/060817/nyth052.html?.v=58

Bad news for all the people who feel important because they are online at 33,000ft .

Or bad news for those of us who are just bored onboard.

[DAL767-400ER]

Or bad news for those of us who are just bored onboard.

You know, there's this thing called a "Book". Might have heard about it, consists of words printed on a paper combined to make an interesting read, I hear it's very different from just staring at a screen for hours .

[FlyingPhotog]

You know, there's this thing called a "Book". Might have heard about it, consists of words printed on a paper combined to make an interesting read, I hear it's very different from just staring at a screen for hours .

Ok course I know books, don't forget who I work for. We have no IFE.

[CathayPacific]

I thought business was not bad for connexion by Boeing...

Boeing could have just spinned it off on the market and let it run by itself instead of simply folding it.

[MaxPower]

I thought business was not bad for connexion by Boeing...

Boeing could have just spinned it off on the market and let it run by itself instead of simply folding it.

Looking now at the market for it, wonder if this would do a "comeback" in the future ?

[wannabepilot777]

Thats too bad. It was an interesting and exciting program. It was just not priced high enough to make a dime for Boeing. They undervalued the service and didn't provide the right type of paymet programs (ie: company accounts, etc.)

[Burrd255314]

What I would be interested in finding out is what percentage of people using the service were using it for business?

Due to the current security situation I would think that it isn't worth the hassle for business-people to fly to meetings, when they can have video conferencing at home.
The equipment would therefore be under-utilised.