Inflight Internet Venture In Trouble

Citing lack of demand by US airlines for inflight wireless internet access, Boeing is considering selling or closing down its six-year-old Connexion by Boeing internet venture.

In a company release issued Tuesday, Boeing representatives said the company would be "taking a series of near-term actions" as the company reviews its options for the future of the high-speed broadband communications business.

Despite the company's fevered promotion of the system, Boeing says "the market for the service has not developed satisfactorily" -- and it is now working with its existing customer base to determine its next steps.

Though in use by several carriers overseas -- including Germany's Lufthansa, El Al of Israel and Japan's All Nippon Airways -- Connexion hasn't taken off in the US. Initially supported by the likes of United, American and Delta in the program's early development stages, Connexion suffered as all three airlines pulled their support of the program in the financial wake of 9/11.

"We're evaluating the long-term business model for Connexion to assess what's best for both the business and our customers," spokesman John Dern told the Associated Press. "The system's performing well, we know we have a useful product, but we're trying to determine how good a business we have."

Boeing isn't commenting yet on the possibility it might disconnect Connexion for good.

FMI: www.connexionbyboeing.com