Boeing is to axe its Connexion in-flight internet service and quit the broadband market, citing lack of interest from the airline industry.
The Connexion by Boeing service was set up to provide satellite-based high-speed internet access to passengers and crews of airplanes and ships.
But the aircraft giant announced that a detailed business and market analysis of its Connexion service – including discussions with existing users and potential new business partners - had led to the decision to close down. Boeing will work with users to facilitate “an orderly phase out”, the company said.
Boeing chief executive Jim McNerney 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 materialised as had been expected.
The shutdown is set to incur pre-tax charges of up to £170m this year. Boeing expects to redeploy most Connexion staff to other jobs at the company.
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