By Darren Shannon in Washington DC
Boeing is currently determining the viability of its Connexion by Boeing onboard internet service provider unit, with the possibility of a sale being considered.
In an interview to be published in next week's Flight International magazine, Boeing chief executive Jim McNerney says the study is not questioning the technology produced by Connexion by Boeing, but the business case for maintaining the unit.
“I think Connexion is a good product. I don’t know how good the business is,” says McNerney.
“We are going through an examination now to try to understand the short-term investment versus the long-term benefit. But it’s a good product and it has good customer acceptance even though it’s gone a little more slowly that we had originally planned.”
| Related blogs |
| Blogging from 25,000ft This blog so very nearly coming via Connexion by Boeing Jetblue in the goldfish bowl |
These comments come as AirCell celebrates winning the US Federal Communications Commission auction for exclusive rights to provide air to ground broadband access.
Connexion did not make a formal bid for the 4MHz spectrum in the 800MHz band now allocated to AirCell.
Although McNerney is saying no more on Boeing’s study of Connexion, the Wall Street Journal reported yesterday that the US manufacturer is in talks to sell the division. The unit shows no sign of becoming profitable six years after launch, the financial daily reported.
One notable company is Luxembourg’s SES Global, a major satellite services company of which GE Capital owns 20%.
The article also says Connexion may be shut down if a buyer cannot be found. However, it does not say what will happen with Connexion systems already in operation at airlines including Lufthansa and Singapore Airlines.
Boeing, reiterating McNerney’s comments, will only say the unit’s future is being evaluated. Connexion was not available for comment.
Source: Flight International
