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Boeing Mulls Sale of Connexion Business |
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CHICAGO, June 27, 2006/Satnews Daily/ — Boeing said on Monday it will be taking a series of near-term actions as the company accelerates the evaluation of options for the future of its Connexion by Boeing high-speed broadband communications business.
Reports say Boeing was considering a sale of the slow-growing unit because only a handful of airlines have installed the Connexion service as U.S. carriers are opting for the cheaper, cellular network-based Internet services.
Boeing said it has pursued the business vigorously, developing technology that has worked well and evolved into a useful product. But it admits the market for the service has not developed satisfactorily. Boeing said it will now be working in conjunction with customers to thoroughly evaluate the Connexion marketplace and business model to determine next steps.
Sources say Boeing was considering selling the business, working with a partner or terminating the service altogether, and would announce its plans after talking with customers.
Meetings are being scheduled with customers across all Connexion business channels--including airline, defense, maritime, corporate aircraft and general aviation--to assess the current state of the market and develop plans that address market conditions. In the meantime, Boeing said it will limit further commercial expansion of the service.
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