Connexion by Boeing grounded indefinitely

The market for Connexion by Boeing 'has not materialised'

Boeing has confirmed that it is shutting down its Connexion in-flight broadband service. The company announced in June that it was reviewing the service. 

"Over the past six years we have invested substantial time, resources and technology in Connexion by Boeing," said chairman, president and chief executive Jim McNerney.

"Regrettably, the market for this service has not materialised as had been expected. We believe this decision best balances the long-term interests of all parties with a stake in Connexion by Boeing."

The company anticipates that the majority of employees working on Connexion will find work in other departments. Shutting down the service will cost the company $320m.

Connexion by Boeing offered a wireless service onboard 72 long-haul planes for a total of 12 carriers including Lufthansa, SAS and Austrian Airlines. Passengers were charged a fee of up to $29.95, depending on flight time. 

Consumers complained about the price tag, but Boeing typically argued that it represents a small fee for enterprises if it makes their employees more productive.

The technology used several Wi-Fi access points inside the aircraft to create a wireless network, with the signal transmitted back to earth via satellite.

The service offered speeds of up to 4Mbps downstream and 1Mbps upstream for all users combined.