Boeing Connexion service fails to take off

At $29.95 per flight, consumers have complained about the price of Boeing's Connexion service

Airplane maker Boeing is " re-evaluating" its Connexion in-flight Wi-Fi service owing to disappointing results, and has put future expansion of the service on hold.

The re-evaluation could lead to a sale of the Connexion group, a partnership or even a termination of the service.

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

Consumers have complained about the price tag, but Connexion typically countered those complaints by arguing that it represents a small fee for enterprises if it makes their employees more productive.

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

The service currently offers speeds of up to 4Mbps downstream and 1Mbps upstream for all users combined, but these can be increased as user adoption grows.

In related news, US telecoms provider Verizon last week axed its Airfone service that allowed passengers to place phone calls from about 1,000 airplanes operated by several US carriers.

The decision will not affect the 3,400 corporate and government planes that have signed up for the service.

Airfone has been available for 20 years but failed to take off owing to calling rates of up to $4.99 per minute.