In-flight web surfing takes a step back

The prospects of surfing the internet and receiving e-mail at 35,000 feet took a knock on Thursday as Boeing said it will wind down its service for offering internet access on board planes. Although the market may get a boost with newcomers LiveTV LLC and AirCell developing offerings, cost pressures on airlines make it unlikely that on-board internet access will be widely available soon. Upgrading an airplane for internet service is a complex task, and with fuel prices high, airlines are more focused on keeping costs down rather than offering new, expensive perks. After six years, Boeing said on Thursday it would shut down its loss-making Connexion unit, which allowed airlines to provide high-speed internet service to passengers. The satellite-based service, for which Boeing failed to find a buyer, was too costly, and few airlines signed on. The company said it would take charges of up to USD 320m (EUR 249m) to wind down the service, which analysts estimate attracted just over 1,000 users a day and cost as much as USD 150m (EUR 116m) a year to run. (Reuters,August 18, 2006)

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