777ER From New Zealand, joined Dec 2003, 11350 posts, RR: 17 Posted (6 years 10 months 1 week 1 day 4 hours ago) and read 8269 times:
AIRLINERS.NET CREW FORUM MODERATOR
The Boeing Company today announced that a detailed business and market analysis of Connexion by Boeing is complete, and the company has decided to exit the high-speed broadband communications connectivity markets. Boeing will work with its customers to facilitate an orderly phase out of the Connexion by Boeing service.
"Over the last six years, we have invested substantial time, resources and technology in Connexion by Boeing," said Boeing Chairman, President and CEO Jim McNerney. "Regrettably, the market for this service has not materialized as had been expected. We believe this decision best balances the long-term interests of all parties with a stake in Connexion by Boeing."
Singapore_Air From United Kingdom, joined Nov 2000, 13711 posts, RR: 21 Reply 1, posted (6 years 10 months 1 week 1 day 4 hours ago) and read 8256 times:
Oh WHAT A WASTE!
Pity and for shame!
What a disappointment.
"As initially disclosed in the company's second-quarter 2006 financial results on July 26, Boeing now expects to recognize a pre-tax charge of up to $320 million, or $0.26 per share, in the second half of 2006, of which approximately $290 million will be taken in the third quarter and the balance in the fourth quarter. The company also expects a benefit to earnings of approximately $0.15 per share starting in 2007 without further investment in Connexion. The company will update its financial guidance when it releases third quarter results on October 25."
Wedgetail737 From United States of America, joined Aug 2003, 5566 posts, RR: 5 Reply 3, posted (6 years 10 months 1 week 1 day 4 hours ago) and read 8218 times:
I'm sure there are other companies out there that have a higher skill base on high-speed internet.
Centrair From Japan, joined Jan 2005, 3597 posts, RR: 21 Reply 4, posted (6 years 10 months 1 week 1 day 4 hours ago) and read 8163 times:
It always looked cool but I always felt that such service would be better if it came from a 3rd party who could use it in not only Boeing but all aircraft.
Some company will figure it out...Mitsubishi or Panasonic.
Yes...I am not a KIX fan. Let's Japanese Aviation!
Bnatraveler From United States of America, joined Dec 2003, 380 posts, RR: 3 Reply 5, posted (6 years 10 months 1 week 1 day 4 hours ago) and read 8152 times:
Interesting ... so what happens to LH and KE who are currently using the service?
Rheinbote From Germany, joined May 2006, 1956 posts, RR: 52 Reply 6, posted (6 years 10 months 1 week 1 day 4 hours ago) and read 8084 times:
Quoting Centrair (Reply 4): It always looked cool but I always felt that such service would be better if it came from a 3rd party who could use it in not only Boeing but all aircraft.
Wasn't Connexion inaugurated with a Lufthansa A340?
Singapore_Air From United Kingdom, joined Nov 2000, 13711 posts, RR: 21 Reply 8, posted (6 years 10 months 1 week 1 day 3 hours ago) and read 7938 times:
One of the problems was that it was too cheap.
If you consider that Economy Class has no powerpoints, the vast majority of users are in Raffles and First Class. With their high disposable income and some company-paid trips, they wouldn't miss US$50 to use the internet for the entire flight.
The pricing was too cheap, along with the free trials and US$5 discounts.
Can anyone confirm the rumour on airliners.net previously that Boeing paid for the installation of the equipment, the airlines paid nothing, Boeing got the revenues from the pax and the only opportunity cost for the airlines was the weight penalty of flying the CBB equipment around?
If you consider that Economy Class has no powerpoints, the vast majority of users are in Raffles and First Class. With their high disposable income and some company-paid trips, they wouldn't miss US$50 to use the internet for the entire flight.
The pricing was too cheap, along with the free trials and US$5 discounts.
You have a definite point. I've used the system on LH in business class. It was something like 20 odd US Dollars if I remember correctly. and as I was doing company work and connecting into my emails and the like, I claimed it back as an expense anyway.
I thought at the time the system was really very cheap. I'd expecte dit to be far more expensive.
Just when I thought I could see light at the end of the tunnel, it was some B*****d with a torch bringing me more work
TinkerBelle From , joined Dec 1969, posts, RR: Reply 10, posted (6 years 10 months 1 week 1 day 3 hours ago) and read 7906 times:
Quoting Singapore_Air (Reply 8): If you consider that Economy Class has no powerpoints, the vast majority of users are in Raffles and First Class. With their high disposable income and some company-paid trips, they wouldn't miss US$50 to use the internet for the entire flight.
The pricing was too cheap, along with the free trials and US$5 discounts.
Well, $50 is actually expensive. I'm flying OZ next week and high speed internet on business class in $24.95 I think. That's pretty cheap and will come in handy on a 13-hr flight.
Shame this will end soon although sooner or later, someone will come up with something.
Texdravid From United States of America, joined May 2004, 1266 posts, RR: 0 Reply 13, posted (6 years 10 months 1 week 1 day 2 hours ago) and read 7716 times:
Oh well. At least now I won't have to write emails to LH complaining that their old A340 from IAH to FRA didn't have internet service, unlike the A340/330 from DFW.
Airbazar From United States of America, joined Sep 2003, 6955 posts, RR: 7 Reply 14, posted (6 years 10 months 1 week 1 day 2 hours ago) and read 7677 times:
Too cheap?!?!? It's too expansive, that's what the problem is.
How much do you pay to have AVOD or satelite TV on your seat, in addition to the price of the ticket? So why do passengers have to pay for internet access which is just another form of IFE?
That's what the problem is. The damn thing is too expensive and most people chose not to have it. As result, there isn't enough deman for it.
I'm sure some other company will fill the gap. At the right price there will be demand. I personally preferre internet access to any other form of IFE.
Rheinbote From Germany, joined May 2006, 1956 posts, RR: 52 Reply 15, posted (6 years 10 months 1 week 1 day 2 hours ago) and read 7636 times:
Quoting Singapore_Air (Reply 8): Can anyone confirm the rumour on airliners.net previously that Boeing paid for the installation of the equipment, the airlines paid nothing, Boeing got the revenues from the pax and the only opportunity cost for the airlines was the weight penalty of flying the CBB equipment around?
That's what I understood. OTOH, the latest 787 Airplanes Description and Selections doc quoted an optional $500K for Connexion. Looks they were changing their minds more than once lately.
Longhaulheavy From United States of America, joined Dec 2003, 402 posts, RR: 2 Reply 16, posted (6 years 10 months 1 week 1 day 2 hours ago) and read 7632 times:
Damn. It was such a good system. Hopefully Boeing will try to recoup some costs by selling off the entire operational package to a company that wants to give it another go.
Singapore_Air From United Kingdom, joined Nov 2000, 13711 posts, RR: 21 Reply 18, posted (6 years 10 months 1 week 1 day 1 hour ago) and read 7489 times:
Quoting Airbazar (Reply 14): Too cheap?!?!? It's too expansive, that's what the problem is.
I still maintain that in the airline industry's present form, with no power points for laptops in Economy Class, not to mention the sheer cramped-ness of it, US$50 would still be in the leeway range of the premium traveller when one considers Live TV, the ability to e-mail etc... which can be done on the internet. The elasticity can't be that great.
United787 From United States of America, joined May 2005, 2352 posts, RR: 1 Reply 19, posted (6 years 10 months 1 week 1 day 1 hour ago) and read 7480 times:
What a huge disappointment. I think it is foolish to end it now, just when US airlines are starting to turn a profit. I could see United, American and Continental offering this soon. I think Boeing should wait a little longer. Talk about shooting yourself in the foot.
JFKLGANYC From United States of America, joined Jan 2004, 2706 posts, RR: 5 Reply 20, posted (6 years 10 months 1 week 1 day 1 hour ago) and read 7480 times:
Another 9/11 victim.
When this project came out 6 years ago, US carriers were expected to buy into it. The majors just couldn't afford the expense over the past 5 years and the probably can't afford it now.
It's a great idea . . . with bad timing! Timing is everything.
Nighthawk From UK - Scotland, joined Sep 2001, 4993 posts, RR: 38 Reply 21, posted (6 years 10 months 1 week 1 day 1 hour ago) and read 7447 times:
Quoting 777ER (Thread starter): Boeing will work with its customers to facilitate an orderly phase out of the Connexion by Boeing service.
Does this mean that all airlines that have fitted the service must now remove it? If so i can see a few airlines being angry at this move. It certainly does suggest Boeing paid for the installation, if Lufthansa had paid then there really would be a big row about Boeing turning the system off!
Stitch From United States of America, joined Jul 2005, 26962 posts, RR: 83 Reply 22, posted (6 years 10 months 1 week 1 day 1 hour ago) and read 7437 times:
Since the system's infrastructure is still there, the carriers who use it might decide to just buy the equipment from Boeing and carry-on.
Mham001 From United States of America, joined Feb 2005, 3017 posts, RR: 2 Reply 23, posted (6 years 10 months 1 week 1 day 1 hour ago) and read 7411 times:
Are they even allowing computers on planes now? Will they in the future? It could be a very timely exit anyway.
Singapore_Air From United Kingdom, joined Nov 2000, 13711 posts, RR: 21 Reply 24, posted (6 years 10 months 1 week 1 day 1 hour ago) and read 7384 times:
The jetmaker had lost about $1 billion in the venture, Paul Nisbet, an analyst at JSA Research in Newport, Rhode Island, said in June.
``It may be over for Boeing, but that doesn't mean the service itself is necessarily a thing of the past,'' said Michael Lamberty, a spokesman in Frankfurt for Cologne, Germany-based Lufthansa. ``We're hoping to still be able to offer it to our passengers, whether it's from Boeing or someone else.''
25 Outlier: Sometimes trying to obey the forum rules is very difficult
26 Salina Chan: Well, maybe with the idea of introducing mobile phones (hmmm, is that still considered after 8/11?) someone realized that you can not make a lot of mo
28 Airbazar: I don't see what power ports have to do with it. The average laptop battery these days has 3+ hours worth of of juice. I don't surf the web that long
29 Ken777: I can remember seeing the system used in the early days - in a story about an Apple exec having a video "conference" with a friend back in the home of
30 LY4XELD: Not necessarily...a phase out doesn't necessarily mean that there won't be any internet. It means that Connexion by Boeing won't be the provider. The
31 Antares: Being first in business can be a bitch. You do all the work and others come along and do it better. My grandson had a magazine with an article about h
32 United787: Doesn't this system work from Boeing Satellites? If Boeing discontinues service, who would be able to provide the service to the airlines that alread
33 Keesje: I told a Boeing Connexion sales team 6 years ago passenger research showed eating, sleeping & watching nice movies / magazins were about the favourite
34 AeroWeanie: These humps will soon be history: I'm glad I didn't pour $1b into this. Oh, I forgot, I own Boeing stock - I did pour money into it!
35 Goodbye: What a shame you weren't part of the "detailed business and market analysis" Boeing undertook. I'm sure you would have made them change their mind. I
36 Halaka: I have to wonder if the ever-increasing threat of allowing/encouraging cell phone use onboard is what signaled the death knell for Connexion? Seems li
37 Avbooks: What good is a wireless connection on board if you can't take your laptop into the cabin anymore?[Edited 2006-08-18 05:18:21]
38 Mham001: Good question. If nothing else, maybe we'll get Outlier to break a few rules..
39 AeroWeanie: This would have helped Connexion By Boeing (CBB). CBB is broadband - it was going to carry Internet, phone and TV. An interesting twist that I just t
40 GBan: Connexion is available on Airbus aircraft as well. It is not possible to do VoIP with Connexion. There is not enough upstream bandwidth.
41 A380Man: Connexion is available for any aircraft, which has enough room on its top fuselage to accomodate the satellite MOD. I've seen it on both Airbus and B
42 StarGoldLHR: Rubbish.. Lufthansa charges $29 for the entire flight. I will pay $29 for the value of being able to work during my flight, but when my hotel charges
43 Leelaw: Actually, I think that was me: WSJ: Boeing Considering Selling/Closing Connexion (by Leelaw Jun 22 2006 in Civil Aviation)#ID2838821 From Jim Wallace
44 Leelaw: Apparently, Bushie prefers to sleep or enjoys the IFE when on Air Force One?
45 Keesje: right! No, obviously in the real world.. Real time connections proved not worth the money. The place you left / are flying to is mostly in a differen
46 Leelaw: From Dominic Gates/Seattle Times (Fair Use Excerpts): High-tech business strategy dies with Boeing's flying Web service "...I don't think there's anyt
47 Aerosol: No - it was introduced on D-ABTE (744) on the FRA-Washington route!
48 Aither: http://www.onair.aero/en/index_en.asp But it is a less high tech system i believe.
49 Keesje: Boeing takes charges of up to $320m in the second half for ending Connexion. You have to sell a lot of aircraft with healthy margins to compensate thi
51 Derik737: Oh, these consultants. Hmm, what about row44.com? What about Immarsat's ever-increasing satellite speed? What about a really cool node in the sky pro
52 Hodja: I can't figure out whether it was simply the timing or the execution that went wrong. A few facts: 1. In flight broadband access is a *great* feature;
53 Antares: Hodja, Well put. But there weren't enough of you. Antares
54 777ER: Is there any other company that sells in-flight internet?
55 BoomBoom: Japanese airlines regret Boeing snapping Internet connection Let's do the math: 15 customers per flight at $27 that's $405. If it cost $500,000 to equ
56 Keesje: If the broadband connection 40.000ft above the northpole is free, as well as the service provider..
57 Leelaw: It's not easy to diversify -- just ask Boeing By BILL VIRGIN P-I COLUMNIST It's such a great theory -- in theory anyway. You want something more to yo
58 Leelaw: Korean Air To Seek $12 Million From Boeing For Connexion Expenses http://atwonline.com/news/story.html?storyID=6164
59 BandA: OH #($**#( That really sucks, I really enjoyed CBB on my recent Asiana flight... I sure hope someone else takes over the service and contiues on... Al
60 StarGoldLHR: Quotes after suggest you are wrong.. but as your in Holland you didnt have internet anyway ... only kidding. Personally I always used it when I can..
61 Pieinthesky: I disagree. I've flown many SQ flights with Connexion and have never used it once, even when give a card for free access. Give me Wisemen 3000 IFE ov
62 Leelaw: Airlines express disappointment over Connexion shutdown, Lufthansa seeks post-December solution Connexion by Boeing launch customer Lufthansa says it
63 OldAeroGuy: From a Boeing business case review I saw once, the service itself was not expected to be porfitable or only marginally so. The main carrot to the air
64 Rheinbote: Boeing 'concluded' that passengers using an online ticket booking function would likely select their current ride for the next flight as well. It was
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