Boeing To Discontinue Connexion By Boeing Service

BoomBoom · Sat Aug 19, 2006 5:46 am

Quoting Wedgetail737 (Reply 3):
I'm sure there are other companies out there that have a higher skill base on high-speed internet

Quote:
Even though Connexion was not able to generate enough airline interest to turn a profit for Boeing, it was a technical success and worked as advertised, using satellites to provide wireless broadband Internet service for those willing to pay to stay connected in the skies.
http://seattlepi.nwsource.com/busine....html

Quoting Singapore_Air (Reply 8):
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?

Quote:
The cost to airline passengers to use Connexion is $10 an hour or $27 for an entire flight. The revenue generated is shared by Boeing and the airline.
http://seattlepi.nwsource.com/busine....html

Quoting JFKLGANYC (Reply 20):
BTW, doesn't Airbus have something also?

Quote:
The technology, developed by Airbus and Sita joint venture OnAir, will allow passengers to make in-flight mobile calls and send text messages on short-haul flights across Europe at a cost of around $2.50 per minute.
http://news.zdnet.com/2100-1035_22-6....html

A 3 hour flight could get quite spendy...

[Edited 2006-08-18 22:47:59]

Derik737 · Sat Aug 19, 2006 7:41 am

Quoting Leelaw (Reply 46):
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 anything else on the horizon that will provide global broadband connectivity," said Tim Farrar, president of satellite-communications consultancy Telecom, Media and Finance (TMF) Associates .

A competing technology may eventually offer full broadband access on passenger laptops on commercial flights within North America. But on flights over the oceans, the prospect is for nothing beyond narrowband voice and text data connectivity — cellphones, e-mail, BlackBerry data.

"I don't see a future for global inflight broadband," Farrar said...

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 program that's going to be flight tested very soon and could offer a 50MB connection? Trust me, there is still definitely a drive to provide global inflight broadband.

Connexion was a failure due to low use and high costs. I personally was presented a quote from Boeing for the equipment and service fees and was dumbfounded after the terms were spelled out. It was definitely a "not interested" response.

hodja · Sat Aug 19, 2006 5:07 pm

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; I've spent so much productive time on board handling emails, researching web sites, working on the company LAN etc. In terms of priorities I'd certainly rate in flight broadband as more important than the meal service or most other service aspects.

2. All these substandard alternatives being mentioned, like mobile phone access dial up when flying over populated areas, or fixed functionality applications (like email) are all useless. We want a full broadband general purpose IP connection with all the flexibility this entails. And we want it on long haul flights where expendable time is abundant.

3. As someone already mentioned, the big problem with using a laptop in the air is lack of space in economy. Most of the time it's simply impossible to fit it on the table in front of you and work in any kind of sensible fashion.

Somehow this feels like Iridium all over again, except that Connexion was actually...

1. Reasonably priced

2. Had good performance

3. Worked really well and completely transparently to the users, using your own standard hardware & software

antares · Sat Aug 19, 2006 5:16 pm

Hodja,

Well put. But there weren't enough of you.

Antares

777ER · Sat Aug 19, 2006 5:44 pm

Is there any other company that sells in-flight internet?

BoomBoom · Tue Aug 22, 2006 2:16 am

Japanese airlines regret Boeing snapping Internet connection

Quote:
Japan's two major airlines have expressed regret after US giant Boeing pulled the plug on in-flight Internet service, which had been a hit mostly with Asian carriers.

"We are disappointed to hear about the forthcoming cessation of Connexion by Boeing's in-flight Internet and e-mail service, as it was well received and enjoyed by customers," All Nippon Airways spokesman Rob Henderson told AFP Monday.

He said 2,400 passengers used the unique service in July, an average of 15 customers per flight, with about 30 passengers surfing on flights to North America.

The airlines said they were still looking at the future of in-flight Internet.

"We are not looking at the moment as there is no alternative to Connexion," said Henderson of All Nippon Airways.

Let's do the math: 15 customers per flight at $27 that's $405. If it cost $500,000 to equip each plane with Connexion it would take only 1,235 flights to recoup that investment, then you could start making a profit. dollarsign

keesje · Tue Aug 22, 2006 4:09 am

Quoting BoomBoom (Reply 55):
If it cost $500,000 to equip each plane with Connexion it would take only 1,235 flights to recoup that investment, then you could start making a profit.

If the broadband connection 40.000ft above the northpole is free, as well as the service provider..

leelaw · Tue Aug 22, 2006 5:25 pm

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 your business than your core product or service, to smooth out the cycles, keep customers loyal, keep competitors at bay or to tap new markets that might offer more growth and better margins than what you're doing now (and to get to those markets before someone else does).

But there's a reason why diversification is far more elegant in theory than in practice -- and why, at its messiest, diversification once earned the epithet "diworsification."

Ask Boeing, which got a $320 million lesson in just how tricky diversification can be to pull off...

"...We will push the boundaries of aerospace, and we will do it with a 'next-square' approach," Condit said. "Imagine a grid with markets on one axis and technology on the other. We want to move only one square at a time on this grid. We want to apply technology that we know well to adjacent markets or technologies and apply them to markets and customers we know well. We do not intend to take new technologies to new markets."

Unfortunately, knowing those technologies, markets and customers is no more assurance of success than taking a flier on a totally unrelated investment -- as Boeing discovered with Connexion...

http://seattlepi.nwsource.com/virgin/282041_virgin22.html

leelaw · Wed Aug 23, 2006 2:23 pm

Korean Air To Seek $12 Million From Boeing For Connexion Expenses

http://atwonline.com/news/story.html?storyID=6164

BandA · Wed Aug 23, 2006 5:22 pm

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...

Also for sending e-mail (even fax/text messages I think) there was no need for laptop, you can do it right from the IFE screen... it was so easy to use!

IMHO it was another excellent product from Boeing.

Indeed I am very much dissapointed by this news... Sad

[Edited 2006-08-23 10:24:09]

StarGoldLHR · Wed Aug 23, 2006 11:36 pm

Quoting Keesje (Reply 45):
Quoting StarGoldLHR (Reply 42):
u belong in the past with all the propjets and spitfires my friend.

No, obviously in the real world..

Quotes after suggest you are wrong.. but as your in Holland you didnt have internet anyway ... only kidding. Big grin

Personally I always used it when I can.. it can be a real useful environment... no one in the office bugging me.. I get work done, escape from rubbish films.. pass hours in the air..

I think Boeing was a victim of time, but soon all planes will have internet.. it is the way of the future.

Laker was the first budget at the wrong time... this is the internet equivalent.

Pieinthesky · Thu Aug 24, 2006 12:20 am

Quoting StarGoldLHR (Reply 60):
Personally I always used it when I can.. it can be a real useful environment... no one in the office bugging me.. I get work done, escape from rubbish films.. pass hours in the air..

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 over answering work myther ANY day (or night !) of the week. Paying all that money to fly in Raffles Class and then spending time in front of a computer screen when I already do that 7 days a week is not my idea of fun.

Flying is virtually the ONLY time I can relax without the chance of being bothered by someone, work or otherwise. God help us if mobile phone use in flight becomes the norm....

leelaw · Fri Aug 25, 2006 2:17 am

Airlines express disappointment over Connexion shutdown, Lufthansa seeks post-December solution

Connexion by Boeing launch customer Lufthansa says it still hopes a "solution" can be found to continue the onboard broadband internat access service, as other airline customers express disappointment over the impending shutdown of services...

http://www.flightglobal.com/Articles...Lufthansa+seeks+post-December.html

OldAeroGuy · Fri Aug 25, 2006 2:31 am

Quoting BoomBoom (Reply 55):
Let's do the math: 15 customers per flight at $27 that's $405. If it cost $500,000 to equip each plane with Connexion it would take only 1,235 flights to recoup that investment, then you could start making a profit.

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 airline was to be customer loyalty to their particular airline.

Rheinbote · Fri Aug 25, 2006 5:51 am

Quoting OldAeroGuy (Reply 63):
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 airline was to be customer loyalty to their particular airline.

Boeing 'concluded' that passengers using an online ticket booking function would likely select their current ride for the next flight as well.

It was my impression that Connexion was to double as a high-bandwitdh air-to-ground datalink for airplane health managament. Makes me wonder how AHM will be affected by the closure of Connexion. No need for high bandwidth anymore?

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