The jet maker, the world’s second largest, first announced Connexion in 2000. At the time, Boeing predicted it would outfit 5,000 jetliners with the service, which would create $3.5bn in revenue for the company. However, just 146 planes ended up with the service.
Over the last six years, we have invested substantial time, resources and technology in Connexion by Boeing, said Boeing chief executive Jim McNerney, in a statement.
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.
The news was not a surprise, following Boeing’s announcement on June 26 that it was reviewing the Connexion business. The Chicago company said its decision to drop the service means it would take a pre-tax charge of as much as $320m, or 26 cents a share, during the second half of the year. In 2007, the move will likely add 15 cents to its profit, according to the plane maker.
The majority of Connexion workers would likely find other jobs within the company, said Boeing.
