Boeing Co. said Monday it may sell or shut down its Connexion broadband Internet venture because of insufficient business, confirming reports that surfaced last week.
The aerospace company said it is talking with its airline, defense, maritime, corporate aircraft and general aviation customers as it evaluates the six-year-old business.
"Boeing has pursued the business vigorously, developing technology that has worked well and evolved into a useful product," the company said in a news release. "However, the market for the service has not developed satisfactorily."
A partnering arrangement also is an option, Boeing said. Any changes won't be decided until meetings with customers have taken place.
The possible action involving Connexion first was reported last by week by The Wall Street Journal amid a lack of demand by U.S. airlines for the service.
Connexion allows passengers to have high-speed Internet hookups, via satellite, in flight at a cost of $10 to $27. First announced in April 2000, it suffered a major setback with potential U.S. airline customers after the industry turmoil resulting from the 2001 terrorist attacks.
Lufthansa, Japan Airlines and Singapore Airlines are among the international carriers that offer it, but cash-tight U.S. airlines have been reluctant to pay the cost of outfitting their planes.
Boeing shares rose 50 cents to close at $83.89 on the New York Stock Exchange before the announcement.
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