American Airlines, Delta Air Lines and United Airlines have withdrawn from Boeing's Connexion in-flight broadband project as the troubled US carriers focus on core activities. The move leaves Boeing with no equity partners in the venture and just one trial airline, Lufthansa, for its on-board e-mail, internet and live television services.
The US carriers became launch customers for Connexion in June, agreeing to equip 500 aircraft each within five years for a stake in the broadband provider (Flight International, 19-25 June).
The deal, which was expected to have been signed by the end of the year, would have made Boeing the major shareholder with overall management responsibility, while the airlines contributed funding, know-how and assets.
The deal was suspended in late November with United saying: "The economic conditions following 11 September have forced the airlines to refocus on higher priority issues and projects." The three carriers remain in Boeing's "working-together" group refining the service.
"We are still very interested in onboard connectivity and will continue to keep abreast of the technology and developments in the area. We will evaluate Boeing along with other suppliers of connectivity when the time comes to move forward in this area," says United.
Lufthansa has yet to firm up its memorandum of understanding - a non-equity standard service deal signed at this year's Paris air show - but Boeing says the German carrier remains a customer and is on course for a three-month single-aircraft trial to start by early 2003. It will then decide whether to equip 80 long-haul aircraft.
Boeing says it remains on track with development and regulatory approval. While airline take-up is slow, Boeing is having more luck with business jet operators, with around a dozen customers in this market.
It is also testing potential security applications, which, it says, are attracting interest. The manufacturer had announced plans to cut its 600 Connexion workforce by a third and is not discounting further reductions.
Source: Flight International