Boeing in-flight Net service gets boost

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Boeing in-flight Net service gets boost

SEATTLE (Reuters) =97 Boeing Thursday said it signed British Airways as a=20
second trial customer for its Connexion in-flight Internet service, the=20
first good news for the program since the Sept. 11 attacks. British Air,=20
Europe's largest carrier, joins German flag carrier Deutsche Lufthansa in=20
trials with Connexion, which lost three major U.S. airline investors and=20
slashed its workforce after the attacks sent airlines into survival mode.=20
Connexion President Scott Carson said air travelers' demand for the=20
high-speed service would grow once they begin to see it, pressuring other=20
airlines to follow suit or lose passengers who need to stay connected.=20
"There is no doubt in my mind," Carson told reporters aboard a parked=20
Boeing 737 jetliner outfitted to demonstrate Connexion at the company's=20
narrow-body jet delivery facility in Seattle. British Air and Lufthansa=20
will each offer the service on one Boeing 747-400 during three-month trials=
=20
in early 2003. Boeing plans to formally launch the service in 2004.
BA's director of marketing, Martin George, said research showed that 75% of=
=20
its business-class travelers carry laptop computers to their seats when=20
they fly.

Ultimately Carson hopes to install Connexion on about 4,000 jets =97 about a=
=20
third of the world's commercial fleet =97 over the next 10 years, bringing=
 in=20
$3 billion to $5 billion in annual revenues. During the demonstration,=20
e-mails sent via satellite through a roof-mounted antenna reached their=20
addressees moments later while the laptop computer also showed a delayed=20
video news feed from the CNN network. But an attempt to demonstrate the=20
service via a handheld personal digital assistant using a wireless modem=20
failed, prompting a message indicating an incompatible Web browser and=20
offering options for downloading a new one.
British Air will likely charge 20 to 30 pounds ($29.40 to $44.10) per=20
flight segment to use the service during the trial, Boeing said, while U.S.=
=20
customers would likely charge $20 to $30 per flight segment, Carson said.=20
For that price customers would get Internet access and a variety of options=
=20
for video entertainment. Were the full service available today, it might=20
show taped World Cup soccer games, for example.

Airlines would pay Boeing a one-time fee to install the 600 pounds of=20
hardware needed to run the service and would share some of the passenger=20
revenues with Connexion, which leases bandwidth from satellite=20
communications providers. The top three U.S. airlines =97 AMR unit American=
=20
Airlines, UAL's United Airlines and Delta Air Lines =97 abandoned an=20
investment in Connexion last fall, but may still take the service, Boeing=20
said. Connexion's main rival, Seattle-based Tenzing Communications, has=20
also cut jobs and delayed some customer rollouts of its narrow-band service=
=20
as airlines fight back a sea of red ink amid shrinking passenger flows.=20
Boeing rival Airbus, held jointly by European Aeronautic Defence and Space=
=20
(EADS), with an 80% stake, and Britain's BAE Systems, owns 30% of Tenzing.



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