Boeing evaluating in-flight Internet

CHICAGO - Boeing Co. on Thursday said it is evaluating the prospects for

Connexion, its in-flight Internet venture, but declined to comment on a press

report that the company may sell or close the unit.






The Wall Street Journal reported in Thursday's editions that Boeing may dump
Connexion, which has failed to turn a profit in six years.






"The company is evaluating Connexion to assess what's best for both the business
and our customers," Boeing spokesman John Dern said.






"We know we have a useful product, but we're trying to determine how good a
business we have," he said.






Citing people familiar with the situation, the Journal reported on Thursday that
Boeing has queried a number of commercial-satellite operators and other

potential suitors who might be interested in buying the business or becoming a

major partner.






If a suitable deal could not be reached, Boeing would be prepared to shut
Connexion down, even though the service works as advertised and is used by a

handful of international airlines on long-haul flights, one of the sources said.






Boeing has not said how much it has invested in Connexion, but people familiar
with the situation say it is about $1 billion, according to the Journal.






Some industry officials say the business, because of lack of interest among U.S.
airlines in outfitting their fleets with the system, may be worth no more than

$150 million, the report said.






(Additional reporting by Herbert Lash)