In-flight Web Access Takes Step Back as Boeing Bails Out

The prospects of surfing the Internet and receiving email at 35,000 feet took a knock on Thursday as Boeing Co. said it will wind down its service for offering Internet access on board planes.

Although the market may get a boost with newcomers LiveTV LLC and AirCell Inc. developing offerings, cost pressures on airlines make it unlikely that on-board Internet access will be widely available soon.

Upgrading an airplane for Internet service is a complex task, and with fuel prices high, airlines are more focused on keeping costs down rather than offering new, expensive perks.

After six years, Boeing scrapped its loss-making Connexion unit, which allowed airlines to provide high-speed Internet service to passengers. The satellite-based service, for which Boeing failed to find a buyer, was too costly, and few airlines signed on.

The company said it would take charges of up to $320 million to wind down the service, which analysts estimate attracted just over 1,000 users a day and cost as much as $150 million a year to run.