Boeing Co. said Thursday it’s closing down Irvine-based Connexion by Boeing, the company’s struggling in-flight Internet service for airlines.
The unit employs about 150 people in Irvine.
The company said it plans to take a $320 million charge for the shutdown, most of it in the current quarter. Beyond that, the closure should help profits, Boeing said.
Boeing said in June it was looking to sell, discontinue or find a partner for Connexion.
The move ends an ambitious bid by Boeing to provide Internet service to planes via satellites, a move many now see as costly with competing services from wireless telecommunications companies.
Connexion counts a handful of customers that use the service on international flights, including Germany’s Lufthansa, Japan Airlines, Korean Air and China Airlines. No major U.S. airline customers use the service.
“Regrettably, the market for this service has not materialized as had been expected,” Chief Executive Jim McNerney said. “We believe this decision best balances the long-term interests of all parties with a stake in Connexion by Boeing.”
Connexion’s service started in 2004. Boeing charged $27 for an entire long-haul flight or $9.95 for the first hour.
Boeing has spent an estimated $1 billion on the operation.
