Connexion by Boeing, Boeing Co.’s Irvine-based in-flight Internet unit, could be sold or shut down, according to a report in the Wall Street Journal Thursday.
Boeing has “reached out” to a number of suitors, including satellite operators, to buy or invest in Connexion, the report said, citing people familiar with the matter.
If Boeing can’t find a deal for Connexion, the aerospace company is willing to close the operation, the article said.
Connexion offers airline passengers access to the Internet during flights with satellite technology, a business that has held more promise than results.
Boeing has spent an estimated $1 billion on the operations, the article said. Connexion may be worth $150 million, the story said.
The company has failed to pick up more than a handful of international carriers.
Meanwhile, Verizon Communications Inc. and other wireless carriers have emerged as a potential competitor for U.S.-based airlines.
The wireless companies can tap their vast tower networks to provide cheaper, dependable online access during flights over the U.S.
Boeing has said the business was hurt by the downturn in the airline industry after Sept. 11, 2001.
No decision is imminent, but Boeing’s chief executive, Jim McNerney, has said the company is considering what to do with Connexion.
