Panasonic's In-Flight Broadband Service Misses Its Connexion

from the delayed dept

Fri, Dec 22nd 2006 8:37am — Carlo Longino

After Boeing announced several months ago that it was shutting down its Connexion in-flight broadband service, a Panasonic unit said it would fill the gap. It said it wouldn't take over Connexion, but had a new and better service, and that it would be easy for airlines to switch their Connexion-enabled planes to it. However, with the shutdown of Connexion looming in the next few days, it looks like the Panasonic system is still grounded, because the company, its partners and airlines still can't agree on a deal. It's rather fitting that the holdup here is a commercial, not a technical one. Connexion proved that a decent in-flight broadband service was technically possible, and that's no longer a question. But despite all the apparent interest in such a service, it failed to catch on. Pricing may have been too high for most people, or perhaps the many surveys saying people really want to surf while they fly were just wrong. The economics of the airline industry don't help, either, and with airlines just getting back on their feet after several lean years, they're still hesitant to shell out the costs of wiring their planes for access. Forthcoming air-to-ground services may offer some cost savings over satellite-based systems for flights over North America, but that's still only part of the issue: are enough people willing to pay for in-flight broadband to support the service?

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11 Comments

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dorpus, 22 Dec 2006 @ 9:15am

Inelastic supply curve
Flights between the Western World and Asia remain the most lucrative segment of the global airline industry, and internet or not, there are only so many flights.

Despite all the talk of the internet bringing prices down, the internet has had zero effect on the prices of long flights to Asia. All the cheap-tickets.com sites conspicuously lack Asian flight destinations; when Asian destinations appear at all, they are at jacked-up prices. Just as before, getting the rare cheap ticket to Asia remains an art of knowing the right people and staying on their good side.
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redhammy, 22 Dec 2006 @ 10:35am

Problem not with end-users
I think the problem isn't that customers don't want in-flight broadband. Instead, the problem is that it is very expensive to outfit a plane with the technology, and the airlines don't want to pay for it. There aren't many customers for the service because it just isn't offered to many customers.
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Paul, 22 Dec 2006 @ 11:02am

Price
They asked the wrong question on the survey.
Instead of "would you like internet access on your flight?" it should have been: "Are you willing to pay an expensive price for mediocre internet access on your flight?"
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achso, 22 Dec 2006 @ 11:10am

good while it lasted
I thought the service on LH worked well...it was a bit pricey, but 10 bux for an hour of entertainment from the 11h flight wasn't soo bad...plus you could always alert the folks picking you up about how late you would be...
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- kneeL, 22 Dec 2006 @ 11:22am
  
  Re: good while it lasted
  10 bux an hour for an 11 hour flight, someone here said. That's $110 for less than half a day's worth of probably shotty-at-best internet access? No thanks, I'll play my DS on the flight and wait until we land to connect :)
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Lawrence Sinclair, 22 Dec 2006 @ 11:29am

It was a bargain
It costs something like $25 to turn a 14 hour+ economy class flight from New York to Tokyo from an uncomfortable and isolated ordeal into something a quite a bit more endurable. I was able to IM chat with friends (without bothering any of my fellow passengers), surf the web to plan what to do at my destination. I could have traded stocks or gambled, if I was so inclined.
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Buck, 22 Dec 2006 @ 11:40am

Can We?
Can we maybe try to stop 'acting cute' with the news headlines? I understand what it takes to be a "journalist" for a WEBSITE, but that doesn't mean you need to try and make the worst jokes on the planet from the headlines. We aren't looking for a laugh, we're looking for news.

Personally, this is the last time I click on some damn link where the author is so full of himself that he actually thinks that crap is amusing.
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- Anonymous Coward, 22 Dec 2006 @ 12:08pm
  
  Re: Can We?
  Being a bit testy aren't we? Do you need a nap or your baba?
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  - Gunther, 22 Dec 2006 @ 12:11pm
    
    Re: Re: Can We?
    We all want people like you to die around this time of year.
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Anon Pussy, 22 Dec 2006 @ 12:12pm

Pussy
Only pussies post Anonymously
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Ayman Zeibak, 9 Nov 2009 @ 1:23pm

IN flight internet
it is the most importatant services that AIRLINES can offer , we enjoyed using the internet while flying when it used to be wih LUFTHANSA , befor BOEING decided to shut down their serivces .
I am looking for a strong company who can provide internet services during flight and ready to go on profit sharing business at any time .
we have a huge demand and interestedbusiness customers to useit , price has to be reasonble and guarantee speed .

regard,

Ayman Zeibak

IT, TELECOM company
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