Anyone remember my idea to use airlines as internet links? Well, instead they're putting it into the cabin.
"Available Next Year
CNN, Loral, Alenia, Matsushita, Mitsubishi, CNBC to Participate
NEW YORK and LONDON, April 27 /PRNewswire/ -- The Boeing Company (NYSE: BA) today announced
plans to develop a global communications
network and other services that will revolutionize the way people travel. Called Connexion by Boeing(TM), the
system will provide air travelers with an
unparalleled array of high-speed data communication services via a space-based network -- all for about the same
price as cellular phone service.
Using Connexion by Boeing(TM), commercial airline passengers soon will be able to access the Internet, e-mail,
television, news and information -- essentially
any form of high data-rate communication today's business or leisure travelers require -- in real-time at 40,000 feet.
Intended to extend home- and office-like
connectivity into the skies, Boeing's mobile broadband services will help keep people in touch, even when moving
500 mph. Other applications for Connexion
by Boeing(TM) include corporate and private business jets, U.S. government platforms, and aircraft health
monitoring.
"Boeing intends to be a leader in the new mobile economy -- and that means helping our airline customers and their
passengers stay globally connected at all
times," said Phil Condit, Boeing chairman and chief executive officer. "In commercial air travel today, you have a
few choices -- you can read a book or a
magazine or watch one of several movies. But soon, when you can watch a live soccer match or e-mail family or
shop online or keep an eye on your stocks --
the airplane will begin to look like your home or office and the experience of travel will change."
Boeing has signed memoranda of agreement with: CNN Inflight Services, Atlanta, Ga.; Mitsubishi Electric Corp.,
Tokyo, Japan; Alenia Spazio, a
Finmeccanica Company, Rome, Italy; Loral Skynet(R) of Bedminster, N.J.; Matsushita Avionics Systems Corp.,
Bothell, Wash.; and CNBC, Fort Lee, N.J.
The company currently is negotiating with prospective airline partners, and additional content and service suppliers.
While anticipated revenues for Connexion by Boeing(TM) have not been announced, analysts project the
program's addressable market to be about $70
billion over the next 10 years. Company officials said they hope to capture a significant share of that market with the
venture's unique services.
With Connexion by Boeing(TM), airline passengers will be able to choose from a multitude of personalized
communications services, including Internet and
corporate intranet access, e-commerce, live television and entertainment, transmission and receipt of data,
shopping, travel and destination information -- all in
real time. Airline operators also will benefit from in-flight access to aircraft and crew data.
Digital broadband capability, which provides increased bandwidth -- or a larger "pipeline" -- for two-way
interactive applications, allows customers to send
and receive data at rates equivalent to cable Internet access. To provide the capability to airborne travelers, Boeing
will use advanced antenna technology and
existing satellites, while extending to a mix of new and existing satellites as the service matures.
"Clearly, this is an exciting growth market for Boeing," said Jim Albaugh, president of Boeing Space and
Communications Group. "Commercial information and
communications are areas where we understand the customer, where we bring unique solutions no one else has the
capabilities or resources to provide, and
where we can apply our knowledge of large-scale systems integration to provide mobile users seamless
connectivity," Albaugh said.
The introduction of Connexion by Boeing(TM) follows the pending acquisition of Hughes Space &
Communications and signals the move by Boeing into
commercial, space-based communications markets.
Intended as a global service, initially Connexion by Boeing(TM) will be available to commercial airline customers
operating in North America. Service later will
be expanded to other regions, over ocean areas and onto other moving platforms. The system is already available
for installation on private business jets today
and will be available on commercial aircraft shortly. System installations are expected to begin in late 2001, with
operability expected shortly thereafter.
"Our immediate task is to make these services available to the airlines and the three million airline passengers who
board some 42,300 flights on Boeing-built
planes daily. The system seeks a far broader market," Condit said. "Ultimately we see Connexion by Boeing(TM)
as an enabler for addressing civil and military
information needs, such as air traffic management and integrated military communications."
With headquarters in Seattle, The Boeing Company is the largest aerospace company in the world and the United
States' leading exporter. The company's
capabilities in aerospace include commercial jetliners, military aircraft, rotorcraft, electronic and defense systems,
missiles, rocket engines, launch vehicles, and
advanced information and communication systems. The company has an extensive global reach with customers in
145 countries and manufacturing operations
throughout the United States, Canada and Australia.
Certain statements in this release contain "forward-looking" information that involves risk and uncertainty, including
projections for new business and new
business opportunities, revenues and revenue growth potential, the schedule for bringing the Connexion by
Boeing(TM) into operation, new products, current
and future markets for the Connexion by Boeing(TM) service, and other trend projections.
This forward-looking information is based upon a number of assumptions including: assumptions regarding demand;
current and future markets for the
Connexion by Boeing(TM) services; research, development and certification of equipment critical to the Connexion
by Boeing(TM) system, such as the
antenna; certification by national and international agencies of the radio spectrum usage by Connexion by
Boeing(TM); supplier and subcontractor performance
in delivery of critical equipment and services; industry capacity for installation of Connexion by Boeing(TM)
equipment on aircraft; supplier contract
negotiations; price escalation; government policies and actions; and other regulatory approvals.
Actual future results and trends may differ materially depending on a variety of factors. One of these factors is
whether the Company successfully executes its
internal performance plans, which include meeting goals in the following areas: research and development of antenna
and other critical equipment; performance
of critical equipment; supplier production rates and quality; installation rates on aircraft; supplier contract
negotiations. Other factors are external to Company
performance, and include: acceptance of the new Connexion by Boeing(TM) services by airlines and the public; the
cyclical nature of some of the Company's
businesses; volatility of the market for certain products and services; the degree of domestic and international
competition; uncertainties associated with
regulatory certifications of the Connexion by Boeing(TM) system by the U.S. Government and foreign
governments; other regulatory uncertainties; collective
bargaining labor disputes; performance issues with key suppliers, subcontractors and customers; governmental
export and import policies; factors that result in
significant and prolonged disruption to air travel worldwide; global trade policies; worldwide political stability and
economic conditions, particularly in Asia; real
estate market fluctuations in areas where company facilities are located; price escalation trends; the outcome of
political and legal processes; legal, financial and
governmental risks related to international transactions; legal proceedings; and other economic, political and
technological risks and uncertainties. |
