Connexion Announces Pricing for High-Speed In-Flight Internet Service

26th Mar 2004

Connexion by Boeing
today announced pricing details for its
high-speed in-flight Internet service scheduled to become commercially
available this spring. Connexion by Boeing has created a model that enables airline passengers
to affordably extend their on-the-ground connectivity experience.  The
result is more choices for how to use their time in the air using either
of two initial pricing plans, which will vary depending on flight

* Flat Rate Pricing Option: (Unlimited access to the Internet)
$29.95 for long-haul flights (more than six hours); $19.95 for
medium-haul flights (between three and six hours); and $14.95 for
flights less than three hours.

* Metered Pricing Option: 30-minute starter package for $9.95 with
rates of $0.25 per minute thereafter.
“This is truly about increasing the connectivity choices for airlines
and their passengers,” explains Connexion by Boeing Vice President of
Marketing and Corporate Sales David Friedman.  “Pricing puts the final
puzzle piece in place for a successful commercial launch that will in
turn revolutionize the way people work, communicate and entertain
themselves while mobile, and really expands the choices they have for
doing so.”

“Our research shows that 38 percent of frequent travelers are willing to
pay at least $25 per flight for full, high-speed access to the Internet
and their corporate network,” said Forrester Research analyst Henry
Harteveldt.  “In-flight broadband Internet access is a highly desirable
amenity, especially among frequent business and leisure airline
travelers.  Airlines that don’t offer passengers this kind of service
risk losing a key segment of their customer base to carriers that do.”

Lufthansa will be the first airline to launch the Connexion by Boeing
service on commercial flights originating from Germany this spring.
Connexion by Boeing also has service agreements with several of the
world’s leading passenger airlines including Scandinavian Airlines
System (SAS), Japan Airlines and ANA.  Singapore Airlines and China
Airlines also have expressed their intent to install the service in
subsequent months.
Unlike narrowband services in the market today, the Connexion by Boeing
service eliminates unexpected surprises by ensuring that business and
leisure travelers won’t have to change their terrestrial habits, count
minutes or compute their kilobytes to gain access to the Internet and
e-mail applications.  Connexion by Boeing is also working directly with
third-party mobile service providers to further simplify the customer
experience and offer them the opportunity to have high-speed Internet
access in planes through their home provider.  As those agreements
solidify, passengers will be able to log onto the Connexion by Boeing
service using the same ID and password they might use in the home or
office and have streamlined billing and customer support.
“We’ve met several significant industry and technology milestones to get
to this point including: gaining international regulatory approvals;
establishing an extensive global ground and satellite network;
conducting successful service trials and securing airline commitments;
and achieved unparalleled technology developments,” added Friedman.  “We
look forward to working with our airline partners to make true in-flight
Internet access an affordable reality.”



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