Boeing

China Airlines (CAL) and Connexion by Boeing^SM, a business unit of Boeing (NYSE: BA), announced the signing of a Letter of Intent that will bring high-speed connectivity to travelers on commercial flights in and out of Taiwan. The LOI calls for the broadband data and entertainment service to be installed on the CAL long-haul fleet of aircraft beginning in late 2004. Financial terms were not disclosed.

"China Airlines is a clear leader in enhanced passenger service in a market that continues to openly embrace and implement new technologies," said Connexion by Boeing President Scott Carson. "We couldn't think of a better way to celebrate the new year going forward than to proudly announce China Airlines as our newest customer for in-flight mobile connectivity."

"As Internet technology improves, people depend on it more and more in everyday life," said Brian Chou, senior vice president of China Airlines. "China Airlines is proud to be the first airline in Taiwan to introduce in-flight mobile connectivity to better serve the needs of its passengers."

Initially, the agreement with Connexion by Boeing will cover CAL's long-haul fleet including Boeing 747-400 and Airbus A340-300 aircraft, and CAL will extend the service to other aircraft at a later date. The agreement outlines connectivity on certain long-haul flights between Taipei and Europe, and Taipei and North America. Specific routes also will be announced at a later date. In the interim, China Airlines and Connexion by Boeing teams will work together to define the installation schedule and levels of service that will be offered to CAL passengers.

Connexion by Boeing continues to build momentum as it prepares for the introduction of full-scale commercial service in early 2004. Lufthansa, Scandinavian Airlines System (SAS) and Japan Airlines have signed on as customers for the fastest available in-flight Internet, data and entertainment service. Singapore Airlines and All-Nippon Airways also have announced their intent to install the Connexion by Boeing service on their long-haul fleet of jetliners.