First-of-Its-Kind Service to Offer Customers Real-Time, Affordable Access for Less Than $30 per International Flight; Leading Airlines Prepare for Rollout
Connexion by BoeingSM, a business unit of The Boeing Company [NYSE:BA], 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 length:
- 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.
The pricing is based on extensive customer research conducted individually and in conjunction with leading airlines in Europe, Asia and the U.S. and is intended to be affordable for all travelers seeking secure, reliable access to the people and information that are important to them. Connexion by Boeing SM , which provides a broadband connection to the aircraft, is the only Internet service that offers users a high-speed, real-time experience comparable to the one they currently enjoy at the office or at home, including unrestricted virtual private network (VPN) access to personal and work-related e-mail accounts and intranets, as well as entertainment applications and an in-flight portal for customer service and support.
"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."
About Connexion by Boeing
Connexion by Boeing, recipient of the 2003 World Travel Award for World's Leading High-Speed In-flight Internet Services Provider, brings high-speed Internet, data and entertainment connectivity to travelers. Connexion by Boeing also offers a high-speed connectivity solution for the business aviation market and has announced plans to enter the maritime market. For information about the Connexion by Boeing service, please visit www.connexionbyboeing.com.
Forward-Looking Information is Subject to Risk and Uncertainty
Some of the statements in this news release constitute "forward-looking statements" that do not directly or exclusively relate to historical facts. These forward-looking statements reflect our intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside our control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Because actual results could differ materially from our intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this news release with caution.