Reuters

Published on ZDNet News: June 23, 2006, 5:08 AM PT

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Boeing on Thursday said it is evaluating the prospects for Connexion, its in-flight Internet venture, but declined to comment on a press report that the company may sell or close the unit.

The Wall Street Journal reported in Thursday`s editions that Boeing may dump Connexion, which has failed to turn a profit in six years.

``The company is evaluating Connexion to assess what`s best for both the business and our customers,`` Boeing spokesman John Dern said.

``We know we have a useful product, but we`re trying to determine how good a business we have,`` he said.

Citing people familiar with the situation, the Journal reported on Thursday that Boeing has queried a number of commercial-satellite operators and other potential suitors who might be interested in buying the business or becoming a major partner.

If a suitable deal could not be reached, Boeing would be prepared to shut Connexion down, even though the service works as advertised and is used by a handful of international airlines on long-haul flights, one of the sources said.

Boeing has not said how much it has invested in Connexion, but people familiar with the situation say it is about $1 billion, according to the Journal.

Some industry officials say the business, because of lack of interest among U.S. airlines in outfitting their fleets with the system, may be worth no more than $150 million, the report said.