View Single Post
  #10  
Old August 17th 06, 03:29 PM posted to rec.aviation.piloting
Larry Dighera
external usenet poster
 
Posts: 3,953
Default Who needs terrorists when we have Dell?

On Wed, 16 Aug 2006 12:43:46 GMT, "Jim Carter"
wrote in 004101c6c131$99807a10$4001a8c0@omnibook6100:

Since laptops are once again allowed onboard as checked luggage, I
wonder if the airlines are going to start checking battery models and
revision numbers (bet not).


It would seem this requirement to check laptop computers rather than
making them available for use in the cabin has cost Boeing a bundle
not to mention the jobs lost:

------------------------------
The Boeing Company http://www.boeing.com/news/releases/index.html

Boeing to Discontinue Connexion by Boeing Service

* Previously announced charge to earnings now expected to be up to
$320 million

* Earnings benefit of approximately $0.15 per share expected
beginning in 2007

CHICAGO, Aug. 17, 2006 -- The Boeing Company [NYSE: BA] today
announced that a detailed business and market analysis of Connexion by
Boeing is complete, and the company has decided to exit the high-speed
broadband communications connectivity markets. Boeing will work with
its customers to facilitate an orderly phase out of the Connexion by
Boeing service.

"Over the last six years, we have invested substantial time, resources
and technology in Connexion by Boeing," said Boeing Chairman,
President and CEO Jim McNerney. "Regrettably, the market for this
service has not materialized as had been expected. We believe this
decision best balances the long-term interests of all parties with a
stake in Connexion by Boeing."

As initially disclosed in the company's second-quarter 2006 financial
results on July 26, Boeing now expects to recognize a pre-tax charge
of up to $320 million, or $0.26 per share, in the second half of 2006,
of which approximately $290 million will be taken in the third quarter
and the balance in the fourth quarter. The company also expects a
benefit to earnings of approximately $0.15 per share starting in 2007
without further investment in Connexion. The company will update its
financial guidance when it releases third quarter results on October
25.

The charge relates to writing down certain assets, payments of early
termination fees and other costs related to shutting down the service.
Boeing expects the majority of Connexion employees will find other
jobs within the company.

Boeing acknowledged it was reviewing the Connexion business on June
26. This effort included an assessment of the market and discussions
with existing customers and potential new business partners.