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FCC OKs Boeing Net service
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December 27, 2001: 3:56 p.m. ET
'Connexion by Boeing' passes safety tests, cleared for takeoff.
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NEW YORK (CNN/Money) - The Federal Communications Commission on Thursday gave Boeing Co. the go-ahead to provide high-speed Internet access to passengers traveling on its commercial planes.
The approval clears the way for the aerospace outfit to outfit its planes with the equipment that will enable airlines and other commercial jet operators to offer real-time, high-speed Internet and intranet access, television and e-mail above U.S. territory and waters.
Such a service, which the company is calling Connexion by Boeing, would be the first of its kind.
The satellite-based system is one of several Boeing ventures to diversify the company and ease its reliance on its world-leading commercial jet business, which rises and falls with the cyclical fortunes of the airline industry.
The company said tests it conducted showed the Connexion service can operate without causing interference to other spectrum users.
A prototype of the Connexion by Boeing service is currently available to the executive services market in the U.S., which includes operators of private and government aircraft, the company said.
Boeing (BA: up $0.10 to $38.70, Research, Estimates) also said it remains on track with Germany's Lufthansa to equip its long-haul fleet, beginning with a prototype installation in late 2002 or early 2003.
When Boeing first unveiled plans for the Connexion service last June, it had expected financial support from AMR Corp.'s (AMR: down $0.09 to $21.48, Research, Estimates) American Airlines, UAL Corp.'s (UAL: up $0.17 to $12.96, Research, Estimates) United Airlines and Delta Airlines (DAL: up $0.20 to $28.24, Research, Estimates).
But last month, those three companies canceled plans to invest in the service, citing financial difficulties in the wake of the Sept. 11 terrorist attacks against the United States. 
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