Boeing to pay $70m to end SES Americom contract

10 Oct 2006
00:00

(Satellite News via NewsEdge) Boeing Co. will pay SES Americom $70 million as part of the shutdown of the Connexion By Boeing inflight Internet service. Boeing is using SES Americom's AMC-23 satellite to provide the service over the Pacific Ocean.

SES Americom will recognize about $49 million of the payment as revenue in the third quarter, and the remaining $21 million in the fourth quarter.

Boeing also terminated services on the AMC-6 satellite in August.

Boeing will close Connexion at the end of 2006. The company is believed to have lost about $1 billion on Connexion, and will take a $350-million charge to shut down the service.

© 2006 Access Intelligence, LLC

© 2006 Dialog, a Thomson business. All rights reserved

Related content

Comments
No Comments Yet! Be the first to share what you think!