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Airbus Takes Sides in Net Dogfight

By Dominic Gates
06.14.2001
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to passengers in airports as well as onboard the aircraft. In conjunction with Telia, SAS is setting up a trial in the fourth quarter of this year that will give wireless access to Tenzing's service both on board its planes and in its airports.

Boeing dismisses the Tenzing narrowband solution and insists on the need for a robust, tested service powerful enough for business needs. "I'm concerned about Tenzing as a competitor," said Scott Carson, president of Boeing's Connexion unit. "I'm more concerned about an inferior service."

Airbus' investment "will create deeper pockets," Carson said, "but over the long haul Tenzing won't be competitive. If they convert to a broadband system, they'll have development time just like us. And we have first-mover advantage."

Tenzing, though, sees first-mover advantage in getting into the market now, not next year.

"Tenzing can do everything Boeing can do," said Alex McGowan, Tenzing's senior director of marketing. He said there'll be a clear migration path for airline customers to upgrade to broadband when it becomes available. "In the meantime, we offer airlines the opportunity to start now."

Tenzing had relocated from Sydney to Seattle in June 1999, in part to be close to Boeing as the leader of the aviation industry. At the end of this summer, Boeing is moving its headquarters from Seattle to Chicago. But if passenger reaction to Tenzing's interim narrowband service is positive, the leading Internet-in-the-sky service could turn out to be Seattle-based after all.