Some three months after an enthusiastic announcement, cabin-entertainment specialist Airshow of Tustin, Calif., and low-cost satellite data provider GlobalStar have halted development of high-speed airborne Internet services in light of GlobalStar’s increasingly desperate financial situation. An Airshow spokesman said it is unlikely that a GlobalStar-based airborne datalink service can be brought to market “at this time,” adding, “Whether or not it can become a marketable, for-sale product, we’ll know in the future, but this decision delays the program by at least a year.” He said Airshow is backing away from the program because of the uncertainty of GlobalStar, “but we want our customers to know that airborne Internet connectivity is still a key part of our strategy.” Qualcomm, an early partner with Airshow in the GlobalStar venture, recently retracted an offer to become the chief investor in a plan to rescue the ailing satellite telephone firm. GlobalStar had only $197 million in cash at the end of last year after losing $216 million and is now scrambling for another major source of funding. GlobalStar has said it will seek bankruptcy protection if reorganization plans fall through.
Airshow, GlobalStar Scrap Plans for Airborne Web Link
- May 9, 2008, 5:33 AM