Rockwell to End In-Flight Network Venture With News Corp.

Rockwell International Corp. said Wednesday it will stop investing in the company’s In-Flight Network joint venture with News Corp. because no airlines have signed up for the live television and Internet-access service. The maker of automated controls and aerospace equipment will take a $16-million charge in the fiscal second quarter to write off its investment, spokesman Don McGrath said.

News Corp., one of the largest media companies, and Rockwell pledged to invest hundreds of millions of dollars in the venture when it was formed last year. Rivals for in-flight entertainment business such as Boeing Co. also are slow in signing up customers because airlines are demanding greater control over revenue.

“Rockwell needs to choose its competitors wisely and Boeing wouldn’t be a wise choice” because of the plane maker’s relationships with airlines, said Chris Braig, an analyst with Cleveland-based National City Corp., which owned about 375,834 Rockwell shares.

Andrew Butcher, a spokesman for News Corp., wasn’t available for comment.

Programs were to be broadcast on screens installed in seat backs or pulled from under armrests. Passengers with laptop computers or personal organizers would be able to log on to the Internet and check e-mail through conventional modems or a wireless connection.

The companies said in March 2000 that it expected to install the first In-Flight Network system by the end of the year. Rockwell has invested $6 million in the venture, McGrath said.

The shares of Milwaukee-based Rockwell rose $1.30 to close at $37.85 on the New York Stock Exchange. News Corp. American depositary receipts fell 8 cents to close at $28.70, also on the NYSE.

Rockwell also said profit from operations in the quarter ended March 31 was in line with the 75-cent-a-share average forecast of analysts surveyed by First Call/Thomson Financial.