Wi-Fi Planet's Eric Griffith reports that Boeing is shutting down its in-flight Wi-Fi service, Connexion by Boeing, after losing $1 billion in the development of the service.

"The company will take a $320 million charge for writing off the shutdown," Griffith writes. "It's a pre-tax charge of 25 cents per share for the rest of the year, but the closure could lift company earnings by 15 cents a share in 2007."

"Regrettably, the market for this service has not materialized as had been expected," says Boeing chairman and CEO Jim McNerney. "We believe this decision best balances the long-term interests of all parties with a stake in Connexion by Boeing."

The service is up and running on planes run by carriers including Singapore Airlines, Japan Airlines, All Nippon Airways, Lufthansa and El Al -- all of which will now be looking for a new provider.

Boeing's press release is here.