Loral, Boeing Said to Be in Airborne Net Deal

Loral Space & Communications Ltd., the second-biggest U.S. satellite communications company, was selected by Boeing Co. to provide satellite service for its planned airborne Internet venture, people familiar with the situation said. Boeing is developing a system to let airline passengers access the Internet or watch live television in mid-flight. New York-based Loral would lease access to its existing satellites to help Boeing provide the service. Representatives for Boeing and Loral declined comment. Analysts have said Boeing hopes to roll out the venture in the U.S. by late 2001 and estimated it could eventually generate billions of dollars in sales. Loral would probably be one of several companies in the venture, ranging from content providers to airlines that would install the service. Boeing had planned to make an announcement today but delayed it for several weeks because it expects to sign more companies, a person familiar with the situation said. Boeing would say only that it changed its schedule and expects to make an announcement later. Reports that Boeing tapped Loral for satellite service came after the markets closed. Shares in Loral closed unchanged at $9.44, and Boeing fell $1.25 to close at $36.06, both on the NYSE.