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To: Maurice Winn who wrote (16641)	9/9/2000 7:31:37 PM
From: WR	Respond to of 29987

Airlines want cut of Net profit by Peter Robison Bloomberg News Boeing said it might take longer than expected to sign the first airline customers for an in-flight Internet access service it proposes to put in operation by late next year. The Wall Street Journal reported yesterday that talks have slowed as airlines demand more of the proceeds from services planned by Boeing and a venture led by News Corp. The airlines want larger equity stakes and more favorable profit-sharing arrangements, the paper said, citing carriers including American Airlines and Deutsche Lufthansa. When Boeing announced the venture in April, James Albaugh, president of Boeing's space-and-communications division, said Boeing hoped to sign airlines by summer in North America. Boeing spokesman Terrance Scott said yesterday that the company aims for an announcement later this year and "if we have to extend that timetable to allow analysis and such on both parts, we're willing to do that." The services developed by Boeing and the News Corp. venture would use satellite links to allow airline passengers to search the Internet, get e-mail and watch television in flight. The companies are competing with start-up ventures such as Tenzing Communications and Inflightonline.com, which will initially use existing cabin telephone lines to deliver less comprehensive Internet services to airlines more quickly. The chief executive of the News Corp. venture, Jeff Wales, said it hasn't faced any resistance on the scale cited by the paper. Its talks with airlines "at a minimum" involve revenue-sharing and in some cases equity ownership, he said. Carriers objected to initial proposals that would have involved the Boeing and News Corp. ventures billing premium passengers directly for Internet services, according to the Journal. The paper quoted Dietmar Kirchner, a Lufthansa senior vice president, as calling the proposals naive. Scott said Boeing has plenty of time to work out mutually beneficial solutions before its Connexion service is scheduled to begin operating. Wales, a senior vice president at News Corp., said its plans also are on track. The company's venture, called the In-Flight Network, also includes Rockwell International. Copyright © 2000 The Seattle Times Company [ seattletimes.com home ]