Boeing

American (NYSE:AMR), Delta (NYSE:DAL) and United (NYSE:UAL) airlines today announced a new partnership with Boeing (NYSE:BA) aimed at providing millions of worldwide airline passengers each year with two-way broadband connectivity to e-mail, the Internet, corporate intranets, live television and entertainment, and other services while in flight.

In a joint news conference, three of the world's leading airlines and Connexion by Boeing announced they have signed a Letter of Intent to pursue forming a new global business venture to provide broadband communications and data services to commercial aircraft. The proposed venture would be jointly owned by Boeing and the three airlines, with Boeing serving as the major shareholder with overall management responsibility.

"It will take this kind of collaboration to bring a high-quality service to the airline passenger and the entire marketplace," said Scott Carson, president, Connexion by Boeing. "Each of the airlines and Boeing bring together a critical mass to help ensure success for this service with airline passengers and the global airline industry."

Upon signing definitive agreements, Boeing and the airlines each will contribute funding, certain intellectual property, and other assets necessary to carry on the business of the proposed venture. As part of the definitive agreements, the three airlines will equip a total of 1,500 aircraft with the venture's innovative, high-speed broadband Internet connectivity service, which will retain the Connexion by BoeingSM name. The timing of the first installation will be in the second half of 2002.

"This is an exciting new frontier for each of the founding airlines," said James A. Beer, vice president, corporate development and treasurer for American Airlines. "Our goal is to bring a high-quality service to the market - one that will materially enhance the productivity of passengers while in flight. This joint effort between the four companies is essential to ensuring we create a service that will be valued by customers."

The next steps will involve the three airlines and Boeing working together to further develop the venture's service offering and business plan, and complete the definitive agreements required to launch the new service.

"The three airlines and Boeing bring exceptional familiarity with aircraft and leading-edge space and aviation technology," said Ray Valeika, senior vice president - Technical Operations, Delta Air Lines. "This provides the expertise necessary to develop a quality product that is attractive to the industry as a whole."

"There currently is no service comparable to this in the market," said Larry DeShon, senior vice president - Marketing for United Airlines. "Each of the airlines brings an unprecedented level of knowledge about the in-flight connectivity needs of passengers. In the end, it is passengers who will truly benefit from this service."

Current long-term forecasts show the worldwide commercial airplane fleet of about 14,500 jetliners growing at a rate of 4.8 percent a year. In the next 24 hours alone, 4.7 million people will board 41,500 flights around the world.

"The scope of the installations will allow the venture's system and service to be designed and developed for reasonable costs," said Boeing's Carson. "That's good news for both the airlines and their passengers."