Boeing Signs 40-Satellite Deal With SkyBridge

In a deal worth about $500 million that gives a small boost to its troubled Delta III rocket program, Boeing Co. will put 40 telecommunications satellites into orbit for SkyBridge, a venture led by France’s Alcatel Space. Boeing agreed to invest as a minority partner in SkyBridge as part of the agreement, which calls for the satellites to be launched aboard Delta III and Delta IV rockets. The new business won’t reverse the layoffs of 188 workers announced this week at Boeing’s aerospace operations in Huntington Beach, due to a slowdown in the commercial satellite industry. But it provides a needed vote of confidence in the Delta III, which has failed to successfully put a satellite into space. SkyBridge plans to create an 80-satellite network that would provide high-speed transmission to Internet service providers. Terms of the deal were not disclosed. SkyBridge, however, expects to pay about $1 billion to put all 80 satellites into orbit. Seattle-based Boeing is under contract to do half the work. Boeing shares rose 56 cents to close at $37.81 on the New York Stock Exchange.