Sea Launch Wins Contract With Hughes’ Spaceway Unit

Sea Launch said Wednesday it had won a contract to launch two communications satellites for Hughes Electronics Corp.’s Spaceway unit in a deal with Boeing Co., which also is building the orbiters.

Seattle-based Boeing, which bought Hughes’ satellite-making arm for $3.85 billion last year, owns 40% of Long Beach-based Sea Launch, an international consortium that runs a floating satellite launch platform near the equator.

The companies did not disclose financial terms of the deal.

The contract illustrates Boeing’s strategy of building a broad-based space business capable of managing satellites from construction through launch and on into in-flight testing, essentially delivering satellites to customers in orbit.

Sea Launch has completed five successful missions to date, including a launch for XM Satellite Radio Holdings Inc. earlier this month.

Anglo-Norwegian engineering company Kvaerner Group also owns a 20% Sea Launch stake, which it has said it is looking to sell.

Shares of Hughes fell $1.30 to close at $18.55, and Boeing fell 20 cents to close at $55. Both trade on the New York Stock Exchange.