If true, the new contract would be a huge morale boost for Boeing's El Segundo satellite operations.
Boeing Nears Intelsat Satellite Deal
(WSJ) After struggling for years, Boeing Co.'s commercial-satellite manufacturing business appears poised for a lift by snaring what is likely to be a $400-million-plus, multi-satellite order from Intelsat Ltd., according to people familiar with the matter.
While no final agreement has been signed, negotiations between Boeing and Intelsat, the largest global satellite-services provider, have been making steady progress over the past months, these people said. Barring some last-minute snag, a contract for as many as four satellites with an estimated value between $400 and $550 million is expected to be signed within the next few weeks.
The deal, first reported by industry publication Space News, would help rejuvenate Boeing's satellite-making unit, which has barely broken even over the years, significantly cut its workforce and largely shunned the commercial arena. Combined with U.S. government awards that were delayed and others that Boeing failed to win, the Chicago aerospace giant's satellite factory, based in El Segundo, Calif., faces the threat of further reductions. In the past, Boeing officials even had preliminary discussions with rivals about potentially merging or selling the unit.
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