Gulfstream books sale of $1.25 billion in Paris

LE BOURGET, France >> Gulfstream Aerospace Corp. clinched the first firm sale of passenger planes at the Paris Air Show yesterday: a $1.25 billion order for 35 business jets from United Airlines affiliate United BizJet Holdings.

In two other deals announced at the show, Germany's Lufthansa AG said it aims to be the first European airline to sign up for Boeing Co.'s new in-flight Internet service, while European space company Arianespace said it has been hired to launch three satellites for PanAmSat Corp. of Greenwich, Conn.

The rivalry between Boeing and Airbus Industries also heated up, with each company pressing its own vision about the future of commercial air travel.

Airbus Industries presented mock-ups of parts of its planned 555-seat jumbo airliner, the A380, while Boeing plans a presentation later this week on its concept for a faster plane, the Sonic Cruiser.

On Saturday, United Bizjets said it planned to buy $2.5 billion worth of business jets from France's Dassault Aviation. It plans to order 40 Dassault aircraft and take an option on an additional 60.

Compaq iPAQ Q2 sales to top Palm's, survey says

SAN JOSE, Calif. >> Palm Inc., the dominant player in the handheld computer sector, looks set to lose its market share lead in the current quarter -- measured in revenues -- to Compaq Computer's pricier line of iPAQ handhelds, a survey due out today will show.

Dataquest, a unit of high-tech market research firm GartnerGroup, said its data suggest that Palm will retain a strong margin in terms of units shipped but that it will lose its lead, based on total revenue, to Compaq's iPAQ.

Compaq's market share gains in handheld computers mark the progress the Houston-based personal computer manufacturer is making in expanding beyond its traditional personal computer product base, where it has been losing ground. It recently slipped to No. 2 behind Dell Computer Corp. in global PC sales.

Dataquest projected Palm will post hardware revenue of $130 million to $135 million for its fourth quarter, which ended June 1. That is below the $140 million to $160 million Palm itself forecasted when it warned of lower results in mid-May.

Handspring, also maker of handheld devices based on Palm software, expects revenue for its fourth quarter ending June 30 to be in the $60 million to $65 million range.