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Lufthansa and Panasonic are staying mum about whether they are in talks - or have reached agreement - on an in-flight connectivity service contract.

Sources tell ATI that the German operator has decided to offer Panasonic's eXConnect Ku-band connectivity service on overseas flights.

Lufthansa was previously in talks with a group comprising T-Mobile, ViaSat and others. The carrier offered Boeing's Connexion service until that unit's commercial demise in late 2006.

"We are in ongoing talks with different suppliers," says a Lufthansa spokesman.

Panasonic says only that it has reached agreement with five carriers to supply its eXConnect high-speed Internet service. It has not yet disclosed its eXConnect customers.