UPDATE 1-JetBlue's LiveTV to buy Verizon's Airfone network

(Updates with company announcement)

NEW YORK, June 9 (Reuters) - JetBlue Airways Corp's (JBLU.O) LiveTV unit said on Monday it plans to buy Verizon Communications Inc's (VZ.N) Airfone network to develop in-flight email and Internet services.

Financial details of the deal were not disclosed.

JetBlue and other airlines, such as Continental (CAL.N), use LiveTV's satellite-based television programming service to provide in flight entertainment.

LiveTV said it will take over the Airfone network, which is supported by 100 base stations scattered across the United States, starting Jan. 1, 2009.

The deal was reported earlier by The Wall Street Journal. While raising fees on everything from aisle seats to luggage to cope with soaring fuel costs, airlines are still aiming to add services to respond to intense demand for email and broadband Internet connectivity, the paper said. (Reporting by Christopher Kaufman; Editing by Louise Ireland and Dave Zimmerman)