Airbus has agreed to take a sizeable equity stake in airborne e-mail and internet service provider Tenzing Communications in a move that forms a key part of its strategy to offer e-mail and web access on its aircraft.
An Airbus-Tenzing alliance has been mooted for a while, with Tenzing's recent deal to provide services on Virgin Atlantic's fleet, including its new Airbus A340-600s, seen as firming up the relationship (Flight International, 3-9 April). Industry sources say the deal was concluded recently and current planning calls for it to be announced at the Paris air show in June. Airbus declines to comment.
The size of the Airbus stake is unclear but sources say it is "significant" and will involve a major equity infusion by the airframe manufacturer.
Airbus has been working on its strategy for airborne e-mail and internet access for some time in an effort to counter Boeing's Connexion broadband e-mail, internet and live television services, which have yet to attract a launch customer. Airbus executive vice president customer affairs John Leahy said last month that a key announcement would be made on its plans involving one or more partnerships by June.
Tenzing was only founded in 1999 and remains a closely-held private company. A subsidiary of its launch customer Cathay Pacific Airways recently invested $10 million, giving it a 10% stake and lifting Tenzing's funding to more than $45 million.
Other investors include private shareholders as well as telecommunications investment firm Fremont Group, and venture capital and aerospace companies TH Lee, Riverside Management Group, JGL Investments, Deutsche Bank and Itochu.
Meanwhile, Singapore Airlines (SIA) has become the third carrier to commit to offering Tenzing's e-mail and "best of the web" internet-type services across its fleet, after Cathay and Virgin Atlantic.
The deal follows a one-aircraft Boeing 747-400 trial which started in March. The services will be progressively offered on SIA's 747-400s and 777s. Air Canada, Scandinavian Airlines and three unidentified carriers are planning to or have conducted trials of Tenzing services.
The e-mail/internet move is part of SIA's S$300 million ($165 million) investment over the next 12-14 months to upgrade its in-flight entertainment (IFE) and communications, the major part of which sees the fleet-wide installation of Matsushita's latest interactive IFE hardware, the System 3000, replacing its system 2000E predecessor (Flight International, 30 January-5 February).
Source: Flight International
