GTE is to sell its in-flight communications division, GTE Airfone, as part of ongoing efforts to divest itself of "non-strategic operations". At the same time, new satellite system operator Iridium has pulled out of plans to acquire fellow in-flight telephone service provider Claircom Communications from AT&T and Rogers Cantel.
GTE Airfone, which provides in-flight telephony services to airlines and corporate aircraft operators, is to be sold to US private equity investment group Oak Hill Capital Partners.
The company provides telephone and data communications to 61% of commercial aircraft in the USA, in addition to more than 1,300 corporate aircraft.
The company also supplies equipment to airlines that use alternative in-flight telephone services.
Meanwhile, troubled Iridium has terminated the contract to purchase Claircom, as the acquisition "would not be consistent with current commercial priorities". Iridium last year announced plans to buy the AT&T division, but it is focusing on boosting revenues and subscribers for its core satellite service, following its failure to meet revenue and subscriber targets.
Source: Flight International
