In-flight entertainment (IFE) system supplier Interactive Flight Technologies (IFT) is aiming to complete its purchase of fellow IFE hardware manufacturer, the Network Connection (TNCi) on 15 May. The move is the latest stage in the shake-up of the IFE hardware supplier industry, which has seen the departure of some players and the arrival of major avionics manufacturers over the last two years.
IFT is merging its IFE activities with TNCi's, with a $5 million cash investment in Georgia-based TNCi, in return for a 60% stake. The merged company, known as TNCi, will base future developments on TNCi's AirView system and not IFT's In-Flight Entertainment Network (IFEN).
The merger sees the two weakest IFE system manufacturers combining. Both have been seeking partners for some time.
The deal brings a much-needed cash injection to TNCi, which saw net losses increase from $2.02 million in 1997 to $9.63 million last year, on revenues of $5 million. The manufacturer has had little sales success with AirView, despite considerable early interest. TNCi's only airline customer was Fairlines of France, which ordered AirView for 10 aircraft, but the carrier collapsed earlier this year.
IFT has also had a troubled history, despite pioneering audio- and video-on-demand and in-flight gambling with IFEN. The IFT system remains switched off on launch-customer Swissair's McDonnell Douglas MD-11s and Boeing 747s, following the crash of a Swissair MD-11 off Nova Scotia in September last year. Although the crash investigation has failed to find any link between the IFE and the crash, the airline switched off the system as a precautionary measure. The carrier hopes to reactivate the system in October.
The new TNCi will face increasing pressure in a highly competitive industry. Major avionics manufacturers have established a foothold in IFE, with Rockwell Collins purchasing Hughes-Avicom International to form Rockwell Collins Passenger Systems, and Sextant Avionique recently acquiring a 51% stake in B/E Aerospace's IFE division, to form Sextant In-Flight Systems. In addition, Honeywell has a strategic alliance with IFE hardware leader Matsushita.
The only major supplier not aligned with an avionics manufacturer is Sony Trans Com.
Source: Flight International
