Lufthansa is hoping it can reinstate internet connectivity on board its aircraft this year, despite provider Connexion by Boeing's switch-off of service at the end of last month.

The German carrier was the first and largest of Connexion's 11 customers for the on-board connectivity service, building a fleet of 62 equipped aircraft since introducing the service in May 2004.

But Boeing decided last August to halt Connexion with effect from the end of 2006, citing a lack of demand following a review of the unit's viability.

"We want to keep the service, but Connexion by Boeing cancelled the service and closed the company," says the airline. "For us it means we must have a temporary interruption, from the start of January."

But the airline continues to talk to suppliers on restoring connectivity. "We are in discussions with potential providers, but we will have to wait for what the outcome will be. But we hope to have it again this year," it says.

Lufthansa does not specify the companies to which it is talking, but one company that has publicly announced interest in taking over the Connexion service is Panasonic Avionics.

Panasonic, which is already developing its own Ku-band connectivity service for airlines, has made this move dependent on securing commitments covering 500 aircraft.

Lufthansa is to raise its stake in leisure airline Condor after agreeing to sell its 50% share of tour operator Thomas Cook to retailer KarstadtQuelle for €800 million ($1.05 billion). KarstadtQuelle already owns the other 50% of Thomas Cook. The latter holds 90% of in-house carrier Condor, with Lufthansa owning the other 10% of the airline.

As part of the sale agreement, Lufthansa will raise its stake in Condor to 24.9%. KarstadtQuelle will have the chance to acquire these shares from Lufthansa after two years.

Lufthansa will also acquire Condor's shares in Turkish holiday carrier SunExpress, the 50:50 joint venture with Turkish Airlines.




Source: Flight International