ANDREW DOYLE / SINGAPORE
Following Honeywell's withdrawal, talks are under way with at least two potential buyers
Lufthansa Systems is in talks with at least two potential buyers for its Singapore-based Lido Aeronet subsidiary after Honeywell decided not to bid for the aeronautical software and data provider.
Bidders in the running include Boeing subsidiary Jeppesen and an industry consortium backed by a major venture capital company, sources say .
Any venture capitalist-linked bid could involve acquiring Lido's operations in Zurich and Singapore, or just the latter. It is not clear whether Lufthansa Systems intends to dispose of the Swiss unit, which was established via the acquisition of the former Swissair Flight Support.
One option is for Lufthansa Systems to retain control of Lido Aeronet, but bring other investors on board as shareholders.
Aeronet specialises in emerging technology such as cockpit moving-map displays. It also aims to distribute aeronautical data on behalf of civil aviation authorities. The Zurich unit supplies aeronautical charts and data for flight-management systems and airline route manuals. Lido's core flight planning operations based in Frankfurt will remain under the ownership of Lufthansa Systems.
Lufthansa Systems says: "We are still reviewing partnership opportunities and we are talking to several potential partners." Jeppesen declines to comment.
Honeywell is understood to be pulling out of the electronic flight bag (EFB) market following its decision not to bid for Lido Aeronet.
Lido is looking for investment from outside partners to help it accelerate development of its own EFB product and take advantage of an expected boom in airline demand (Flight International, 27 August-2 September).
It has secured Qantas Airways as the launch customer for its cockpit moving-map solution, which will run on Spirent Systems displays on the airline's new Airbus A330s. The EFB will provide pilots with electronic access to digitally stored maps, approach plates, performance charts and flight manuals.
AeroNet was established in June 2000 as a wholly owned Lido subsidiary with responsibility for developing mobile and internet-based flight support solutions.
Source: Flight International
