Emma Kelly/LONDON
Rockwell international will decide within 45 days whether its in-flight entertainment (IFE) and communications joint venture with News Corp, the In-Flight Network (IFN), has a future following an announcement that it is ceasing further investment in the initiative.
The rethink is the latest move in the airline internet/e-mail and live television market, which has already seen Honeywell withdraw (Flight International, 27 March-2 April). Rockwell's move will force it to take a non-recurring after-tax charge of around $16 million in the second quarter for the write-off of inventory related to IFN.
Rockwell Collins and News Corp formed IFN in March last year, bringing together the former's IFE hardware, satellite communications, avionics and system integration expertise with News Corp's programming content, satellite and broadcast experience. The venture was designed to bring broadband live television, internet and e-mail services to airline passengers. The partners later secured a deal with satellite system operator Globalstar and digital wireless communications specialist Qualcomm to provide high-speed data services.
Although Rockwell says IFN remains intact while it considers its options, industry sources suggest the manufacturer is unlikely to proceed with the venture and News Corp could not continue alone. Sources suggest Rockwell is likely to absorb the developments into its passenger systems unit and air transport division, the latter being where much of the technology originally came from with its Integrated Information System (I2S) developments.
IFN, along with its fellow broadband competitor Boeing Connexion, has found securing customers slow going despite successful e-mail and internet demonstrations late last year. IFN was planning airborne trials late this year, leading to full-scale deployment in early 2002.
Rockwell concedes that its move follows "slower than anticipated market development" and its failure to secure a launch customer. "We've got the technology there, but are the airlines ready for it?" asks the manufacturer. Airlines appear not to be ready for broadband internet/e-mail solutions, opting for narrowband services, such as Tenzing e-mail and internet services initially.
Even in the narrowband market, airlines are treading carefully, with only Cathay Pacific Airways and Virgin Atlantic Airways making fleetwide service commitments, while others - Air Canada, Singapore Airlines, Scandinavian Airlines and three unidentified airlines - are conducting Tenzing trials.
Source: Flight International
