KIERAN DALY / LONDON

Discussions could lead to a collaboration between rivals in attempt to reduce cost of VDL-2 network to airline

Long-time rivals Sita and Arinc are in talks that could lead to them collaborating over the global infrastructure needed for the next generation of datalinking for airlines.

Each faces building 700 remote ground stations (RGS) to provide the digital VHF datalink Mode 2 (VDL-2) network that will gradually replace the analogue aircraft communications addressing and reporting system (ACARS) nowin use.

Neither is officially confirming the discussions, but sources in both companies confirm that "very sensitive" talks have begun.

The two sides believe they can cut the cost to their airline and air traffic control customers of fielding VDL-2, but fear that a link will be interpreted as reducing competition and potentially increasing costs instead. Datalink service provision is largely differentiated on pricing.

VDL-2 is intended to overcome datalink congestion in dense airspace and enable new services, such as graphical weather data, and more air traffic control applications.

Newly appointed SITA vice-president aircraft communications George Cooper says that, "dispassionately", only about 1,000 RGS are needed for VDL-2.

Stressing that SITA is "a great advocate of competition", he adds: "It is hard to imagine that putting in 1,400 VDL-2 aerials, which are more expensive [than ACARS RGS], is the lowest-cost solution.

"There has to be some sort of understanding that the development and use of this network has to be done differently to how it has been up to now. Competition between us and Arinc in RGS has brought benefits, but it has also added cost." SITA puts its own initial investment in the VDL-2 transition at $15-20 million.

Arinc says in a statement: "We are constantly seeking ways to make our service more cost-effective and thus increase the value to our customers. In this light we have explored, and continue to explore, innovative ways to deliver the next generation of datalink service to the airline industry."

Source: Flight International