Airbus takes 30 pc stake in US inflight internet group

Airbus Industrie will today unveil its first corporate deal since converting to a fully commercial company in February. The European aircraft manufacturer is buying a 30 per cent stake in Tenzing Communications, a Seattle-based technology company specialising in in-flight email and internet access, for around $US50 million.

The move follows yesterday's announcement that Boeing has teamed up with three major US airlines to develop its rival in-flight communications system Connexion.

In-flight communications systems are set to become the next big development in the airline industry. Tenzing has so far signed up three airlines - Virgin Atlantic, Singapore Airlines and Cathay Pacific - and its system will enter service on the first commercial aircraft late this year.

Under the deal announced by Boeing, American Airlines, United Airlines and Delta Airlines have each agreed to take minority stakes in Connexion and install the system on 1500 jets, starting in the second half of next year.

The Tenzing system is simpler and much cheaper to install. It costs $US50,000 per aircraft compared with Boeing's much more ambitious broadband system which could cost up to $US1m an aircraft.

Although the Boeing system will offer higher access speeds and more capacity, allowing passengers to download live television and other entertainment as well as surfing the web, it is likely to be twice as expensive. Scott Carson, president of Connexion said the charge per passenger would be $US20 an hour compared with a suggested charge of $US10 for the Tenzing system.

- INDEPENDENT

www.nzherald.co.nz/travel