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Mon, 14.04.2003
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pte20030414023 Media/Communications, Computer/Telecommunications
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Inflight media market grows, despite airline crisis
Commercial and private travellers to help boost business

Frankfurt/Main (pte023/14.04.2003/11:23) - Despite the ongoing crisis in the airline industry, consulting group Frost & Sullivan http://www.frost.com predicts world-market growth in inflight entertainment and passenger communication (IFE). Entertainment technology, and internet access are becoming irresistible competitive advantages for troubled airlines. No longer are headphones the only way of transmitting entertainment.

Frost & Sullivan predicts a short-term lack of investment in such entertainment commodities, due to the dire state of most airline companies, but the mid-to-long-term prognosis is growth in the flight entertainment sector. This will be dependent on the commercial travellers market. In 2002 reports recorded 92.4% of this market's turnover in IFE business. The remaining 7.6% was brought in by private and business flights, in which inflight radio and TV and other programming are already standard.

"Long-term, the key to IFE-market success lies in the continuation of technical development," said Jerry Weltsch, of Frost & Sullivan. On-board telecommunication is expected to be a profitable sector of growth, whereby economy will have to be achieved through mass-production, and must also be included in all the future Airbus and Boeing construction. If this doesn't happen, 35% to 65% of the potential market will be lost,
The Asia-Pacific region is predicted to have the highest chance of growth, followed by Europe.

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