Mumbai, Maharashtra, India, Thursday, August 25, 2005 -- (Business Wire India)

In-flight entertainment and connectivity (IFE & C) solutions offer greater variety than ever before with the decision of regulatory authorities to allow data and voice connectivity in aircraft cabins. Traditional IFE & C - once primarily associated with legacy IFE & C systems, stored content and cabin communications - has expanded to include portable IFE & C players, satellite TV and personal IFETM among others.

“The new IFE & C solutions and products offer huge scope for non-seat revenue generation,” remarks Ms. Binny S. Prabhakar, Global Programme Manager, Commercial Aerospace & Defense, Frost & Sullivan (http://aerospace.frost.com). “They also minimise the airlines` downside by providing increased avenues for cost reduction through outsourcing, risk sharing, reduced capital and operating costs.”

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Low-cost carriers have also started entering the IFE & C industry in a big way. Having pioneered the concept of meeting passengers` needs with few frills and low fares, these budget airlines are now extending their operative model to in-flight entertainment as well. Not only are they providing innovative IFE & C solutions at a fractional cost, but they also have passengers willing to pay for these services. For instance, Alaska Airlines launched portable IFE & C solutions and Jetblue Airways introduced Live TV - both available to passengers at nominal costs.

Frost & Sullivan expect the provision of Audio-Video-Connectivity on Demand (AVCOD) to eventually become the killer application for airline IFE & C. As a growing number of airlines begin offering data connectivity as part of the on-board product and services mix, questions are surfacing about whether and how it will affect existing onboard IFE & C. Frost & Sullivan anticipate connectivity to supplement traditional IFE & C in the short run rather than replace it. In the long term, connectivity will transform IFE & C solutions, including the present-day IFE & C and Audio-Video-on-Demand (AVOD).

As the penetration of on-board connectivity increases, the airline cabin environment could become very similar to that on the ground, wherein passengers can not only work and access a variety of entertainment options but can also customize and personalize the content and interfaces.

Indeed, choice is likely to be the new buzzword for airline passengers. They will be able to choose between use of the airline-provided IFE & C systems and content or their own entertainment devices and content. Consequently, the personal IFETM will become the preferred entertainment source and medium aboard the aircraft.

With so many options available, airlines today can no longer assume passengers to be captive users of their IFE & C offerings. Terrestrial consumer electronics and telecom technology is constantly advancing and, in many cases, is far more sophisticated than the technology available in the aircraft cabins.

Additionally, business passengers have much higher expectations for being able to utilise the time spent aboard the aircraft effectively and they increasingly carry personal electronic devices (PEDs) onboard to this end. This rapid proliferation of PEDs in this arena not only gives passengers an edge over aircraft IFE content but also a greater amount of power.

“As the comfort with traditional embedded legacy IFE & C systems decreases, airlines need to overcome their administrative inertia and introduce fresh IFE & C ideas that appeal to passengers, reduce costs and generate revenue,” notes Ms. Prabhakar. “They need to be proactive and innovative in deploying IFE & C solutions that are in tune with next-generation passenger needs.”

With the introduction of several IFE & C hardware and software platforms, airlines have an increased portfolio of choice for putting together distinctive offerings. There is greater scope for differentiation than ever before as several permutations and combinations are possible to offer solutions tailored to specific passengers, classes, flights, regions, networks and so on.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company`s industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.