LIFE AFTER SQ006 - Orient Aviation

i n f l i g h tClick, click ... Inflight AsiaInflight Asia has gone electronic. For the best in breakingnews, inflight service and cabin management trends andpeople moves in our industry go to Orient Aviation’s website orientaviation.com and click on Inflight Asia.A selection of the top stories also will be included eachmonth in Orient Aviation.Cathay takes 10%stake in TenzingBy Christine McGeeCathay Pacific Airways moved to theleading edge of electronic communicationsonboard with its decision totake a stake in the global inflight communicationscompany, Tenzing Communications.The Hong Kong-based internationalcarrier announced in mid-February its whollyowned technology investment company,Taikoo Aviation Technologies Limited, hadpaid US$10 million for 10% of the Seattlebasedcompany’s shares.Ian Riddell, the airline’s informationmanagement and e-business director said ina press statement: “The investment in TenzingCommunications is consistent with ourventuring programme, a key element of oure-business strategy.“It recognises that inflight connectivityfor air travellers will become an essential partof the service offered by leading airlines overthe coming decade. Cathay Pacific, throughTenzing, wishes to be at the forefront of thewave of new service offerings.”The same press statement said the US$10million investment was part of the secondround of funding raised by Tenzing Communications.The leading contributor to the firstround of investment – US$12 million – wasan international communications company,the Fremont Group. Other parties to the twosequences of investment were foundingindividuals of the company, TH Lee, RiversideManagement Group, JGL Investments, DeutscheBank and ITOCHU Corporation.Tenzing Communications is a companythat seeks to develop and provide inflightconnectivity solutions including inflight e-mail,terrestrial global roaming capabilities, extensiveWeb content and focused e-commerceand updated content.Last year, Cathay Pacific announced itwould invest HK$2 billion (US$256.5 million)in e-business products that have includedCathay Pacific information managementand e-business director, Ian Riddell: inflightconnectivity will become an essential partof airline serviceTenzing chief operating officer,Alan Pellegrini: Cathay’s investmentsignificant in more than financialterms; signals confidencea re-launch of its website, introductionof NotiFLY (informs passengers of flightchanges), development of a sophisticateddownloadable trip planner and upgradedonline booking and check-in systems.At the same time that Cathay Pacificannounced its e-business investment strategy,it conducted an onboard trial of Tenzing’sinflight e-mail system. Shortly afterwards,the airline decided it would install Tenzing’sinflight connectivity system across its fleet.Earlier this year the carrier announced itsdeadline for “deploying” – the third quarter ofthis year. Cathay Pacific said the e-fit makes itthe first airline in the world to commit to theintroduction of e-connectivity for passengersacross its entire fleet.In Singapore, SIA conducted separate trialson two inflight e-communications systems– Tenzing’s product and Honeywell’s system.Both models have yet to produce the technologyto offer real-time e-mail and websiteaccess, but developments in the field aremoving so fast that inflight access to e-mailand the Web are soon expected to match theterrestrial e-mail and Internet accessibility ofpassengers.Tenzing burst onto the inflight scene atthe 1999 World Airline Entertainment Association(WAEA) conference and exhibitionin Salt Lake City, Utah. It was an unknownquantity, but it instantly distinguished itselfwith its marketing pizzazz and accessibility– an experience unique among its competitorsat the time. At that 1999 WAEA conferenceand exhibition Tenzing’s early assault marketingteam said Cathay Pacific was a possiblecustomer for its system.Since then it seems to be love betweenthe Hong Kong carrier and the Seattle-basedcompany, with the parties apparently agreeingthat e-connectivity – from e-mail to theInternet to direct-to-cabin television entertainment– is the next big moneymaking thing.Said Tenzing’s chief operating officer,Alan Pellegrini, an ex-Rockwell Collins salesvice-president: “This investment from CathayPacific is significant in more than financialterms. As with our first round of funding, thisinvestment signals a high level of confidencein Tenzing and our services from airlines– industry leaders who understand ourbusiness and our target markets.”Having secured significant investmentfrom a prestigious stable of e-venture companies,including Cathay Pacific, the critical questionis: which passengers will pay for whate-connectivity services onboard?30 | Orient Aviation | March 01