Lufthansa Systems Ushers in New Era of IFEC Business Models

Representatives of Lufthansa Systems, Mahata Aero Teknologi, Inmarsat and Lufthansa Technik celebrate the launch of their new approach to IFEC refinancing.

Lufthansa Systems describes its new approach to establishing in-flight entertainment and connectivity (IFEC) business models as a breakthrough for the commercial aviation industry, with a focus on enabling refinancing opportunities for airlines through the use of e-commerce partnerships and platforms.

Garuda Indonesia’s low cost subsidiary Citilink is the first airline to start flying with connectivity enabled by the new refinancing business model. Lufthansa Systems’ first business partner behind the new option is Mahata Aero Teknologi, which is providing an e-commerce solution based on commercial offers and advertising partners. Those advertising partners provide a path toward Citilink and other airlines allocating the cost of providing internet services to passengers free of charge.

“Many providers offer financing models, but they often lack an understanding of the aviation industry. We are closing this gap with our expertise in IFEC solutions and with BoardConnect,” said Jan-Peter Gänse, head of passenger experience products & solutions at Lufthansa System of the new approach to IFEC business models.

BoardConnect is Lufthansa’s custom onboard open source IT platform that provides passenger access to Inmarsat’s GX Aviation-powered Wi-Fi connectivity. Mahata Aero Teknologi is working alongside Lufthansa Systems in addition to Inmarsat and Lufthansa Technik. While Inmarsat, the leading satellite provider, is supplying the broadband Internet connection with its global GX Aviation network, Lufthansa Technik is providing the hardware and performing the installation design and certification.

Garuda Indonesia signed an agreement with Lufthansa Systems to enable the use of GX Aviation via BoardConnect in December. The Indonesian carrier has not indicated whether it will also look to add the new business model to its mainline network fleet of aircraft.

“The first two customers using our solution have shown that we can provide models to suit low-cost carriers as well as airlines with large fleets,” Iwan Setiawan, managing director of Mahata Aero Teknologi said.