UK-based in-flight broadband provider AeroMobile has exited administration after its majority owner, Telenor Group, bought the company outright. Financial details were not disclosed.
Formed in 2003 as a 50-50 joint venture between Norwegian telco Telenor…
UK-based in-flight broadband provider AeroMobile has exited administration after its majority owner, Telenor Group, bought the company outright. Financial details were not disclosed.
Formed in 2003 as a 50-50 joint venture between Norwegian telco Telenor and US-based aviation communications company Arinc, AeroMobile was placed into administration on December 21 with BDO appointed to lead the restructuring process. At the time, Malcolm Cohen, restructuring partner at BDO, said the business would continue to operate as usual while further funding was found.
As to why AeroMobile fell into administration, especially with Telenor having, in the past 18 months, upped its stake to 99.85%, neither the company nor Telenor gave a specific reason. However, AeroMobile’s CEO, Bjorn-Taale Sandberg, did comment: “The recent restructuring was initiated to create a better platform from which we can realise our full long-term business potential, sustain product leadership and continually offer different ways for airlines to differentiate themselves.”
Indeed, one industry observer told SatelliteFinance that the reason Telenor allowed AeroMobile to go into administration would likely have been connected to obligations and contracts Telenor had with Arinc under the joint venture agreement.
Sandberg added: “This is a significant moment in our company’s history and a major step forward. Becoming a subsidiary of a renowned billion dollar industry giant such as Telenor Group gives us the necessary confidence to further develop the company to the benefit of our customers”
Utilising the satellite networks of both Iridium and Inmarsat to provide its services, AeroMobile had secured deals with a number of carriers including Emirates and Malaysia Airlines, and has been ordered by Qantas. The company’s hardware is also used by Panasonic through its eXConnect and eXPhone services that are being offered by the likes of Lufthansa. Since its launch, the AeroMobile system has been used by over 1.4 million airline passengers.
