Spending cuts in IFE hits global industry warns IMDC

The IMDC forecast suggests the decline in IFE expenditure began late last year and is driven by delayed and deferred aircraft deliveries and a reduction in retrofit activity.

"It will take almost three years for airline expenditure to reach 2008 levels," IMDC senior analyst Robert Smith sais adding that new growth will be driven by "a steady increase in deliveries of twin-aisle aircraft combined with pent-up retrofit demand".

The report adds that in-flight connectivity  - led by work in the Middle East through Emirates and Al Wataniya  - is increasingly becoming an essential offering. "Generally, airlines are now convinced that connectivity will be a part of the passenger experience," Smith said. The Gulf is one of the regions where in-flight calling is most desirable, globally the demand is for broadband internet and Smith said there is a "consensus that broadband Internet will come in time". But, he warned, there is "still a gap in who might pay for the equipment".

In Arabian Aerospace magazine Brendan Gallagher suggested that pricing for in-flight Internet is expected to be in line with ground services. But IMDC’s  Smith issues a word of caution, noting that the price point on the ground is "expected to decrease in coming years" and warns that as passengers get used to high-speed broadband, airlines that offer a more limited service will find it "very hard to charge" for that service.