August 16, 2005 – BRITISH consultancy Inflight Management Development Centre (IMDC) expects to see airline expenditure on IFE/communications soar by more than 50 per cent over the next five years to an annual total of $2.6 billion.

In its just released third biennial report, Passenger Information, Communications and Entertainment Outlook 2005-2010, the company identifies inflight mobile phone, Internet access, and the accelerating move from broadcast IFE to digital video on demand as key trends that will drive spending. Other drivers include the growing passenger demand for a higher-quality onboard experience, developments in portable IFE, and the increasing adoption of IFE by low-cost carriers.

The connectivity market is expected to develop further, with providers offering enhanced functional and commercial propositions that will allow a wider range of passenger devices, and high-speed data implementations on aircraft increasing significantly in numbers.

According to the report, IFE penetration in the global air transport fleet currently stands at just over 45 per cent. But that proportion is increasing continuously, with around 70 per cent of airliners now being delivered with IFE fitted. “We see over 3,300 deliveries of IFE on new aircraft over the next five years,” says senior market analyst Mark Reed.