ALASTAIR REED

VOLO, an Edinburgh-based start-up, is to launch its innovative, onboard entertainment system in June after raising £2 million in funding and signing up Scottish transport giant FirstGroup on a six-month pilot scheme on its trains.

Founded by chief executive Ian Halifax and chief technical officer Colin Cassidy in 1999, Volo has developed an interactive system, which it believes will revolutionise onboard transport entertainment.

The system, which is initially being targeted at trains, is based on a touch sensitive individual screen fitted in seat-backs and tables. It will work on a charge-per-use basis and will feature films, games, music videos, along with information about the trip and destinations.

``For the cost of a magazine, we believe the system can help reduce the psychological length of a train journey by up to two hours,`` Halifax said.

Unlike in-flight entertainment, where travellers have no choice over what is viewed and when, Volo’s technology allows the user complete control.

``We’re doing with transport what Sky has done with the fixed set. We believe this is the first time that travellers will have complete freedom to watch different things at different times - and we’re at the front of the pack in delivering it,`` Halifax said.

The European market is worth about £620m according to Volo’s own research and Halifax estimates that the company is about 18 months ahead of its nearest competitor.

``In Europe alone, there are 1.9 billion city-to-city passenger journeys every year, with approximately 4,000 carriages under the control of 25 train operators,`` he added. ``The opportunities are enormous.``

While FirstGroup has signed up to a trial run on its First Great Western Service, a number of other operators, including GNER and Virgin, have also shown an interest.

Halifax said he expected the orders to start coming in by about August, with estimated total sales for the year weighing in at ``£20m-£30m``.

He added that Volo is also in discussions with the Chinese government about the possibility of putting its entertainment system in 4,000 new carriages for the Chinese State Railway.

Volo’s technology has been developed in conjunction with a number of major industry players, including computer giant Hewlett Packard, which has dedicated a number of its staff to taking the project forward.

Cassidy said that while the technology has been available for a number of years, it is only now that the cost has come down sufficiently to make the systems commercially viable.

The funding is made up of £1.54m of equity funding and about £500,000 in loans from HBOS. Scottish Enterprise Edinburgh and Lothian is also making a contribution through various grants.

While internet and e-mail will not be available at first, Cassidy said it was ``definitely where we’re heading``, adding that the timescale for its introduction depended on the uptake of the systems.

He added that Volo will provide ``an end-to-end service`` - managing the system from installation through to content management and day-to-day running.