After a five-year development phase, the Hamburg-based cabin digital platform start-up Aerq will cease its business operations. The Lufthansa and LG joint venture has stopped its inflight entertainment offering and the development of the IFE system with immediate effect.
Founded in 2019 by Lufthansa Technik and LG Electronics, Aerq has developed a digital cabin solution for commercial airlines known as Aerena. The solution was recently installed in an Airbus A320 of Lufthansa subsidiary Discovery Airlines for operational demonstration and is one of the most advanced products of its kind on the market.
The concept was based on high-resolution LG screens in each seat and in the medium term should also include a series of large-format OLED displays in the entrance area of the aircraft and distributed throughout the cabin.
Although the Aerena product has so far met all expectations in terms of functions, quality and customer satisfaction in ongoing flight operations, the Hamburg-based corporate start-up faced considerable obstacles in entering the very sensitive market for IFE systems. This market is dominated by a few specialists such as Panasonic.
For this reason, the shareholders have mutually agreed to cease Aerq’s business operations with immediate effect. Both JV partners will go their separate ways in the IFE area in the future.
This decision affects around 180 employees at Aerq’s Hamburg headquarters, who have already been informed. The orderly closure will be completed as part of a winding-up procedure that is currently being prepared.
