AERQ is halting all business activities. Launched in 2019 as a joint venture of Lufthansa Technik and LG Systems, the company had been developing a digital entertainment and advertising platform for airlines.
In a statement announcing the closure AERQ notes its Aerena solution made it so far as a “operational demonstration” and that it “represents one of the most advanced products of its kind on the market.” Still, that was not enough to overcome the many challenges of establishing an IFE company.
Although the AERENA product has so far met all expectations in terms of features, quality, and customer satisfaction in ongoing flight operations, AERQ was facing significant obstacles to enter a very sensitive market for IFE systems. For this reason the shareholders have mutually agreed to conclude AERQ’s journey here and part ways. AERQ’s operations will, as a result, cease with immediate effect. – AERQ Statement
AERQ launched in a nontraditional way, focusing on digital displays in the cabin, but not in the seats. The company also hoped its relationship with LG would help speed time to market and reduce the technical challenges of getting the most modern screens on to planes.
This was at least somewhat successful. The company brought the idea of transparent divider screens to the cabin, for example, allowing for advertising and sharing of information in the cabin, without being too intrusive.
The company was also working to bring curved screens into the cabin.
And, perhaps more than anything, AERQ insisted its offering was about more than just being an entertainment solution for passengers. The company believed it had an advantage in melding information, entertainment, advertising, and other functions into a full-featured digital platform.
Ultimately, however, like other recent IFE upstarts (Lumexis, DFP, Gogo Vision), the timeline and costs associated with developing an entertainment solution for commercial aviation were simply too much to bear.
The closure will affect approximately 180 employees at the company’s Hamburg HQ.
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