Doing business in China typically means finding a local company to help manage relationships and distribution. AirFi is the latest inflight entertainment company to make a move in that direction, adding United Enterprise as a partner.
It is expected that the market response to AirFi China will be strong, and we are excited about short and long-term opportunities for mutual development. We have already begun marketing AirFi solutions in the region with positive responses.
– Angie Peng, business development manager at United Enterprise
Cased in Guangzhou, United Enterprise represents, distributes, and services range of products and services for major brands in the aviation industry. That now includes AirFi’s portfolio, including its AirFi box IFE streaming solution, Connected Crew mPOS solutions, and award-winning AirFi LEO connectivity solution.
The China operations join dedicated operating partners in Vietnam, Indonesia, Japan, and the USA. In each case those companies directly support local or regional airlines. And, similar to the new AirFi China program, they typically are developed with local expertise through a licensing agreement. This allows for the company to manage the development of its solutions centrally, while also ensuring understanding of the local business nuance.
How long it will take to go from local partner to deployed customers remains to be seen. But the Chinese market holds massive potential. And, despite many promises over the past decade, still seems to shy away from full-fledged inflight connectivity offerings. That makes low-cost support of e-commerce and short-form entertainment particularly compelling on board.
AirFi is not the only IFE/C company to pursue the regional partnership approach. Air-to-Ground connectivity developer SkyFive also uses regional partners as it establishes coverage in new markets. In that case it also helps to cover the costs of starting up the operation in-country.
Other companies more specifically use the approach in China. Viasat’s 2019 deal with China Satcom to open that market’s Ka-band connectivity potential is a good example of such.
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