LG Electronics has taken its first step to make inroads into the in-cabin signage systems market. The South Korean electronics maker announced on Thursday that it will establish a joint venture (JV) with Lufthansa Technik, a subsidiary of Deutsche Lufthansa, Germany’s largest air carrier, in a bid to develop in-cabin electronics systems together.
The two companies signed a contract for their joint venture business on Tuesday (local time) at the headquarters of Lufthansa Technik in Hamburg, Germany. In addition to airplane maintenance and parts supplies, Lufthansa Technik is doing in-cabin interior business for private planes. The joint venture will be officially launched in the first half of 2019 and headquartered in Hamburg. The name of the new venture has yet to be decided.
The new joint venture is aiming to develop enhanced in-cabin signage systems by converging LG’s prowess in OLED display technologies with Lufthansa Technik’s capacity in airline business. The main target for the new system is empty space on board such as crew’s standing space, overhead compartments, and the walls. Compared to conventional LCD models, OLED displays are thinner as they have no backlights and have more leeway for curved designs. OLED is considered as the most optimal display system for signage as it produces vivid and precise colors at any angle.
Globally, the size of in-cabin electronics market is estimated to be about 15 trillion won a year. Categories are also diverse such as in-cabin display, lightings, chairs, and communication systems. The number of business players is limited owing to the relatively high entry barriers such as a requirement for aviation safety certification. “We expect that we will be able to provide a new aviation experience through our technological cooperation with Lufthansa Technik,” said Kwon Soon-hwang, president of Business-to-Business Company at LG Electronics.
Dong-Jin Shin email@example.com