In-flight entertainment (IFE) start-up, AERQ, is to cease trading after five years of development. The company, founded in 2019 as a joint venture between Lufthansa Technik and LG Electronics, will immediately stop offering and developing its platform-based IFE system, AERENA.

Despite successfully launching AERENA for operational demonstration on a Discover Airlines Airbus A320 and receiving positive feedback on its features and quality, AERQ says it faced “significant challenges in penetrating the competitive IFE market”. This led the shareholders to mutually agree to conclude the venture.

AERQ’s closure will impact approximately 180 employees at its Hamburg headquarters. The company is currently preparing for an orderly wind-down process.

“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,” the company said in a statement.