Panasonic Avionics Corp., the Lake Forest-based maker of in-flight entertainment and information systems, has a new technology chief as well as new contracts in the Middle East and Tanzania that will help soften the blow of rough recent financial news resulting from the pandemic.
The company on July 27 announced the appointment of Joe Bentley, a former vice president at Hulu, as chief technology officer. He replaces David Bartlett, who left in January.
Bentley is responsible for “leading all aspects of the company’s software and systems engineering teams, cloud, hardware, and IT/security,” according to Panasonic Avionics, which plans to move its local operations to Irvine’s Park Place office campus (see front-page story).
Middle East
Panasonic Avionics said July 13 it had been selected by Middle East Airlines-Air Liban to provide in-flight entertainment and connectivity solutions for 15 of its Airbus A321 aircraft.
“The Middle East is a dynamic and strategically important region for Panasonic Avionics,” Ken Sain, chief executive of Panasonic Avionics, said in a statement announcing the deal.
In addition, Air Tanzania has selected Panasonic Avionics’ in-flight entertainment connectivity system onboard its Airbus A220 aircraft.
“The airline has equipped two of its A220s with Panasonic’s eX1 IFE solution which is specifically designed for narrow-body aircraft,” Panasonic Avionics said on July 22.
Panasonic Avionics did not disclose the values of the contracts.
Company spokeswoman Rowena Falcinella said that “commitment by these airlines in this current challenging environment is especially welcome.”
“Panasonic is in regular dialogue with many airlines across the globe,” she told the Business Journal on Aug. 4. “When we are able to announce further customer contracts, we will do so.”
The company’s systems include a new concept for video gaming enthusiasts, wellness and an inflight-moving map to help pinpoint locations, along with the traditional movies and TV shows.
Coronavirus Fallout The company, like most in the local aerospace and airline industry, is taking a major hit from the coronavirus crisis.
Revenue at the company’s Avionics unit, which also provides an array of other offerings including maintenance and technical services, dropped 53% to $256 million for the fiscal first quarter ended June 30, compared with the same period a year earlier.
The unit is part of Osaka-based Panasonic Corp. (OTCMKTS: PCRFF), which itself reported companywide sales fell 26% to $13.1 billion during the three-month period.
Panasonic Corp. Chief Financial Officer Hirokazu Umeda said the company is projecting a “rather difficult half year” for Avionics though the overall CNS segment—which includes Avionics—is expected to be recovering, according to a Thomson Reuters transcript of remarks he made to financial analysts. The company finance chief spoke shortly after the Japan-based ultimate parent company’s earnings were released on July 30.
Workforce Reduction
Panasonic Avionics said in April it had implemented workforce reductions and furloughs, and put in place “temporary reduced work schedules across its U.S. and global operations” for the employees who remained.
Permanent job cuts were reported with the state a few weeks ago.
Panasonics Avionics competitors include Thales InFlyt Experience, which is based in Irvine, and a unit of France’s Safran Passenger Innovations that has a hub in Brea. Both companies have reported recent local job cuts.
