http://www.philly.com/mld/inquirer/business/14293055.htm Company owned by airlines for sale ARINC, a communications operation, works mostly with the U.S. military and the airline industry. By Brad Foss Associated Press WASHINGTON - ARINC, a 77-year-old military and aviation communications company owned primarily by the nation's largest airlines, is up for sale after more than a year of deliberations about how to raise the capital necessary to grow. No potential buyers have yet come forward. The Annapolis, Md., company, which had $890 million in revenue in 2005, derives two-thirds of its business from the U.S. military, for which it provides wireless systems that allow all branches to communicate over multiple devices. Its systems also are the backbone for some 95 percent of the U.S. airline industry's air-to-ground communications, and roughly 70 percent of the global air-to-ground market. In 2004, the most recent year for which data are available, ARINC had a profit of $9 million, matching its earnings for 2003. The company has benefited from the increase in national security spending following the Sept. 11, 2001, terrorist attacks, providing new communications networks for nuclear power plants, and systems to fingerprint and identify foreign travelers. Also, after Hurricane Katrina knocked out much of the Gulf Coast's communications systems, ARINC played an important role in enabling emergency personnel from different agencies to interact wirelessly, ARINC spokeswoman Linda Hartwig said. However, the financially troubled major airlines that own ARINC, including Delta Air Lines Inc. and AMR Corp.'s American Airlines, cannot afford to make the necessary investments to allow the company to expand, Hartwig said. "In order to really seek business opportunities, we need equity," she explained. Aside from the airlines, ARINC's long list of stakeholders includes Boeing Co., Ford Motor Co. and USX Corp., according to the company's 2005 annual report. --------------------------------- Blab-away for as little as 1¢/min. Make PC-to-Phone Calls using Yahoo! Messenger with Voice.