Dublin | February 6, 2017–

Research and Markets has announced the addition of the “Global Galley Equipment Market 2017-2021” report to their offering.

The global galley equipment market to grow at a CAGR of 4.20% during the period 2017-2021.

Global Galley Equipment Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

One trend in the market is rising demand for customized galley systems. The global galley market has experienced significant growth over the years mainly due to the consistent vendor focus on providing customized services to the commercial aviation and marine segments. Most clients of the galley system vendors have specific requirements as they operate differently and there are no standard designs for galley systems. The customization is mostly based on different parameters, which include compactness design and light weight to reduce the overall load on aircraft and ships. For instance, airlines that provide five-course meals or offer self-service of beverages and snacks need extra space on the counter.

Key Vendors:

• B/E Aerospace
• JAMCO
• Kang Li Far East
• Loipart
• Zodiac Aerospace

Other Prominent Vendors:

• GN Espace
• Bucher Group
• JEITEK
• Diehl Aerosystem
• Aerolux
• National Marine Suppliers

Key Topics Covered:

Part 01: Executive summary

Part 02: Scope of the report

Part 03: Market research methodology

Part 04: Introduction

Part 05: Market landscape

Part 06: Market segmentation by application

Part 07: Geographical segmentation

Part 08: Key leading countries

Part 09: Market drivers

Part 10: Impact of drivers

Part 11: Market challenges

Part 12: Impact of drivers and challenges

Part 13: Market trends

Part 14: Vendor landscape

Part 15: Key vendor analysis

Part 16: Appendix

For more information about this report visit http://www.researchandmarkets.com/research/b5559z/global_galley

Before we get into more Singapore IFEC stuff we wanted to mention that next year’s APEX EXPO 2017 will be held on September 25 – 28 in Long Beach, CA USA. Check out the APEX website for more info. Now, on to APEX in Singapore:

Panasonic
While this year’s Panasonic booth was a blend of the “Cool Room” and the regular product displays, they were showing new products and solutions for the IFEC crowd. And finally, we got a communication focus on the application of advertising with the launch of Captify Inflight Marketing and advertising services. Captify, which is an advanced inflight marketing platform delivers all the key features needed by airlines, their external partners and paying advertisers. Since the platform comprises the software tools and support teams that power the largest inflight marketing solution in the world – reaching 1.3 billion travelers a year! Here is the big deal – Captify enables airlines to target by seat class, route, device, language, and passenger data. With no changes to on-board media, it can increase or decrease ad loads, cap the frequency of marketing campaigns, and deliver detailed usage data in real-time. This allows airlines to optimize promotions for a wide range of optional services, partnerships, loyalty programs, and paid advertising all within a compelling passenger experience.
The platform delivers video, native display, and sponsorship options for high-impact, fraud-free marketing with best-in-class targeting and results. Using this information, Captify helps airlines and their marketing and sales partners learn more about their customers by bringing together all the passenger and behavioral data, so airlines can gain intelligence and inform business or service strategies. Captify is built to fit any airline’s business model, with access for internal marketers, external sales teams, and ongoing trafficking and testing support from Panasonic. The full-service platform includes ground-side tools for scheduling and analytics of marketing campaigns; air-side servers and APIs to integrate with any aircraft’s inflight entertainment or connectivity systems; plus Panasonic’s dedicated service teams working hand-in-hand with airlines partners, media agencies, and content providers.
Next, Panasonic Global Communications (Panasonic), A Division of Panasonic Avionics Corporation, and Newtec – a specialist in designing, developing and manufacturing equipment and technologies for satellite communications – unveiled a new, high bandwidth satellite modem, which offers Panasonic customers twenty times the bandwidth of Panasonic’s current solution. Versions of this new modem will be available across Panasonic’s mobility markets including air transport, business aviation, maritime, cruise ships, mega yachts, and river cruises. Developed in partnership, the new modem is capable of exceeding 400 Mbps, and it can scale to meet the evolving needs of airlines and their passengers by facilitating the increasing bandwidth coming on stream over the next two years as High-Throughput Satellite (HTS) and Extreme-Throughput Satellite (XTSTM) services continue to be layered over Panasonic’s existing global network. This will expand network capacity from 2,300 MHz today to 15,000+ MHz by 2017.
The next-generation modem includes three demodulators for seamless beam switching and simultaneous data and video reception and is also part of the Newtec Dialog® multiservice platform, which supports a wide range of verticals, including aviation and maritime. Featuring the award-winning dynamic bandwidth allocation Mx-DMA®, it combines the efficiency of SCPC with the dynamic bandwidth allocation capabilities of TDMA to deliver up to 300 percent more data than legacy Time Division Multiple Access (TDMA) systems. Here’s the deal: By making a satcom beam narrower, Newtec delivers more power, and thus, use the full 150 MHz carrier. You remember Shannons theorem, right? This way they use a full 150MHz carrier – three times wider than Panasonic’s existing Ku-band systems. Very cool and speedy solution.
Lastly, we found Panasonic’s ZeroTouch service – it’s a unique and innovative service that simultaneously gives airlines real-time visibility into performance, improves the efficiency of its maintenance operations and also enables data transfer of passenger-facing content to an aircraft to improve the passenger experience. Panasonic’s ZeroTouch service will reduce an airline’s need to physically touch the aircraft because all interactions are managed through a virtual dashboard. By providing access to real-time passenger data, software, media and content updates can be data-driven, helping to deliver a relevant and personalized passenger experience. Updates will be sent to an aircraft via three high-speed pipes – Wi-Fi at the gate, aircraft cell modem, or even in flight using Panasonic’s global broadband eXConnect service. Paul Margis, CEO of Panasonic Avionics, said: “As an industry leader and trusted partner for over 35 years, Panasonic understands the infrastructure and support airlines require. Our data-driven, real-time ZeroTouch service combines all areas of our in-house expertise to help airlines maximize the efficiencies of their business and reduce their operational expenses.”

Rockwell Collins
An announcement at the show caught us a little off guard – “Rockwell Collins to acquire B/E Aerospace for $8.3 billion in total consideration”, so we asked the RC Team about the deal but because it was so new it was a bit too early to get reliable report answers for our readers. The release went on to say, “Expected to generate run-rate pre-tax cost synergies of approximately $160 million. Transformative transaction accelerates growth and strengthens Rockwell Collins’ position as a leading supplier of cockpit and cabin solutions. “Double-digit accretive to earnings per share in first full fiscal year with expected combined five-year free cash flow generation in excess of $6 billion”, and “Diversifies and balances portfolio across OEM, airline and aftermarket.” Further it went on: “The transaction combines Rockwell Collins’ capabilities in flight deck avionics, cabin electronics, mission communications, simulation and training, and information management systems with B/E Aerospace’s range of cabin interior products, which include seating, food and beverage preparation and storage equipment, lighting and oxygen systems, and modular galley and lavatory systems for commercial airliners and business jets. The acquisition significantly increases Rockwell Collins’ scale and diversifies its product portfolio, customer mix and geographic presence. On a pro forma basis, Rockwell Collins would have nearly 30,000 employees, $8.1 billion in revenues and $1.9 billion in EBITDA for the twelve months ending September 30, 2016.”
The story is probably like this: A lot of Rockwell Collins aviation earnings, including IFEC, vary greatly through the year and in many cases, IFEC may be down, while seating may be a hot item. This solution gives Rockwell a very well respected company to deliver another set of aviation products that they did not have. It also makes them a ‘nose-to-tail’ provider within that giant metal tube. And who knows, the integration of BEA into RC, may just further provide individual and combined sales products and events!

INMARSAT
One of the “big deals” in Singapore was Inmarsat, as they launched their GX Aviation inflight connectivity solution while there. GX operates at Ka-band, and unlike other solutions available today GX for Aviation is uniquely engineered to meet the needs of airlines and their passengers. Generally speaking, the higher the frequency the more bandwidth you can get out of the system, and the more bandwidth, the more users and the larger the data rates – bigger is definitely better in connectivity! The highly efficient Ka-band spot beams provide a foundation layer of global coverage designed specifically to serve high-speed users. But global coverage is only part of the story. GX offers the flexibility to add and redirect bandwidth where airlines need it most, across hub and traffic hotspots. And as demand inevitably grows, so will GX capacity, future-proofing airlines choice today. Imagine a cell network and since each satellite has 80 cells, the flexible cell approach allows the satcom receivers to hand over signals from one to another if one cell is overloaded (done today with L-band too). This is a big deal.
As we noted earlier, the GX Ka-band service is now live and Inmarsat will provide its advanced new GX for Aviation in-flight broadband solution to Austrian Airlines’ continental aircraft fleet under a new, recently announced contract. The Ka-band spot beams are extremely efficient and provide a foundation layer of global coverage specifically designed to serve a high-speed mobile audience. More than 30 Airbus A320 family aircraft from Austrian Airlines’ fleet will be equipped with GX for Aviation. We understand that the new service will allow the airline’s passengers to browse the internet, stream videos, check social media and more, with service levels on par with broadband connectivity available on the ground. We should note that the first installation and testing onboard Austrian Airlines aircraft is currently underway.
Also in the GX world, Honeywell and Boeing have recently signed a technical services agreement to develop technologies for the next generation of high-speed, in-flight wireless connectivity. The two companies will jointly research, test and develop the avionics hardware, software and potential aviation services that will utilize Inmarsat’s GX Ka-band satellites. The move addresses passengers’ increasing demands for faster, more reliable in-flight connectivity on smartphones, tablets and laptops.
(Editor’s Note: We can’t leave the Inmarsat story without reporting on their incredible booth in Singapore. It basically used virtual reality to tell visitors about 10 – 15 potential applications for the GX service from Inmarsat via VR headsets. First you are fitted with the headset and told that once in the viewing room, users could focus their headsets on the logo of one of the 10 – 15 potential areas of interest: ground connectivity, inflight operation, destination information and so on. Once a connection was established with the VR headset; the viewer was presented with a short audio/video scenario. Very clever and hopefully it will be at a future show!)

RUMORS/PREDICTIONS

• We expect to see more consolidation from mid-level vendors before AIX and it is happening NOW!

INTERESTING NEWS
Here’s a new one, or at least one we have not seen: Latitude Aero is having a Warehouse Liquidation Sale on A319 seating…  “All reasonable offers accepted” – Check it out!

In a continuation of their collaborative efforts on the economy class JAZZ Seat; four industry expert companies have launched a new standard in business class seating that provides the passenger with a harmonized seating environment with increased comfort and control. Said Neil James, Executive Director of Corporate Sales and Product Management at Panasonic “BE Aerospace, Formation, Panasonic, and Teague got together and holistically thought out how a business class seat and IFEC should work together. Our goal was to design and build the next generation passenger seat and a symbiotic IFEC solution for aircraft seating. The objective was to work with our partners to develop a superior business class seat that would a) integrate the IFEC into the seat structure b) enhance the customer experience in an environment that is calm, comfortable, captivating and immersive. I truly believe we have achieved these objectives with Waterfront.”

Waterfront was debuted to the public at CES Las Vegas 2016 and reflects approximately 18 months of product development and refinement. Like the JAZZ Seat, Waterfront was designed from a clean slate, eliminating many of the disadvantages of building on legacy hardware and electronics. BE Aerospace and Panasonic Avionics are targeting delivery of this innovative seat offering in 2019. And in case you were wondering if there is a significant market for a business seat growth over the next 8 years check out this presentation from Tronos Aviation Consulting Inc.  We should also note that the study clearly defines a 2014 seat market size of some 3.4 million seats in the airline world, 7% of which were premium seats, the market that the new Waterfront product will live in. Obviously this market size will grow in the coming years as Waterfront becomes available. (Also, see the Editor’s Note below for a bit more on seat market value.)

“Waterfront is an evolution in seat design,” said Alex Pozzi, Vice President, Advanced Design Group, of BE Aerospace. “We really focused on personalizing the passenger environment. By using reinforced thermo-plastics and stronger aluminum alloys, BE Aerospace was able to offer a trimmer, more efficient seat while enhancing the passengers comfort.” For those who travel in business class, this translates to: 1) temperature control and air flow in the seat back, upper neck and seat bottom 2) additional knee room when the traveler is sleeping on their side or getting up from the sleeper bed 3) ergonomic storage for the tray table and the passenger’s laptop, with a ‘push’ release 4) and overall, a seat frame that is lighter weight. These are just a few of the enhanced features but we will delve into these enhancements later on.

Before we describe the Waterfront Seat and IFEC solution specifics, we should address some of the challenges facing the business class experience today. A) airlines are continuously trying to find ways to differentiate themselves in an effort to remain competitive B) passengers are increasingly desirous of personalizing their private space C) and the ever increasing technological advances available on the ground. In other words, it is a changing world. Changing because of airline desires for customer product perfection, changing because of passenger wants and needs, and finally, changing because the world of technology is changing both the airplane technology and passenger carry-on technology as well. Waterfront addresses these factors by leveraging the digital experience of the IFE system and the advanced functionality of the seat to create a seamless responsive environment from the perspective of the passenger.

In order to develop the evolutionary design, the team began extensive research, consulting with strategic customers to better understand passenger behavior. Prototypes of the industrial and interactive design were paramount to the development of a seamless end product. “An anthropomorphic data study previously conducted on BE Aerospace’s JAZZ Seat helped in (determining) the comfort and shape of the back and bottom cushion of the seat,” said Alex Pozzi. Full-scale, functional models were created for both validation and testing purposes, which resulted in a design solution that met the program’s objective and requirements. Amazingly, the resultant product achieved an over 12% weight savings and a 15% reduction in part count over present day business class seats.

Waterfront Features IFEC & SEAT function:

• 24-inch 4K touchscreen monitor with edge-to-edge glass structure
• Virtual Local Storage per seat group
• Streaming Content from Head-End
• Gigabit Ethernet backbone
• Wi-Fi Connectivity
• Passenger controls via:
  • PED (via an airline companion app)
    • Light ID
    • Bluetooth
    • Wi-Fi
  • Mini PCU
  • Tablet pop-up
• Tailored GUI interface
• Inductive Charging (Qi)
• AC POWER
• USB Power Ports
• PED connectivity supported by: Bluetooth 4.0 and NFC
• An IFE User Interface coupled to hundreds of individually controlled LEDS with:
  • Full Spectrum LED lighting
  • Multiple modes that coordinate seat position, light intensity and color.
    • Passengers can tailor the lighting, temperature and the rest of their environment depending on what they are doing. For example they can create a “theme” environment for watching a movie, eating dinner, or sleeping… just to name a few!
• An innovative seat mechanism with individual head, leg, and back rest adjustments.
• Full range of motion – upright to a flat 79-inch bed
• 16.7 inches in the foot-well
• Individual articulation of the head, back, and leg rests
  • Fixed presets
  • Capacitive touch controls
  • Customizable presets via the IFE interface.
• Pop up storage compartment
• Full coverage sliding door
• Herringbone design allows for high-density seating configuration
• A large, single piece tray table
• A large fixed side table
• Cable pass-through areas for electronic devices
• Individual temperature control
  • Thermoelectric modules in the shell, foot-well, and seating surfaces allow for controllable ambient and direct heating and cooling.
• An independently heated or cooled side storage compartment
• Note: Panasonic will also be using Virtual Local Storage (VLS) storage in this seat and while SD card memory is common storage, VLS has 5 – 6 times the storage capacity, and further, they feel that they will be able to double that capability in the next generation system.

Enhanced service will be the end result through the ergonomically placed ‘touch points’ and passenger interactions zones. Communication between the passenger and the flight crew will also benefit via the slim 7-inch touch wireless controller/handset, which will display custom messages and iconography on the seat shell OLED display. The overall heating/cooling, both convective and conductive, can reduce overall cabin heating/cooling demands while providing more immediate benefit to the traveler.

From the IFEC perspective, the system creates what Panasonic calls “a passenger-centric solution.” Waterfront features improved reliability since it boasts a balance of the following: a) local data storage for content per seat, b) Virtual Local Storage per seat group to share local content, as well as, c) streaming content from the head-end server from a Gigabit Ethernet server. In fact, a version of this service offering is available today from Panasonic and is flying on some of Air New Zealand and British Airways wide-body aircraft. Furthermore, we asked about the 24-inch 4K screens and the availability of content and were informed that even if the content is not available in 4K format the GUI and Interactive experience is “very rich”, as is HD 1080p content viewed on a 4K screen. Panasonic is using Bluetooth 4.0 built into the display for ‘lite streaming’ requirements, as well as, Light ID for super fast, local low data rate transmission to PEDS. Provisions for NFC payments have also been implemented. All these features are to provide the passenger with an enhanced, tailored flight experience.

Like their collaboration on the JAZZ seat, each company owns their own IP and can work with other vendors as airlines demand. In fact, they are looking at working on future projects with traditional vendors, as well as, new entrants but together the team has developed a product that ostensibly is more than their individual additions – the whole idea behind a team.

As an aside, in 2014 at the Passenger Experience Conference prior to AIX Devin Liddell of Teague gave a presentation on the power of partnerships and how they were the most powerful currency at our industry’s fingertips. In other words, the team-made product is bigger than the sum of its parts. At the time he stated in his presentation that the capacity to partner has a big impact on influencing the customer and that we, as an industry, need to think about co-making, not just co-marketing. In our opinion that is exactly what Panasonic, B/E and the rest of the team have done with both JAZZ and Waterfront.

All this collaborative teamwork and disruptive design technology will virtually and physically improve the inflight experience for both the traveler and the airline. When we asked Mr. James about Waterfront and the benefits to the passenger and the airline he noted, “Panasonic likes to be dynamic and react to the customers’ needs and we use our capabilities to solve a customers’ problems. Waterfront is a holistic solution – not just IFEC in isolation.”

The new Waterfront seat will be at AIX in Hamburg as the early design has been entered in the Aircraft Interiors Crystal Cabin Awards – we expect they will do well.

(Editor’s Note: We wrestled with market size and price a little bit for the benefit of our readers and while no one discussed market size or price in this effort, IFExpress contacted a couple experts and here is what they told us: “The aircraft seat market is probably bigger than you might think. While the market itself is probably half new and half retrofit, it is growing. The seat price (no IFEC) is all over the map but premium sets are around 5 times what the price is per a single coach seat. The lie flat seats are priced about twice that.” As an aside, one outside industry source estimated that lie-flat seats for business/first with IFE can easily reach the $100K mark per seat when development, testing, OEM requirements, EMI testing and certification expenses are taken into account. Lastly, when you run the numbers with the assumptions we made here, the value of the total premium seat market is roughly the same dollar size of the total coach seat market! Thus, it is a market worth pursuing!)

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News:

Gogo announced today that it will upgrade its satellite modem for use with its next generation 2Ku and Ku satellite technologies.  The new modem will begin flight testing on Gogo’s Boeing 737 test lab – the Jimmy Ray – in the coming months, with commercial delivery expected to begin in 2017. The proprietary features of the new modem will significantly increase throughput from the satellite to end users on the aircraft.  The modem will be capable of delivering 400 Mbps to an aircraft, which will be more than enough to support the anticipated capacity of next generation high-throughput satellites.  The modem will also have the capability to simultaneously support IP streaming and IPTV.  “Just like your home or office Wi-Fi set-up, you can make improvements to the amount of bandwidth delivered, but if the modem can’t support that bandwidth, you can create a choke point in the network,” said Anand Chari, Gogo’s chief technology officer.  “Gogo’s next generation modem is being built with a lot of room to spare so it will be ready to handle data delivered from next generation high throughput satellites and beyond.” Gogo has partnered with Gilat Satellite Networks for the development of the new modem.  Gogo and Gilat together are developing advanced mobility management features that will be incorporated into the new modem.  Gogo has been lab testing the new modem, which has already delivered 200 Mbps using Gogo’s 2Ku antenna. Gogo has already begun the licensing approval process for the new modem through the FCC and the FAA.

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More:

1. The world of short haul twin-aisle aircraft seems to still be growing even tho the “new” single aisle planes (B737NG & A320neo) are coming on strong. IFEC vendors have to think about what developments are next to come along and how to modify or change IFE for a new plane seat concept- especially involving multiple classes. Here is a report from the CIT folks who say; “This is not a zero-sum game. Instead of siphoning travelers from established carriers, new airline business models will open international travel for a new class of passengers. A diversity of airlines experimenting with an array of business models will expand the operator base, increasing demand for both new- technology and current generation aircraft. Sophisticated owners will be well positioned to generate returns from a growing market for twin-aisle aircraft. “ Interesting report
2. Last time we told you Bob Bogash is now going to try to get that rebuilt 50-year-old B727 off the ground on March 1, 2016… now delayed till March 2. We note that his website has over 4 million hits on the site and story!
3. If you cannot get enough “airplane stuff” into your life, try the Boeing Store.

Inflight Wi-Fi provider (Gogo) has discontinued its deal to provide roaming Internet access for customers of Boingo airport Wi-Fi, announced in a notice sent to Boingo customers yesterday. In the past, users of Boingo could log on to Gogo with the same password. The company said to it’s customers; “Because you’re a loyal Boingo user who has logged in to the inflight Wi-Fi services provided by our partner Gogo, we thought it was important to let you know that effective June 1, that will no longer be possible.” As an“ease of service deal” only, we suspect more is going on here. The note from Boingo went on: “We’d like to apologize for this change, since we know our customers really appreciated this convenience.” Boingo and Gogo inked a deal in 2011 and Gogo has “opted not to renew its roaming contract with Boingo.” The airport Wi-Fi service provider noted that it still has roaming agreements with Deutsche Telekom, for access on international flights who services nine other international airlines and we were wondering if this cancellation was a notice to the industry that Gogo might be heading in another direction – Airport Wi-Fi? It makes a lot of sense since a ground application at the airport – both before takeoff and upon landing – it could usher in a new line of service and revenue for Gogo… but that is just a guess on our part. Stay Tuned!

Here are a couple news notes from Global Eagle – “IFE Services, a subsidiary of Global Eagle Entertainment (NASDAQ:ENT), announced today that it has developed Iberia’s new inflight entertainment (IFE) content app. Called ‘IberiaOnBoard’, the freely downloadable app allows travellers to check out all of the IFE content available to them on their upcoming Iberia flights. Every movie and TV show is listed by genre and has a trailer with accompanying useful information including synopsis, cast, director, rating, duration and language availability. Music album information lists tracks and their times. A special Kids’ section showcases all of the specially selected children’s content on offer inflight. Mobile app development is just one of many new products Global Eagle Entertainment has introduced to the airline industry recently as the world’s leading inflight entertainment content and connectivity provider continues its focus to innovate on behalf of clients.” And the second “Global Eagle Entertainment Inc. (Nasdaq: ENT) announced today that its subsidiary IFP has entered into a multi-year agreement with Etihad Airways to provide inflight entertainment (IFE) content programming across its entire fleet, as well as to its partner airlines Air Serbia and Air Seychelles. Starting this quarter, IFP will provide a rich and varied program of regional and international content including popular movies, TV shows and audio programming to support the airline’s world-renowned guest experience. “We’re thrilled to have been selected by Etihad Airways for its content services,” added Walé Adepoju, Executive Vice President of Customer Solutions for Global Eagle Entertainment. (Editor’s Note: Strangely, the market has reacted negatively – “Global Eagle Acquisition Corp (NASDAQ:ENT) takes the last spot on today’s list of midday losers. Its price dropped -8.27% even after the announcement that its subsidiary IPF has entered into a multi-year agreement with Etihad Airways to provide inflight entertainment and content programming. In Soros’ investment portfolio since March 2013, ENT’s price has fallen -23.87% YTD,” noted Motley Fool.)

On another note, BE Aerospace just purchased EMTEQ, the LED lighting company who has a large investment in replacement lighting. The very profitable BEA has quite a business in the Boeing Sky Interior and we suspect they may be looking to garner more retrofit LED lighting work. The deals come about a month after B/E said it may be putting itself up for sale as part of “exploring and evaluating” its strategic alternatives. “Demand for comprehensive and integrated solutions for power management, lighting and connectivity within the aircraft cabin is growing,” Amin Khoury, B/E’s chairman and co-chief executive, said in a statement. ”The combination of our lighting and power management systems business with EMTEQ’s highly complementary lighting, cabin management and power systems businesses, as well as their electrical and connectivity expertise, will allow us to expand our product and service offerings in the commercial airliner and business jet markets.”

If you have been wondering why we have been covering the real-time aircraft inflight positioning brouhaha it is because there are a lot of potential links between inflight entertainment hardware (severs for example), and the connectivity platforms and data acquisitions that serve them. Yes, we are out on a limb here but we have been talking to a number of companies, new and some presently in the IFE business, who feel that there is a need to get this job done. While some see the potential of revenues based on position acquisition, weather, system data, and performance information, if data connections to the ground are established, it might fulfill an age-old discussion that claimed that the aircraft is the last remaining un-served node on the airline network. As it turns out, there is some compatibility. A good example is Panasonic’s FlightLink. Compatible or not, companies in our industry are racing to get in the business (or related industries) by acquisition, developing new services, and is some cases, new start-ups. This brings us to a “Stay Tuned” note for an upcoming article on Wisscom. You probably never heard of them but you might in the near future.

Now, while still on the previous subject, IATA Chief, Tony Tyler, in a recent speech referring to safety challenges, said the loss of Malaysia Airlines flight MH370 pointed to an immediate need. “A large commercial airliner going missing without a trace for so long is unprecedented in modern aviation. It must not happen again. IATA, ICAO and experts from around the world are working together to identify the best recommendations for improved global tracking. By September, we will deliver draft options to ICAO,” he said. Watch this one.

Recently, an IATA news release noted the following: “The International Air Transport Association (IATA) predicts the global airline industry will generate $18 billion in profits this year, but far from being a cause for cause for celebration, Director General Tony Tyler called this forecast a “challenge.” “The brutal economic reality is that on revenues of $746 billion, we will earn an average net margin of 2.4%,” Tyler said June 2 at the IATA Annual General Meeting in Doha, Qatar. “That’s less than $6 per passenger.” Tyler noted profits are improving, and the average return on invested capital (ROIC) today is 5.4%, higher than it has historically been, but that is short of what he said is the 7-8% ROIC investors demand.” We wonder if future IFE sales have fallout from this development, but it certainly explains the drive for ancillary revenue. Interestingly AIER noted in February 2014, commercial airlines—the buyers of commercial aircraft, the transportation sector’s third major component—hit a new record high in their revenue passenger load factor (the ratio of revenue passenger miles divided by available seat miles in passenger services, a measure of the portion of aircraft seating capacity that is actually sold and utilized).”

A recent article in a communication weekly noted “Rumors have been rampant over recent months regarding Google’s satellite ambitions, which are tied to a desire to increase its information-gathering prowess (think Google Earth and Google Street View) as well as an effort to extend wireless broadband services worldwide and, thus, create a larger market for its other Internet-based products, including search, YouTube and more.” Further, we understand Facebook is also eyeing a similar solution for worldwide social media domination. FierceTech Wireless went on; “I would expect the (Google) constellation to be launched in two phases, with the higher altitude satellites providing complete global coverage, and the lower satellites being added later, in between the initial nine planes, to provide additional capacity. It also seems likely that the system could include inter-satellite crosslinks (within each of the two halves of the constellation) given the near polar orbit that is planned,” he wrote in a blog on his TMF Associates website.” You note, nothing was mentioned about inflight connectivity but watch this space.

We found a very quick synopsis on inflight Wi-Fi installations/pricing – Check it out. And speaking of inflight Wi-Fi, here is a pretty good primer on the subject.

It looks like UAL has selected to use iOS for their content distribution – United Airlines updates iOS app to support exclusive, free in-flight video content

If you plan to go to the APEX EXPO in September (15 – 18) here is your first notice from IFExpress – Registration

Wellington, FL | April 8, 2013– B/E Aerospace, Inc. /quotes/zigman/68804/quotes/nls/beav BEAV +0.87% , the world’s leading manufacturer of aircraft cabin interior products and the world’s leading distributor of aerospace fasteners and consumables, today announced that one of its airline customers plans to retrofit its fleet of Boeing 737 aircraft with B/E Aerospace modular lavatories. The airline also plans to retrofit its entire fleet of 737 aircraft, with B/E Aerospace Aircraft Ecosystems(R) vacuum toilets, and eventually to upgrade the cabins of its 737 fleet with B/E Aerospace LED lighting systems.

Through a combination of seat pitch adjustments, installation of B/E Aerospace lavatories, toilets and LED lighting, the airline plans to upgrade the interiors of its existing 737 fleet to more closely approximate the appearance and economics of their new to be delivered 737’s which will have both the B/E Aerospace modular lavatories and toilets as well as B/E Aerospace LED lighting systems. The lavatories incorporate patent pending, Spacewall(R) technology, which frees up floor space in the cabin, creating the opportunity to add up to six incremental passenger seats per aircraft. The B/E Aerospace lightweight LED lighting system which features adjustable lighting with full spectrum color capabilities, provides superior cabin ambiance and unprecedented lighting control.

“We are very pleased to announce our first 737 retrofit award for our modular lavatory systems. The B/E Aerospace lavatory is being developed in close coordination with Boeing and will become standard equipment for their new 737’s. Boeing believes that the B/E Aerospace lavatory provides significant advantages to the interior of the 737 aircraft. Our lavatory has an improved look and feel, provides more useable space, and is more comfortable for passengers. In addition, through the design of the lavatory interior and antimicrobial coatings on the interior surfaces, the lavatory is cleaner and more hygienic. We expect to begin delivering certified lavatories to Boeing in the second half of this year,” stated Amin J. Khoury, Chairman and Chief Executive Officer of B/E Aerospace.

“We look forward to working with our airline partners on retrofitting their 737 fleets with multiple B/E Aerospace products. These awards specifically underscore our reputation for innovation driven by our successful R&D programs,” continued Mr. Khoury.

Certain portions of the retrofit program are firm while other portions are under options. The first retrofit modular lavatories are expected to be delivered before the end of 2014. However, in addition to the modular lavatory and lighting retrofits, the airline has already begun retrofitting all of the airline’s 737 aircraft with B/E Aerospace composite Aircraft Ecosystems(R) vacuum toilets which are more hygienic, lighter weight, and require less maintenance than comparable toilets.

AIX Expo Hamburg, Germany | April 9, 2013– B/E Aerospace is pleased to present its premium line of award-winning galley inserts, the Essence™ Galley Inserts Collection. Since its debut at AIE in 2012, Essence has received accolades worldwide for its breakthrough design and innovative technology.

Beginning with the 2012 Crystal Cabin Award for Industrial Design and Technical Concepts, Essence has led the industry in design achievement awards. The Essence collection was honored with two prestigious International Design Excellence Awards (IDEA), a gold award in Commercial and Industrial Products and a silver award in Design Strategy.

Essence was also recognized by The Chicago Athenaeum: Museum of Architecture and Design and The European Centre for Architecture Art Design and Urban Studies with the 2012 GOOD DESIGN™ Award, the oldest and most recognized program for design excellence worldwide. B/E Aerospace’s latest recognition for Essence is the 2013 iF Product Design Award, one of the most renowned design awards in the world.

Demonstrated in a fully working galley, participants will experience Essence’s intuitive features and technology enhancements that make the entire collection easy to use, and creates a superior flight crew and passenger experience. Customers will benefit from weight reduction, increased power efficiency and reliability, and improved ergonomics and aesthetics. Essence features a suite of products including beverage maker, espresso maker, water heater, beverage cup, tri-mode refrigerator/freezer/rapid beverage chiller, steam and convection ovens, and bun warmer.

– Program Estimated Value In Excess Of $800 Million

Wellington, Florida | January 17, 2012/Business Wire/– B/E Aerospace, the world’s leading manufacturer of aircraft cabin interior products and the world’s leading distributor of aerospace fasteners and consumables, today announced that The Boeing Company has selected B/E Aerospace to become the exclusive manufacturer of modular lavatory systems for Boeing’s 737 Next-Generation family of airplanes, as well as the 737 MAX which is expected to be introduced into service later this decade. The estimated value of the award is in excess of $800 million, exclusive of retrofit orders, which are expected to be substantial.

The B/E Aerospace modular lavatory system (MLS) utilizes B/E Aerospace, patent pending, Spacewall(R) technology, which frees up floor space in the cabin, creating the opportunity to add up to six incremental passenger seats on each airplane.

The B/E Aerospace MLS will integrate the B/E Aerospace technologically advanced Aircraft Ecosystems(R) vacuum toilet, long-life B/E Aerospace LED lighting and B/E Aerospace tamper proof, state-of-the-art lavatory oxygen system. B/E Aerospace Aircraft Ecosystem(R) vacuum toilets have 25 percent greater reliability than existing systems and components can be replaced in a few minutes, as compared to up to an hour for existing systems.

“We are very pleased to have been selected by Boeing to become the sole-source supplier of lavatory systems for the Boeing 737 aircraft, the world’s best selling jet airplanes, and we look forward to continuing our long-standing relationship with Boeing to develop systems to enhance aircraft performance and passenger comfort. The B/E Aerospace advanced modular lavatory system utilizes proprietary technologies that increase cabin floor space resulting in increased aircraft passenger placements, as well as improved reliability and simplified and speedier maintenance, resulting in increased aircraft flight hour availability. Our lavatories are designed to increase airline revenue and yields while substantially improving the lavatory environment,” commented Amin J. Khoury, Chairman and Chief Executive Officer of B/E Aerospace.

“We expect to begin lavatory system deliveries for Delta Airlines’ new-buy 737s in the third quarter of 2013, and to ramp-up deliveries thereafter in an orderly fashion. We intend to substantially accelerate our investments in our modular lavatory program and on the related waste water system programs in order to be in a position to produce significant quantities of lavatory systems by the end of 2012. In addition, the Company is also stepping up its capital spending to support certain other SFE programs. As a result of increased capital spending for plant, machinery, equipment, and tooling, as well as inventory build to support these programs, the Company is adjusting its free cash flow conversion ratio guidance for 2012 to approximately 80 to 85 percent of net earnings.”

“This award is part of our strategic focus to substantially increase our revenue content per aircraft through creative, sole-source product offerings. With this award the value of SFE awards, which the Company has won, totals approximately $4.3 billion. Our current record backlog of approximately $3.45 billion, along with unbooked SFE awards, totals approximately $7.7 billion, also a record. We expect our SFE program awards to be generating up to approximately $400 million per year in revenues, exclusive of 737 lavatory retrofit programs, beginning in 2015. These programs provide us with excellent visibility with respect to future revenue growth,” continued Mr. Khoury.