Chicago | March 8, 2017– Gogo (NASDAQ: GOGO), the leading global provider of in-flight broadband connectivity and connectivity-enabled services to commercial and business aviation, has reached a major milestone by installing its 3,000th commercial aircraft with in-flight connectivity.

Today, the company has 3,000 commercial aircraft and more than 4,200 business aircraft, totaling 7,200 aircraft installed. More than 130 of the 3,000 commercial aircraft are now installed with Gogo’s industry leading 2Ku technology that leverages Gogo’s global satellite network.

“The demand for in-flight connectivity continues to grow at a rapid pace and we are quickly moving beyond connecting passengers to connecting flight attendants, pilots and eventually components on the planes themselves,” said Michael Small, president and CEO at Gogo. “To meet this demand, Gogo has invested in the best broadband networks to meet the needs of global aviation — no matter the size of the aircraft or where that aircraft flies.”

Most of the 7,200 aircraft are connected using Gogo’s North American ground network, but an increasing number of commercial aircraft are now flying on Gogo’s global satellite network.

2Ku relies on the new low profile, high efficiency Ku-band satellite antennas that outperform other connectivity solutions in the global aviation market. Since the announcement of Gogo’s 2Ku technology, 12 airlines representing more than 1500 aircraft have signed up for the service. Nearly all of these aircraft are expected to be installed by the end of 2018.

“Whether an aircraft is flying on our global satellite network or on our North American ATG network, we are delivering industry leading performance in terms of coverage, cost, capacity and reliability. With high-throughput satellites being added to our global network and an upgrade being made to our ATG network, both networks will bring even better performance in 2017 and beyond,” added Small.

• Gilat’s PAA Combines Latest Technology With Standard Mass-Production Techniques to Enable Cost-Effective Broadband Connectivity Including Aboard Commercial Aircraft and High-Speed Trains

Petah Tikva, Israel | December 14, 2015– Gilat Satellite Networks Ltd. (NASDAQ:GILT) (TASE:GILT), a worldwide leader in satellite networking technology, satellite mobility solutions and services, announced today that it signed a development agreement with a major aerospace systems integrator to further develop both its Ku-band Electronically-Steered-Array/Phased-Array Antenna (ESA/PAA) and Ka-Band technologies.

“The growing demand for broadband in-flight connectivity over satellite has not yet been met with a high quality and affordable phased-array antenna. This is what Gilat will bring to the market,” said Moshe (Chico) Tamir, Corporate VP and Head of Gilat’s Strategic Initiatives Division.

“Our unique technology, when combined with widely-used mass-production techniques, results in affordable ESA antennas with highly reliable tracking capabilities, built-in amplification and no moving parts. The scalable design of almost any array size allows for the mounting of our ultra-low-profile antennas, on wide- and narrow-body commercial aircraft, regional and business jets, and high-speed trains. The antenna can even be embedded into a vehicle’s roof top.
“Our ESA/PAA technology can also provide affordable satellite connectivity solutions for new markets, such as the Internet of Things (IOT), Machine-to-Machine (M2M) and the Connected Car,” Mr. Tamir added.

You have to like the Australians! Accordingly, when we interviewed the digEcor team we walked away with a lot of information about the products, the people, and the purpose. Consequently, we thought our readers might like a bit of “down under” in IFExpress this week!

According to digEcor’s CEO, David Withers: “Yesterday (APEX opening day) was the best opening day for us at an APEX show… with a good, solid flow of airlines visiting our booth.” He also noted that the airline visitors must have found some interesting new products as they asked a lot of questions. And, after all, that is what trade shows are about. This also says a lot for the new, full offering from digEcor. One of their goals has been to offer a complete ‘Integrated Flight Experience’, a favorite term of David’s for as long as we have known him. Partially, this is why they have developed LED cabin lighting, in-seat power, portable entertainment devices, GLIDE their embedded seat centric system, content services, and ENGAGE their crew management software (air and ground). The booth display said it all… the complete Integrated Flight Experience. Let’s look at each one, and we note that each item is summarized on their website. Furthermore, the subtitle is ‘The Integrated Flight experience’ which says a lot more that the words themselves – digEcor is looking at ‘big picture’ integration and their products prove that.

GLIDE: Without a doubt, digEcor’s signature embedded inflight entertainment solution is GLIDE. It is functional, easy-to-maintain and low-cost. Supporting 1TB of content and USB power and as standard, 110V in-seat power, 8, 10, 12, 15 and 21″ screens in 16:9 format. Glide offers a reliable full feature solution and is available today. As Mr. Withers noted: “The most flexible and lowest cost embedded IFE system available. It is now FAA certified and flying.”

GLIDE Features: 1) Seat Back, Arm Mount or Monument Mount Screens available in 8, 10, 12, 15 and 21″ in 16:9 format 2) 2.1A USB Power standard 3) Seat box powers 6 screens and provides 4 x 110V outlets or the new lighter weight and smaller seat box powers 4 screens 4) Single LRU Cabin Management Terminal provides a 10″ touch screen crew interface and contains all the required A429, PA, RS485 and discrete inputs and outputs and replaces the entire VCC 5) Typical installations are – Modular design, scalable by features and fit

PORTABLES: Portables Features: 1) 8″, 10″ and 12″ screen sizes 2) PCAP (Capacitive Touch) 3) Optional Camera 4) Gig Ethernet for content uploading (In station) 5) 5V USB input for inflight charging 6) Configurable storage (8GB to 1TB) 7) SD card optional for fast content load (1GB to 128GB) 8) Quad core 1.1GHZ processor 9) Configurable 1GB-8GB DDR RAM 10) Light sensor for back light dimming 11) 12hr / 18hr batteries available 13) Smart battery with status. (image)

IN-SEAT POWER: In-seat power is available as 5V USB at a full 2.1amps for iPad charging and 110V for laptops (inseat power display image).

USB: 1) 5 Volt, 10W (2.1A) full charging outlet at each seat 2) Typical weight per passenger 0.4kg (0.7lb) 3) Typical additional seat weight per triple 0.7kg (1.5lb)  4) Optional Passenger Service System (PSS-Reading Light and Call Bell) functionality for wide-body aircraft 5) Each outlet switchable OFF, Low Power (200ma) and Full Power (2.1A) to enable ancillary revenue opportunities

LAPTOP: 1) 110V 60Hz laptop power 2) 70W per outlet 3) 4 Outlets per GLIDE seat box

CABIN LIGHTING: digEcor’s new LED cabin lighting solution is an easy, economical way for airlines to create a memorable flight experience. The solution is controlled by cabin crew, is easily installed and reduces power consumption. Passengers can access more than 4 billion colors through the GLIDE embedded IFE system and easily manipulate the color and intensity to create a restful space or enhance their brand association.

Cabin Lighting: 1) Replacement modules for most existing light assemblies 2) 4 LED matrix to maximize color depth and intensity 3) Full control of color and intensity via GLIDE CM 4) Fully programmable transitions between colors 5) Independent ceiling and sidewall control 6) Weight saving 7) Up to 30% reduction in power 8) Long life – 5 year warranty on all digEcor hardware

It is also worth noting a new feature of this solution… digEcor now offers the capability to take their custom light color and intensity meter, which measures light in 2 axis, forward and above, giving the ability to record sunsets or sunrises or any transition and reproduce it in the cabin by displaying the horizontal axis on the side walls and the vertical axis on the ceiling. Thus giving the ability to replicate sunsets and sunrises that are relevant to the sector passengers are flying on the airline’s network. For example, a night flight from London UK to Brisbane Australia will start with a transition to the UK sunset and wake passengers up with a sunny Australian sunrise. “And what a great place to wake up in the morning, noted Mr. Withers!”

ENGAGE SOFTWARE: This solution provides value to the customer, inflight crew and ground staff. It captures, reports, synchronizes and efficiently sends data in real-time across the entire customer journey. This empowers every member of airline front-line staff to deliver remarkable customer experiences every day. With three easy to use modules, ‘Cabin’, ‘Forms’ and ‘Ground’ it engages the staff in a quick, easy and manageable way. ENGAGE offers vast benefits to airline business including improved communication, proactive customer recovery, operational efficiency and streamlined reporting.

CONTENT SERVICES: From selection, licensing, encoding, encryption, integration, quality control and delivery. Whether or not airlines purchase their handheld or embedded solutions, digEcor wants to help deliver the most memorable entertainment experience. They can customize any needs around content for airlines with a full service turnkey solution or a de-bundled approach across the global network.

By way of history, David and his team has been “…getting hardware and software certified and flying,” so he told IFExpress. Their branding experiences have taught them; “The experience is about the journey – and passengers want a seamless experience,” he noted. For example, ENGAGE, rebranded as RED for Qantas is now used in their lounges as well as on the plane. “But the real key,” he said, “is applying technology correctly… and that is what helps facilitate the experience.”

It is no surprise that digEcor is aviation experience oriented. It’s CEO, started in the aviation business when he was 13 washing and fueling airplanes (. His career has been entirely aviation focused with David working at companies like Qantas, Smiths Group (now GE) and Boeing, mostly in senior leadership positions. We asked David about his aviation background and he told IFExpress; “I love our industry and have worked in it since I was 13 when I started washing planes at the local aeroclub. I have been lucky enough to spend my entire career in aviation and over that time have fixed, designed and flown aeroplanes of all shapes and sizes. I started the formal part of my career in an airline (Qantas) where I worked initially as a mechanic and later as a designated engineering representative once I’d completed my engineering degree part time in my evenings. It was at Qantas where I first got involved with IFE initially being responsible for duplicating the endless tape cassettes, which gives away my age! Over time I led the integration of the domestic and international entertainment products and established the first near live news service using satellite to distribute live news to all the Qantas domestic airports where we dubbed it to tape and manually loaded it on each aircraft twice a day. This was cutting edge technology in the mid 1990’s. I moved from Qantas to Smiths Aerospace, then Europe’s largest manufacturer of aircraft components and systems where I led building of their Asia Pacific business as its managing director. From there I moved to Boeing as president of its Australian operations with around 5,500 employees. As I said I’ve been very fortunate in my career.”

More to the point, he told IFExpress that, “Every one of our product offerings is either certified or in the process of FAA certification!” David Withers and his teams, both in Australia and Utah, have got the right stuff. In fact the boss put it better than we could: “It never occurs to us not to go and do something.” If this year’s booth and products are any indication, they will not stop surprising this industry!

---

Perhaps one of the cleverest ideas to come out of Seattle last week at the Aircraft Interiors Conference was the floor layout… and it will probably be repeated. The AI folks placed the conference seminar stage and floor inside the exhibition hall and surrounded it with display booths . What really worked both days was the fact that your could tour the booths and if you saw a presentation that interested a floorwalker, it was easy to duck in. But beyond that, 3D printing was the big deal and there must have been 10 booths covering one phase of the process or another (here are some parts made by 3D printing). Further, the following technologies seemed to be in the forefront, seating related products, seats, thermoplastic products, cabin lighting, seating comfort products and technologies, plating (especially plastic), reflective technology, USB application technologies, precision machining, materials and mixing technologies, fabrics, NRC manufacturing, and a lot of technologies and products that IFExpress does not feature – mechanical engineers heaven. The newer gel honeycombed products are a real seat pleaser (pun intended) and we look forward to testing them on a flight – the secret? Simple, it’s silicone honeycomb with breathing holes in the cell walls. Great stuff! Another surprise were the 3D plastic printed products from Stratasys. They showed a line of ECS ducting that was 6” in diameter and promised a cheaper and better product than the older manufactured tubing. One company demonstrated their 3D printing capabilities by “printing” a ukulele body out of plastic, and it played and sounded quite well.

From a power point of view, the folks from Astronics showed up with more of their tray table related products in view while a company called True Blue Power demonstrated a 28VDC power supply that delivered USB 2.1 Amps into a total of 10 USB outlets, also of their design. And what would a show that had lighting be without Olaf Schultz of Schott? He brought two lighting developments of interest – Heliojet White and Spectrum strips that contain a large number of white or color-capable LED’s, each LED with it’s own color/brightness sensor for balance… not to mention their star dotted ceiling panels the is comprised of a powerful LED light with what appeared to be over 50 individual fiber optic outlet “stars” in the ceiling panel. In the same booth, Christian Lierow demonstrated Lufthansa Technik’s reflective lighting solutions. From a color point of view, they easily showed 20 reflective colors and something we had never seen before – curved reflective floor markers.

All in all, the show and the speakers were very interesting and a lot of new technology was on display. We were a bit sorry that the expo wasn’t as big as the previous years, but there appeared to be plenty of traffic on the floor.

“I was very impressed with the technical know-how of the exhibitors at this years Aircraft Interiors Expo Americas event this week in Seattle. I was able to engage in in-depth discussions with attendees about product details that will definitely help us specify these products in future modification programs,” noted John Courtright. Here is a link to the Aircraft Interiors floor plan for the Seattle event and it should give you an idea about the layout.

Check out the floor layout, you will see this concept in the future – it works!

---

Boeing’s famous aviation pioneer personality, Dick Taylor, passed away recently – here is a bit about the man and his remembrances.  (And yes, I worked for him too! TJW)

---

Bill Baltra sent us this link to a YouTube video about a flying Gogo 2Ku System running 40 inflight devices – 2Ku Flight testing on N321GG with 40+ streaming video devices. ‬ There will be more on this one.

---

Ron Chapman says: “KONNG will be king of the connectivity solutions,” but you be the judge at NBAA!

Itasca, IL | April 14, 2015– Gogo Inc. (NASDAQ: GOGO), a leading global aero communications service provider and the world leader in wireless in-flight entertainment, announces the launch of its revolutionary crew messaging service: Crew Connect for Airline Operational Services.

Crew Connect is a dynamic messaging platform that allows flight crews to communicate by voice or text messaging with each other and with ground crews while the aircraft is in flight. The service is an application-based service, available on Android, Apple and Microsoft devices that offers group messaging, event-based alerts, multi-media messaging and message tracking.

“Today, numerous airlines are issuing their flight attendants and pilots Wi-Fi enabled tablets and smartphones, which are capable of utilizing aircraft connectivity. Crew Connect leverages that trend,” said Ash ElDifrawi, Gogo’s chief commercial officer. “The only other way for cabin crew to communicate off the aircraft is through traditional flight deck voice or datalink (ACARS) systems, which have historically been difficult and expensive to utilize for in-flight cabin crew communication. This service will give airlines an inexpensive way to keep crew connected and informed while in the air, with the ultimate goal of helping airlines improve efficiency.”

The technology is based on leading IP messaging platform technology. The service will include features like: Dynamic call grouping, which allows the airline to send communications to an entire aircraft, fleet or region; status notifications like “message read” and “on aircraft”; and hot button calling to airline-designated sites such as dispatch, scheduling and maintenance.

“Although optimized for Gogo’s network, Crew Connect is also available to airlines with alternative connectivity suppliers,” indicated Andrew Kemmetmueller, Vice President of Airline Operational Services and Platforms. “The service is designed to maximize the communications value of any broadband link for the airline, bringing improved functions on any connected aircraft.”

“Crew Connect is another example of how Gogo is driving industry-leading innovation on its in-flight network to unlock the potential of the connected fleet,” added ElDifrawi. “We will continue to work with airline partners to create products and service that help them achieve their individual goals from an operational perspective.”

• Pioneering aircraft cabin lighting company seeks to enhance local customer service and develop a distinctive regional brand

Shanghai, China and The United Kingdom | April 10, 2015– STG Aerospace, a world-leading pioneer in aircraft lighting technologies, is delighted to announce that it has established an official presence in China with the launch of a Wholly Foreign Owned Enterprise (WFOE), STG Aerospace (China) Co., Ltd. based in Shanghai. This new initiative is a reflection of the importance of China as a market for STG Aerospace. According to a recent IATA report, the country is expected to overtake the United States as the world’s largest air passenger market by 2030.

Based in the UK, STG Aerospace also has a manufacturing facility in the US. STG’s CAAC, FAA and EASA-approved product range includes: safTglo®, the pioneering and market-leading photoluminescent emergency floor path system currently installed on over 9000 aircraft worldwide; safTsign™, the leading brand of photoluminescent emergency and informational signage developed for commercial fixed-wing and rotary aircraft; and liTeMood®, a plug-and-play, programmable, LED mood lighting system designed specifically to retrofit commercial aircraft cabins, both to enhance the passenger experience and improve airline metrics.

The new office will enable STG Aerospace to offer an even higher level of service to their growing list of customers for safTglo® and safTsign™ products, including China Eastern Airlines, Shenzhen Airlines and China Southern Airlines. In addition, its presence in the country will provide the company with a base for the ongoing development of cabin lighting tailored to the specific needs and tastes of the Chinese airline passenger.

Nigel Duncan, STG Aerospace’s Chief Executive, commented: “We have been active in the Chinese market for the last decade and are committed to a long-term future in the country. This new subsidiary will not only help us to enhance the service we provide for our Chinese customers, but also enable us to involve local companies and local people in the delivery of innovative, research-based cabin lighting solutions that are not just the best in the marketplace, but the best, specifically, for our Chinese customers”.

It seems that each trip we take on an airliner, we have an increased need for connectivity. Whether it is a greater occurrence of email updates, more Wi-Fi streaming video, or just general web surfing. One supposes this is just human nature, or is it something else? On ground wireless usage habits tend toward greater frequency over time and one could guess this is also true in the air if for no other reason than from inflight boredom and/or stress. Regardless of the reason, people want a similar experience in the air as on the ground, because they are not on the ground. Want proof? When was the last time you heard: “I wish the Wi-Fi here was as good as on my last flight?” Frankly, what used to be called fear of flying to the millennials is now called fear of changing Wi-Fi providers to one that is not as good as the one(s) in their ground-life. For frequent travelers it used to be a continuous search for the fastest trip, but today, as one flier told IFExpress, “It is who has the fastest Internet Wi-Fi.”

This demand trend is obviously what the Inmarsat folks had in mind when they developed the spot beamed Inmarsat GX solution that, we note, is roughly two thirds implemented today (for the GX system one satellite is up and operational, a second is up and testing, and the third is being ready for launch next quarter). (See news release) According to Inmarsat, GX Aviation will deliver up to 50 Mbps to an aircraft, and in their words, “It expands the possibilities for in-flight entertainment to real-time TV and TV on demand, as well as, email and web browsing at a much faster speed.” And here is the kicker – GX connectivity will be available almost anywhere in the world, and almost anywhere an aircraft can take you. In case you have forgotten, here are the service bands available for satellite connectivity and the common operating frequencies that define them.

Obviously Ka-band made sense from a signal bandwidth and equipment size point of view, especially when an airborne aircraft is involved… as the frequency goes up, so does bandwidth, and size goes down, but we note, rain attenuation goes up. Above 20,000 feet in altitude, rain attenuation is not a big issue, or at least is, a minimal one. The primary atmospheric region affecting Ka-band communications is the troposphere, which extends from the earth’s surface to an elevation of approximately 50,000 ft. Virtually all precipitation occurs within the troposphere, as it contains about 99% of the water vapor in the atmosphere and the most of that is below 25,000 feet in altitude.

Here is a little Wikipedia help if the Ka-band is new to you: “The Ka-band (“kay-ay band”) covers the frequencies of 26.5–40 GHz,[1] i.e. wavelengths from slightly over one centimeter down to 7.5 milimeters.[2] The Ka-band is part of the K band of the microwave band of the electromagnetic spectrum. This symbol refers to “K-above”: in other words, the band directly above the K-band. The 30/20 GHz band is used in communications satellites, uplink in either the 27.5 GHz and 31 GHz bands,[3] and high-resolution, close-range targeting radars aboard military airplanes.” From a bandwidth data perspective, and based on frequency, Ka-band has 5 times the bandwidth of C band, and roughly 2.5 time that of X Band. But note, The Ka-band is more susceptible to rain attenuation than is the Ku-band, which in turn is more susceptible than the C band, and experts agree, rain fade become more an issue above 11 Ghz, but if you are flying at 35,000 feet talking to a satellite in geostationary orbit.

The first GX Aviation Inmarsat satellite was launched back in December of 2014 and today covers the Indian Ocean region. A recent announcement of the second launch and orbit insertion/testing was made a couple days ago. On March 4, 2015 Inmarsat and Honeywell successfully tested over-the-air performance for Honeywell’s JetWave MCS 8200 onboard aircraft hardware on Inmarsat’s Global Xpress (GX) satellite network. This successful test signifies that the next generation of truly global high-speed in-flight connectivity for passengers, airlines and operators is becoming a reality – with one more satellite launch to go for global coverage. GX is already operational in the Indian Ocean Region for government, maritime, and enterprise customers over the first Global Xpress satellite, which was launched last year. The successful launch of the second satellite in February 2015 means Inmarsat’s Ka-band network now covers the Americas and the Atlantic Ocean Region. Scheduled for launch in the second quarter of 2015, the third satellite will cover the Pacific Ocean region; completing the Global Xpress network and providing worldwide spot beam coverage.

As to what testing occurred, here is the news release note: “During the testing, the team was able to demonstrate how Inmarsat’s high-speed; GX Aviation network can support multiple file transfers and video streaming– confirming that passengers will have the same Wi-Fi experience while travelling at 40,000 feet as they would on the ground. Success in this round of testing, conducted from Honeywell’s Tewkesbury, United Kingdom facility means Inmarsat can now start the higher data rate testing. This is not only a milestone for the whole GX Aviation programme, but it’s also a great demonstration of what GX Aviation brings to the table,” said Leo Mondale, President, Inmarsat Aviation. “We are delighted with the performance shown by this round of testing. Both the GX network and Honeywell’s terminal have met and exceeded our high expectations. We’re another step closer.”

With regard to aircraft hardware, the supplier told us: “Honeywell’s JetWave MCS 8200 terminal, which enables aircraft to connect to Inmarsat’s Global Xpress satellite network, is in full certification testing, proceeding through DO-160 environmental and electromagnetic interference certifications, in preparation for the start of flight testing in the second quarter of 2015. In addition, work is being done to ensure that the equipment is available for installation on new Boeing aircraft, Airbus A350s and Bombardier’s Global family of business jets.” As a result, we decided to ask the folks at Honeywell a few questions about their product and the program in general:

Q. Please describe the Inmarsat GX solution from your viewpoint.

In 2012 Honeywell signed an exclusive agreement with Inmarsat to provide the SATCOM hardware for its Global Xpress Ka-band service and the program has been in development since then.

The Global Xpress constellation is comprised of three satellites, two of which are already in orbit and the third is slated to launch later in 2015, and will use Ka frequencies to deliver broadband speeds of up to 50 Mbps downlink around the world.

The Inmarsat-5 satellites operate with a combination of fixed narrow spot beams that enable Inmarsat to deliver higher speeds through more compact terminals, plus steerable beams so additional capacity can be directed in real-time to where it’s needed.

Q. Could you describe the tests in a bit more detail?

Initial tests are complete, and considered successful. We are still analyzing the full results.

Q. Were any tests made of the roll angles to determine angular signal sensitivity… was it as expected?

We have performed testing on a motion table to validate that the antenna is oriented correctly during expected aircraft movement. Full aircraft-level testing will be done during test flights in a few months.

Q. How can IFExpress readers get more information on the product – newsletter, email updates, etc.?

Your readers can read more about Honeywell here.

Q. Do you have a schedule of the whole program (3 satellites I believe) and when might the first system be installed and available?

Inmarsat launched the first of three satellites for the Global Xpress constellation in late 2014, the second satellite was launched in February 2015 and the third will launch in Q2 of 2015.

Q. Does Honeywell have any GX product customers to date?

• We have received great interest from the market.
  The GX system is now offered as a connectivity option along with the Thales In-Flight Entertainment system on the A350 and has been chosen by Qatar Airways for their upcoming deliveries with service being provided by OnAir.
• Vietnam Airlines has selected GX Aviation Connectivity along with Thales IFE on their upcoming A350 and 787 Deliveries with service being supplied by Gogo.
• Air China and Honeywell signed an MoU to test GX Aviation on their A330 Aircraft
• Bombardier Business Aircraft will be the launch business aircraft manufacturer for Honeywell Aerospace’s JetWave Ka-Band satellite connectivity system.

Q. We assume that Honeywell’s management is pretty excited about this product?

“The successful testing of Honeywell’s JetWave terminal proves that we are truly making global high-speed in-flight Wi-Fi a reality,” says Carl Esposito, Vice President of Marketing and Product Management, Honeywell Aerospace. “The combination of Honeywell’s airborne hardware and Inmarsat’s GX Ka-band global network will allow for a seamless experience of connectivity and capability from the time you walk on the airplane until you get off on the other side of the world.”

Q. Can you tell our readers a bit more about Honeywell?

Honeywell Aerospace innovates and integrates thousands of products and services to advance and easily deliver safe, efficient, productive and comfortable experiences worldwide. Honeywell has been in the aviation industry for more than 100 years providing technology, mechanical components and services for the commercial aviation, business aviation, defense and space industries.

Honeywell has created the state-of-the-art integrated Aircraft Environment Surveillance System for the Airbus A380, and our advanced flight management, power distribution, pneumatic, and landing systems will help A380 operators reach new heights of performance and efficiency.

We are a leading supplier of products and systems for Boeing commercial airplanes, and our integrated avionics system for the Boeing 777 sets a new technology and reliability standard. Today, we are part of the team working to define technology concepts for the next Boeing airplane, the super-efficient 777.

• Strong air transport industry fundamentals underpinning finance market health
• New participants attracted by decades of predictable, attractive returns
• Export credit usage to continue at historically low levels

Chicago, IL | December 9, 2014– Boeing [NYSE: BA] says decades of predictable, attractive returns have led to unprecedented diversity, efficiency and volume of financing for commercial airplanes, with airlines and lessors set to benefit from increased competition among lenders and historically low interest rates in 2015.

The seventh annual Boeing Current Aircraft Finance Market Outlook, released today, forecasts the sources of financing for new commercial airplane deliveries in the coming year and the industry’s overall delivery financing requirements for the next five years.

“The strength we’re seeing in aircraft finance is largely the result of a healthy and balanced global demand for new aircraft, which is being driven by anticipated growth in passenger traffic, record airline profitability and the continuation of a replacement cycle to improve the fuel and performance efficiency of the global fleet,” said Tim Myers, vice president and general manager Aircraft Financial Services for Boeing Capital Corporation.

“The stable performance of aircraft finance and investment over the past few years – particularly through the global financial crisis – is attracting new participants and is driving diversification both geographically and in terms of funding sources. That’s good news for airlines and lessors who will continue to have access to highly efficient financing,” he added.

Boeing forecasts strong demand for new commercial airplanes in 2015, resulting in about $124 billion in deliveries across the industry.

“That’s doubled since 2010. And while we expect to see the growth moderate over the next few years, we’re still expecting annual airplane delivery finance requirements to be around $156 billion in 2019,” Myers said.

Key elements of the 2015 finance market outlook include:

• Lessors should continue to drive innovation in aircraft finance, supporting about 40 percent of all deliveries
• Funding for deliveries is expected to be balanced among cash, commercial bank debt and capital markets
• Capital markets are expected to support nearly one third of new deliveries
  Reflecting the current strength of commercial markets, export credit usage should continue at historically low levels
• Investor demand and lessor portfolio sell-down initiatives should support continued interest and investment in the used aircraft market

In addition to the forecast for the coming year and projections of five-year delivering financing requirements, the 2015 report made adjustments for two notable trends over the past three years: bank debt liquidity was higher than expected, and export credit usage declined faster than was previously forecast.

The 2015 Current Aircraft Finance Market Outlook is available at www.boeingcapital.com/CAFMO