• London School of Economics predicts move towards connected aircraft will transform
  aviation airline operations and safety into a strategic asset
• Connected aircraft could lead to 2.5% reduction in fuel burn per flight, equating to 21.3 million tonnes of CO₂ annually
• Connectivity has the power to save airlines $11 billion each year by reducing the impact and likelihood of delays, cancellations and diversions

London | June 19, 2018– The connected aircraft, enabled by satellite communications, has the potential to save airlines $15 billion annually in operational efficiencies and 21.3 million tonnes of CO₂ emissions by 2035, according to first-of-its-kind research from the London School of Economics and Political Science (LSE) in association with Inmarsat (LSE: ISAT.L), the world’s leading provider of global, mobile satellite communications.

Analysing current IATA data and primary research including industry interviews with airlines, regulatory agencies, developers and suppliers of aircraft equipment and software solutions, Sky High Economics: Evaluating the Economic Benefits of Connected Airline Operations examines a wide range of efficiencies enabled by the connected aircraft, and their associated benefits.

These efficiencies include fuel savings, a reduction in delays, innovations in maintenance processes, air traffic management enhancements, safety improvements and others. Based on current connected aircraft numbers, the research finds that together these efficiencies can generate up to a 1% reduction in the $764 billion spent by airlines each year in operating costs worldwide[1]. This equates to 20% of the forecast global aviation industry net profit in 2018 ($38.4 billion).[2] As the adoption of connected aircraft is set to rise exponentially, this cost saving is expected to double, saving airlines up to $15 billion globally by 2035.

Fuel savings and reducing environmental impact

Today, the airline industry is experiencing a period of exceptional growth, but the forecast doubling of air traffic by 2035[3] will require a more efficient use of assets to reduce fuel and CO₂ emissions, and increase airspace capacity while assuring safety. Optimising flight routes in real time, through IP-enabled communications that provide better weather information to the cockpit, yields an estimated 1% fuel reduction per flight. This equates to 3.39 billion litres of fuel, 8.3 million tonnes of CO₂ and $1.3 billion in fuel costs annually[4]. Adding savings accruing in other areas, enabled by enhanced communication to and from the cockpit, fuel efficiencies of 2.5% could be achieved: an annual reduction of 8.5 billion litres and 21.3 million less tonnes of CO₂. To put this into context, the current IATA global target for reducing CO₂ emissions is an improvement in fuel efficiency of 1.5% per year.

Predictive maintenance reduces turnaround times

Reducing turnaround times and preventing aircraft on ground (AOG) through predictive maintenance is a key priority for airlines; unplanned maintenance is responsible for approximately half of flight delays. Globally, airlines spent $62.1 billion in maintenance, repair and operations costs in 2016, a figure set to reach $90 billion by 2024[5]. The connected aircraft utilises real time data to create a live electronic tech log, in which flight performance data is digitally integrated with maintenance suppliers, allowing airlines and advanced algorithms to identify any maintenance required before the aircraft arrives at its destination. This research forecasts that if such technology halved maintenance costs, it could deliver annual cost savings of $5.6 billion.

Cutting flight delays

Global flight delays are estimated to cost the industry $123 billion each year[6], with weather responsible for nearly 70% of all delays[7]. Through improved navigation capabilities, the connected aircraft’s ability to avoid adverse weather and hazardous conditions could deliver annual cost savings of US$1.3 billion[8]. In addition, crew scheduling is currently responsible for 3% of delays[9]; a 66% reduction in such delays through enhanced connectivity could generate an additional $2.4 billion in annual savings. Where connectivity is fully utilised in disruption management to reduce the impact of delays, cancellations and diversions and enhance predictive maintenance, annual savings have potential to reach $11 billion.

Revolutionising air traffic management

As a result of enhanced satellite connectivity, significant change is underway in air traffic control (ATC) services. IP-enabled, secure real-time data exchange between aircraft and ATC is improving surveillance capabilities and reducing separation minima, allowing airspace to accommodate increasing passenger numbers and an increasing variety of aircraft. The benefits of migrating current radar-based systems to satellite-based navigation, automating aircraft position reporting and providing digital datalink communication between pilots and air traffic controllers could revolutionise air traffic management and save an estimated $3 billion annually.[10]

Dr Alexander Grous (B. Ec, MBA, M.Com, MA, PhD.), Department of Media and Communications, LSE and author of Sky High Economics said: “The forecast doubling of aircraft in the skies by 2035 will create both challenges and opportunities for the global aviation industry. IP-enabled aircraft are an essential step in facilitating growing demand for air travel, while meeting vital safety requirements. The study’s findings highlight not only the powerful commercial efficiencies for airline operations, but crucially, the resulting advantages for safety and environmental impact.”

Frederik van Essen, Senior Vice President, Market and Business Development, Inmarsat Aviation, commented: “This report demonstrates that the connected aircraft is a shrewd commercial decision; unrivalled access to real-time data is reducing airlines’ bottom-line operating costs while reducing emissions and improving safety. Not only that, enhanced connectivity is becoming an operational necessity as our skies become busier. With finite airspace available to accommodate increasing passenger numbers, airlines need to act now and consider the technology and infrastructure they need to future-proof their operations.”

Inmarsat is playing a key part in the digitisation of the aviation industry. Earlier this year, Inmarsat’s SB-S entered commercial service as the first and only global aviation broadband solution for operations and safety communications. SB-S allows airlines to utilise rich, real-time data to drive decision-making, improve operational efficiency and assure the highest levels of safety in the skies. SB-S delivers revolutionary new capabilities to the flight deck through the Electronic Flight Bag (EFB), from real-time weather reports to inflight aircraft health and performance monitoring.

Real-time Connected Aircraft data streams now available for business intelligence and analysis

• Accesses the most accurate, timely and granular flight data through satellite links
• Merges aircraft-generated position data with flight status, ground surveillance and weather
• Platform analyzes fused data for schedule planning & operations management
• Fully integrated with GEE’s Airview suite of applications

Los Angeles, CA | July 28, 2016– Global Eagle Entertainment Inc. (Nasdaq: ENT) (“GEE”), a worldwide provider of end-to-end connectivity and media to the airline, maritime and remote mobility markets, today announced the real-time integration of Connected Aircraft data streams with GEE’s masFlight airline operations data platform, which now features real-time flight tracking and satellite-transmitted surveillance data for accurate, complete and informative operational analytics.

Since its 2011 introduction, GEE’s masFlight has utilized ground-based radar and ADS-B surveillance systems to track and analyze airline performance, employing data from hundreds of commercial, government, and primary data sources. Information including flight schedules, flight status, radar and ADS-B surveillance, surface and atmospheric weather conditions, and airport surface operations is analyzed. Global airlines employ GEE to monitor operations, improve flight scheduling, benchmark against competition and power enterprise-wide business intelligence platforms.

With the integration of real-time data from the Connected Aircraft, GEE now provides airline executives and operations managers with the most current and complete views of flight performance. GEE can access information from it’s navAero aircraft interface devices, proprietary Airconnect Global in-flight connectivity systems, or third-party communications links. Flight profiles, including three-dimensional flight tracks, can be updated every second with full data encryption and segregation for security. Based on airline requirements, GEE can now also utilize real-time maintenance, in-flight entertainment and environmental data to supply business intelligence and improve operations workflow.

The cloud-based platform is accessible on a subscription basis with an available library of dashboards and visualization tools highlighting key performance metrics. masFlight integrates with third-party business intelligence systems including Tableau, SiSense and Oracle, and has a robust programming API for local system integration.

“More than 300 airlines worldwide operate fleets with over 20 aircraft and each faces the same challenges in collecting, fusing and analyzing the information they collect from their aircraft,” said Bernard Asare, Vice President of Connected Aircraft Systems. “masFlight leverages petabyte-scale cloud data processing and analytics capabilities to fuse real-time Connected Aircraft data with ground-based surveillance and flight status systems for the most accurate, timely and actionable operational visibility.”

• Forms Leading Provider of Satellite-Based Connectivity and Media to Global Mobility Markets
• Leverages Complementary Products, Technologies and Service Offerings Across Air, Sea and Land Verticals to Drive Growth
• Annual Synergies Expected to Exceed $40 Million

Los Angeles, CA | July 27, 2016– Global Eagle Entertainment Inc. (NASDAQ: ENT) (“GEE”) today announced that it has completed its previously announced acquisition of Emerging Markets Communications (“EMC”), a leading communications services provider to maritime and hard-to- reach land markets.

Combination Overview
The combination of GEE and EMC creates one of the world’s largest providers of satellite-based connectivity and media to the rapidly growing global mobility market. GEE has established a strong track record of successfully delivering media content and connectivity to airlines, while EMC has become a top provider of connectivity to maritime and hard-to-reach land markets. When combined with EMC, GEE benefits from significant economies of scale and an enhanced global infrastructure that enables it to deliver a comprehensive portfolio of products to customers.

With the combination, GEE possesses unique attributes that will provide additional opportunities to drive revenue growth and operational efficiencies, including:

• An unparalleled portfolio of products and services tailored to mobility markets, including global connectivity, media content in 47 languages, live television, travel and entertainment apps, user interface platforms and data capture and operations analytics tools;
• A global sales force and support organization that reaches all major mobility verticals including aviation, maritime, energy and remote locations;
• A satellite and ground-based network infrastructure that can provide customers connectivity and media across multiple frequency bands anywhere in the world;
• Proprietary, patented technologies that enhance the connected traveler’s user experience and reduce costs across market verticals;
• A diversified revenue base with over 400 customers, balanced between media and connectivity, and over half of all revenue coming from international markets; and
• Engineering, technical and managerial resources to effectively drive new product development, program management, product maintenance, and field support.

“This is a transformational acquisition for our company and in our industry,” said GEE Chief Executive Officer Dave Davis. “The combination of GEE and EMC enables us to provide our customers with a breadth of products and services unmatched in the markets we serve, whether in the air, at sea, or on land. GEE will continue to strive to be customer focused, product driven, and operationally excellent.”

Synergy Opportunities
GEE has a successful track record of integrating acquisitions and achieving synergies. With EMC, the Company expects to realize synergies of $15 million in 2017, growing to $40 million in 2018 and thereafter. A major source of savings is expected to come from network efficiencies, including the ability to optimize bandwidth costs through a consolidation of existing network assets, including space segment and ground infrastructure, as well as better capacity utilization. Savings are also expected through reductions in SG&A spending and the consolidation of facilities.

In addition to cost savings, GEE expects the combination to generate significant revenue synergies. Driving sales of GEE’s media, software, advertising and operations solutions products in the underserved maritime market are a key objective of the Company. GEE’s digital media team has had a long-term relationship with EMC and expects to launch new products to major cruise lines before year-end. EMC’s proprietary technologies are in use today to improve the connectivity experience and optimize bandwidth usage in the maritime market. GEE will soon introduce these technologies into the aviation market.

Corporate Structure
Dave Davis will continue to lead GEE as CEO. Abel Avellan, founder and CEO of EMC, will serve as President and Chief Strategy Officer of GEE. As part of the transaction, ABRY Partners, EMC’s largest shareholder, has a right to nominate a director to GEE’s board.

In conjunction with the transaction close, GEE has established three operational business units.

• The Media Business Unit delivers films and television shows, live TV, music, games and other content to aviation and maritime customers, including approximately 6,500 aircraft and many cruise ships currently served by GEE. Other products include digital and streaming media offerings such as the Airtime Content-to-Go application and the Entice streaming media system. Wale Adepoju will lead the Media Business Unit as Executive Vice President of Media. Previously, Wale served as Chief Commercial Officer of GEE.
• The Aviation Business Unit serves commercial airlines and private aviation using GEE’s proprietary Airconnect GlobalTM connectivity platform, which is currently installed on nearly 750 aircraft worldwide. The Business Unit also provides Navaero electronic flight bag (EFB) data interfaces and powered mounting systems, which are in place on nearly 4,000 aircraft today, as well as Masflight operational data analytics services. Joshua Marks, who previously led GEE’s Operations Solutions team, will lead the Aviation Business Unit as Executive Vice President of Aviation.
• The Maritime and Land Business Unit delivers connectivity and mission critical services to cruise and ferry lines, yachts, commercial shippers and land-based users such as non- governmental organizations and mobile network operators. Through this transaction, GEE has acquired a strong maritime customer base, serving over 1,500 vessels and 100,000 cruise ship cabins. In addition to overseeing certain corporate functions at GEE, Abel Avellan will lead the Maritime and Land Business Unit.