AIX Hamburg and Italy | April 11, 2018– Your breath shortens. Beads of sweat emerge at your temples. Your eyes scan the business class, when you flight in economy for a long Range flight.

But Now, that panic give way to placidity. In fact AVIOINTERIOS is glade to present “MICHELANGELO” our New Economy seat for long range trip. MICHELANGELO increases the experience of the flight, without compromises.

MICHELANGELO increases the comfort, gives more space at the passenger belongings, increase the multimedia experience with a video of 13.3”, the biggest in the market in this segment, but at the same time the innovative engineering concept let to reduce weight about of the 7% , and the maintenance cost.

Faithful to the role of ambassador of the Italian style in the aircraft cabin interior all it is concentrate in a beautiful, distinguishing, and elegant Italian Design.

AVIONTERIOS is sure that MICHELANGELO will be pushing the standard of the Long Range economy class higher in Comfort, Design, Technical Innovation, Quality and will exceed the passengers, and the airlines expectations.

SEATTLE, April 09, 2009 — Boeing [NYSE: BA] today announced that it will adjust its twin-aisle airplane production plans for 2010 due to significant deterioration in the business environment for airlines and cargo operators driven by unprecedented global economic conditions.

Monthly production of the 777 will decline from seven to five airplanes per month beginning in June 2010. Boeing will also delay previous plans to modestly increase 747-8 and 767 production. No change is being made at this time to the 737 production rate.

In addition, the weak global economy has contributed to significant declines in the escalation indices that affect forecasted pricing for commercial airplanes already ordered.

The production decisions and unfavorable price escalation are expected to reduce Boeing’s first-quarter 2009 net earnings by approximately $0.38 per share. Because the 747 program is currently in a loss position, the reduced earnings associated with the factors above will be recorded for most units in the 747 backlog. That impact, somewhat offset by a refinement in cost estimates, accounts for approximately $0.31 per share of the first-quarter charge. For the other commercial programs, the impact will be reflected in lower margins on deliveries as they occur, including an estimated $0.07 per share net earnings reduction in the quarter.

The company will update its 2009 guidance when it reports first-quarter results on April 22.
“These are extremely difficult economic times for our customers,” said Boeing Commercial Airplanes President and CEO Scott Carson. “It’s necessary to adjust our production plans to align supply with these tough market conditions. We are in close contact with our customers as we continue to monitor this dynamic business environment.”

The production rate decisions announced today solely reflect delivery deferrals requested by customers in response to unprecedented declines in global passenger and air-cargo volumes. No 767, 747 or 777 orders have been cancelled this year. Boeing’s commercial backlog of more than 3,500 airplanes remains strong and well-diversified in terms of airplane models, geography and customer business models.

With tough IFE times ahead, we have been asking industry experts for their view on what is happening and going to happen in out corner of the aviation business. This week, we were looking for some input from an expert who has been there — been there by way of product development, engineering services, system development and content distribution. We found that person in Joe Renton. 

IFEXpress: How can IFE companies remain viable at times of significant downturn — such as now? IFEXpress put this question to Joseph Renton, chairman and CEO of The IMS Company, an IFE solutions provider and the leading provider of IFE portables.

Renton: “Many successful companies have been created, and many have thrived in challenging economic times. Economic adversity often inspires us to be more innovative — to take chances, to look at problems and solutions differently, and try new ways of doing things. As a solutions provider, IMS is accustomed to innovating and trying new things, during both good and bad times.”  

IFEXpress: An example?

Renton: “American Airlines showed unique vision in utilizing an embedded portable solution in a premium class cabin, after Alaska Airlines had demonstrated similar vision in opting for the very first portables solution in IFE. These are only two of many decisions that do, and will, shape tomorrow’s IFE solutions, not just the portables business. Our decision to leverage COTS (consumer off-the-shelf) technologies while everyone else was making big investments in proprietary products is yet another is approach to finding unique and compelling ways to apply portable technologies to the cabin, including semi-embedded approaches with portable products.” 

IFEXpress: So, these are challenging times, what new ideas are you trying?

Renton: “First, we will always maintain our fiscal responsibility and innovate within our means. Having said that, everyone on our team is looking at ways to apply current and leading edge technologies in more cost effective ways. For instance, how do we apply our core technologies in ways that airlines can more cost effectively deliver passenger entertainment. How do we deliver feature rich entertainment for less. In that same spirit, how can we create more cost effective and reliable content delivery mechanisms in support of airlines’ and content providers’ requirements. Finally, and this isn’t new, we are proceeding through some significant self evaluation and identifying ways to reassert our corporate basics so that we can be assured that our own house is in order. In times such as these, so long as we continue to nurture a collaborative environment, our staff has always provided us with the innovations that we need to continue our success.”  

IFEXpress: OK, that’s how you may behave in this environment — what advice do you have for buyers?

Renton: “The IFE industry at times resembles the fashion industry — buyers fall in love with the latest trends, new ideas that catch their eye, but some of which tend to not hold up very well over the passing of time — interesting solutions that just don’t include a viable business model.  Do you remember when everyone was in love with the idea that onboard gaming was going to generate enough revenues to pay for all IFE and turn a big profit?  Over the years we’ve heard expectations that telephone usage, advertising, device rentals, duty free sales, and onboard sale of entertainment would fully amortize IFE, or that onboard delivery of satellite television would completely replace all other IFE. It’s particularly easy to fall in love with new ideas that come with the promise that someone else will pay for them or that they will pay for themselves. But such expectations have yet to be fulfilled. As sellers we have to be innovative and imaginative while keeping our heads — and that’s good advice for buyers as well. Those who buy and sell solutions that are both innovative, cost effective and based in fiscal sanity will be those who likely survive in this environment.”

In case you were the only one that did not get the memo, in-flight entertainment along with the rest of the world aviation business, is going to hell in a hand basket. As we watch layoffs increase (Approx. 140,000 in the US so far in 2009), the resultant lull in travel will be a drag on RPM’s this year and will extend into next year as well. So, we asked John Courtright, about his take on the industry. John has over 25 years of aviation finance and business development experience at airlines and aerospace firms – Here is what he said:

“Is United the next PanAm? Recently, United Airlines announced it lost $1.3B on $4.55B in revenue. That means for every dollar taken in, UAL lost nearly 29 cents. Accordingly, in a separate press release, UAL says they will eliminate 1,000 salaried/management jobs out of 2,500, which is some 40% of the mid-management or administrative positions. Somebody has to run the computer systems, supervise the agents, do “ticket lift” (headquarters accounting of the fare) and a myriad of other duties. I don’t see Directors or VPs, pilots, mechanics or F/As doing this boring but necessary work. These two announcements, taken together, do not bode well for UAL. There is only a slight reprieve in that fuel prices are projected to be lower for the next few months (current spot is $41/bbl and Feb ’09 futures are $32.79). That won’t last long.

Also, I note that Southwest (WN) reduced their 737NG delivery rate by about 35%-40% over the 3 year period 2010-12 and gradually picked it back up in 2013-14. I say this is an indication of SWA’s projected passenger demand (i.e. economy?) and they are doing capital budget realignment accordingly.

The two UAL data points and the one SWA data point are related. If I’m right, then retrenchment is the name of the game for the next three years in the U.S. airline market and it further suggests that UAL, out of bankruptcy only 2 years ago (2/06), may not get out of its downward revenue spiral. Even a merger with say, a Continental, will only postpone the inevitable.

What’s the implication for IFE and cabin equipment suppliers? Fewer new aircraft deliveries naturally have a rolling impact of IFE and cabin equipment deliveries and will be reflected in reduced forecasted sales for BFE and SFE equipment and systems. But it’s not necessarily all bad news for the IFE industry provided there is sufficient capital available in the market for financing or sale/lease-back deals which would roll large retrofit programs into the refinancing package.

That’s my opinion and I’m sticking to it.”

Retrenchment, consolidation and retrofit seem to be the words on John’s mind and with recent, estimated industry reductions (new airplane deliveries) of 50%, we are in for a heckuva ride.

We may eat, sleep, and breath In-Flight Entertainment here at IFExpress central, but sometimes our industry problems are simply lost in the events of the times. This is one of those times… at least here in the US. As aviation, and a heckuva lot of other industries, take a nosedive, there are forces at work that promise to build a better world – aviation not withstanding. Recent events in New York may be the poster child of things to come. Seeing all those passengers standing on the wings of an A320 surrounded by first responders looked like the most one could make out of a really bad day flying. Actually, that imagery may be the beginning of some good news, badly needed. An airplane loss good news? More on that later. 

No doubt, the forthcoming economic experiences will be humbling. The effects on all of us will be more taxes, more stress, more headaches, more loss, and if we are lucky, more hope. While we all tighten our belts in expectation of the forthcoming year, it has to be worth the cost if we can see the possibility of a better future, a cleaner environment and a healthier aviation industry… a couple of years down the road (US Economy 2.0). From the airline point of view, recent fuel increases have created leaner airlines. Ones not necessarily in tune with passenger needs, but airlines that can survive lean times. 

From the perspective of US citizens, we know there is going to be more donation of personal time and personal contribution to our neighborhoods, our economy and our environment. This will be true, to one degree or another, in almost all other countries and while crappy slogans like “we feel your pain” are better left for soap operas, one could say it applies here. Moreover, we tried to think of a positive message to send out to our readers like the Chinese proverb used in the Hot Topic title. Euphemistically, it could be considered a curse as well, but as one might expect, no Chinese person has ever been accorded the attribution of the saying. So in that vein, we have to consider that current events, while interesting, might be starting to take a turn for the better! Hey, perhaps the glass is half full?

As we mentioned earlier, note should be made of a recent aviation incident in the US, the US Airways Flight 1549.  We wanted to acknowledge the airplane – the Airbus A320. While the obvious heroes of the stricken flight are unquestionably the captain, crew, and first responders, the durable little plane from Airbus endured a landing on water, deployed chutes and rafts, supported passengers and crew on its floating metal fuselage and wings, while generally acting as an aluminum life raft for some 156 people. This did not go unnoticed by us and we offer a tip-o-the-hat to all the professionals at Airbus and US Airways who build, support, fly, and maintain such a fine product.