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Overview of the Most Recent FlightPlan Event, News From Panasonic Avionics and More

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FlightPlan: Aviation Leaders Debate Solutions to Rebuild Passenger Confidence in Industry’s Largest Live Broadcast Event

Leaders from across the global aviation industry came together for a live broadcast on November 11th, which explored strategies to accelerate recovery and future growth in light of the COVID-19 pandemic. FlightPlan: Strategies for Recovery, hosted by Inmarsat Aviation and the Airline Passenger Experience Association (APEX), saw over 50 industry voices exchange views on the present and future of aviation.

Six months on from the hugely successful first FlightPlan broadcast event in April, with aviation still in the depths of one of its most extreme crises to date, the industry’s largest-ever virtual assembly returned to connect leaders on the digital stage once again. More than 3,500 viewers tuned in from almost 90 countries worldwide for a series of live debates, interviews and analysis.

Summarizing the day’s events, Philip Balaam, President of Inmarsat Aviation, commented: “FlightPlan is a unique platform that brings together the aviation industry during this difficult time to share views, exchange best practice and strategize for the future. Yesterday’s edition attracted record audience numbers in comparison to our inaugural FlightPlan broadcast in April and we are delighted that so many leading voices participated. Together, we reflected on the challenges faced in 2020, the progress made to date, and of crucial importance, the trends that will guide the next phase of recovery.

“A wide range of initiatives have already been executed to make flying viable and safe – from an overhaul of cleaning protocols to greater social distancing across the passenger journey. Under different circumstances, many of these changes could have taken years to introduce. The next phase will delve even further into the passenger mindset, ensuring that consistent policies, measures and technologies are implemented to restore confidence in airline travel. While many hurdles still lie ahead, the single most overwhelming sentiment expressed during FlightPlan was one of optimism.”

A particular highlight of the day was the launch of Inmarsat’s ‘Passenger Confidence Tracker’, the world’s largest survey of airline passengers since the pandemic began. Reflecting the views and attitudes of almost 10,000 respondents from 12 countries, it revealed that 83 per cent of air passengers expect their travel habits to change in the long-term as a result of COVID-19.

Reflecting on what the industry can take from the study in order to rebuild confidence, Niels Steenstrup, Inmarsat Aviation’s Senior Vice President of Inflight Business, told viewers: “The fundamental message is about consistency. Passengers want to be able to board a plane anywhere and be confident that the same hygiene practices are being followed. They want a consistent set of safety standards around the world, and more consistency on quarantine rules.

He continued: “Worries about flying are all too often a result of inconsistencies and lack of assurance about what they will be met with at the airport, on the plane or at the destination. Co-operation between nations will undoubtedly help restore passenger confidence.”

Agreeing with Steenstrup, Peter Harbison, Chairman of CAPA Centre for Aviation, added that “a harmonious and standardized way for looking after passengers” is needed. “The biggest problem is the unilateralism we have seen develop,” he said.

Another key theme of the day was the growing relevancy of trust and reputation. Robert Carey, Chief Commercial and Customer Officer at easyJet, said: “In an economic downturn, customers want value and a brand they can trust.” This is supported by data from the ‘Passenger Confidence Tracker’, which finds 44 per cent of passengers believe reputation is now a more significant factor when choosing an airline than it was pre-pandemic.

“Trust is super critical for any brand, but certainly for those that have a safety component like airlines,” agreed Anton Vidgen, APEX President and Air Canada Head of Brand Experience. “It was important before the pandemic and it’s especially important during the pandemic.”

There was a clear focus throughout FlightPlan on the importance of digital solutions as a short-term solution to boost confidence and safety, through reducing touchpoints and interactions throughout the journey experience.

Gustavo Nader, Thales’ Head of Strategy, IFE and Connectivity, noted a growing trend for traveler autonomy, enabled by digitization. “Travelers are increasingly reliant on self-directed resources to get information about their travel experience,” he said. “Airports and airlines will be required to accelerate their digital transformation in a way that increases the independence of the traveler and reduces their reliance on touchpoints and interactions.”

Airline leaders echoed this, arguing that the pandemic has accelerated their digital transformation plans. Vidgen noted that Air Canada has already adopted touchless bag check and is exploring innovative technologies from biometrics to automatic gate boarding. Implementing touchless technologies throughout the journey, he believes, will ensure “that customers feel confident and can serve themselves as much as possible”.

Matt Klein, CCO of Spirit, noted another shift in passenger habits: the uptake of ancillary services. “The Spirit business model, with optionality of services, is working. There is a lot of value for guests with that and our ancillary revenue generation numbers are back where they were last year,” he stated. Research from the Passenger Confidence Tracker supports Klein’s comments, with value added services – such as extra legroom and free baggage – becoming increasingly important to passengers in 2020.

Despite the deep challenges facing aviation as a result of the pandemic, FlightPlan speakers expressed positivity in how the industry has adapted at speed, and shared optimism for the recovery phase. Perry Cantarutti, SVP Alliances, Delta Air Lines, commented that “we’re learning to realize that we can’t let it [COVID-19] conquer our ability to live our lives and run our businesses, but we have to be able to do that in a safe way”. He noted that growing travel confidence in the US domestic market in particular is an “encouraging” sign.

According to Andrés Castañeda, CMO and CXO, AeroMexico, the pandemic has led the airline – and the wider industry – to identify ways to be more agile in the future. “We can change our processes and policies faster than we ever thought we could,” he said. “With COVID, we need to reimagine how we operate to bring trust back to customers. That has been a silver lining of the past eight months.”

Ben Smith, CEO of AirFrance KLM reiterated this, stating: “The crisis has forced us to be more agile. It’s forced us to really try and be a step ahead of our competitors”. He ended with a note of optimism for the industry: “People have family and friends around the world. People like holidays. People have businesses. That’s not disappearing. If borders are open, they will come back.”

While acknowledging that passenger habits will have changed, easyJet’s Carey shared the sentiment that the appetite for travel will not dissipate. Reflecting on the passenger of the future, he said: “Are they going to interact with us [airlines] differently? Absolutely. But the brands set up to win are going to have a really bright future.”

All interviews and content aired at FlightPlan are available to view on-demand via https://flightplan.wavecast.io/

The ‘Passenger Confidence Tracker’ report is available to download free-of-charge here.

Panasonic Avionics

Panasonic Avionics Corporation (Panasonic) announced the appointment of Hernan Abbes as Vice President, Global Sales.

In his new role, Hernan will play a pivotal leadership role in driving business growth and nurturing strong relationships with new and existing airline customers. He will report directly to CEO, Ken Sain, and have worldwide responsibility for developing and implementing strategic sales initiatives across Panasonic Avionics’ range of products, services and solutions.

Hernan will oversee efforts to strengthen customer relationships, listen to and understand customer needs, propose innovative solutions and share the voice of the customer feedback within Panasonic. As a member of Panasonic’s senior leadership team, he will also participate in strategy formulation and key decisions across the business.
Hernan assumes his role with a deep knowledge of Panasonic, its people and its customers, having joined the business in 2011 as an Account Manager for the Americas region. He progressed quickly upwards through a series of sales roles, and was appointed Regional Vice President for the Americas and Oceania in 2019.

Ken Sain, Chief Executive Officer of Panasonic Avionics Corporation, says: “Hernan is a valuable addition to Panasonic’s senior leadership team, and a skilled and proven executive who is passionate about customers, meeting their needs and exceeding expectations. Under his leadership, I have no doubt that our company will elevate our responsiveness and customers will benefit from his expertise and dedication.” Hernan Abbes, Vice President, Global Sales of Panasonic Avionics Corporation, says: “I am truly excited about my new role, and look forward to leading Panasonic’s team of incredibly talented sales executives. Our industry is facing challenging times but with the skill of our people and the strength and innovation of our services and solutions, I am confident that Panasonic will continue to grow as the provider of choice for airlines across the globe.”

Hernan Abbes’ started his career at Boeing, and then at Raytheon, as an electrical engineer developing wiring diagrams and cable assemblies, before he took a role at Thales Avionics as an installation engineer. He later transitioned into a Senior Account Manager role for Thales’ Latin America region selling In-Flight Entertainment and avionics. He has also held roles as a consultant to Gogo and a strategic account manager at Carlisle Interconnect Technologies.

Also from Panasonic:

Panasonic announced Qatar Airways as the launch customer for its new EcoFW 10” inflight entertainment (IFE) upgrade program. The seatback IFE monitors on the airline’s fleet of 37 Boeing 777 aircraft will be updated with Panasonic’s new EcoFW 10” monitor upgrade – creating a next-generation HD passenger experience while extending the life of the fleet’s IFE system, and reducing operational costs.

Panasonic’s IFE upgrade program, which can be achieved on an aircraft during routine overnight maintenance, includes the installation of a new passenger entertainment server. This provides passengers with a wider range of content and helps to modernize the airline’s offering and keep up-to-date with the demands of changing consumer preferences. This also enables the airline to achieve faster media loading times – all without any increase in weight, and with dramatically improved reliability levels.

The first aircraft from Qatar Airways’ 777 fleet has completed its IFE upgrade this week. This commitment from Qatar Airways marks the latest milestone in a longstanding partnership with Panasonic, which first started in 2000. A multiple award-winning airline, Qatar Airways was named ‘World’s Best Airline’ by the 2019 World Airline Awards, managed by Skytrax. Headquartered in Doha, the airline was launched in 1997 and is the national carrier of the State of Qatar. Qatar Airways Oryx One in-flight entertainment system offers passengers up to 4,000 entertainment options, from the latest blockbuster movies, TV box sets, music, games. and much more.

IATA

Here is an article from the folks at IATA with an evolution of the distribution impacts: “The potential size of the delivery is enormous. Just providing a single dose to 7.8 billion people would fill 8,000 747 cargo aircraft. Land transport will help, especially in developed economies with local manufacturing capacity. But vaccines cannot be delivered globally without the significant use air cargo.”

IATA – The Time to Prepare for COVID-19 Vaccine Transport is Now

Boeing

Boeing and Allen University announced today a new $1.5 million partnership to establish the Boeing Institute on Civility at Allen University. The Boeing Institute will be a national hub for teaching and provide programming aimed at advancing civil discourse in America and across the globe.
“The Institute on Civility will become a powerful catalyst for helping to promote thoughtful, civil discourse,” said Boeing President and CEO David Calhoun. “Empowering students and the broader community to debate public issues with civility and respect is an important step on the journey to developing lasting societal solutions.”

“The reach of The Boeing Company is particularly compatible with the university’s aspiration to demonstrate that service to the greater good does not stop in one’s own community, but has the obligation to be expansive,” said Allen University President Ernest McNealey. “While the Institute is the centerpiece of the Waverly Project, all aspects of it will confidently pursue a better future and honor those who did so in the past.”

“I want to thank Dr. McNealey, Mr. Calhoun and Bishop Green for their support of this Institute on Civility. We are at an inflection point in this great country and we must learn to share our lives together,” said Congressman Jim Clyburn (S.C.-6). “This Institute means a whole lot to me, this institution, this state and this nation.”

Boeing funding will support the renovation of the historic Good Samaritan-Waverly Hospital, which will house the Institute once construction is complete. The Institute will include a memorial to honor the nine victims of the 2015 Mother Emanuel AME Church tragedy in Charleston, S.C., and be the home to the South Carolina African American Hall of Fame.

Today’s investment builds on Boeing’s commitment to advancing racial equity and compliments the company’s recent $10 million investment in similar causes. Over the last five years, Boeing has invested more than $17 million in organizations to expand access and address inequities for communities of color across South Carolina.

EDITOR’S NOTE: We expect the FAA to formally unground the Boeing 737 MAX this week, most likely middle to end of the week after voting by the house say some sources. We note that the plane won’t start flying right away: Airline storage is one issue, there will be new training effort, and, of course, updating each aircraft with new software in the flight control system. Good Luck Boeing!

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Posted by on Tuesday, November 17, 2020 at 5:18 pm 
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FlightPlan Roundup and Other News

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This past week the industry gathered together via a live online broadcast event hosted by Apex and Inmarsat Aviation to address the challenges the aviation sector is facing as a result of the global pandemic and economic crisis. More than 3,000 individuals logged on to watch and participate in the 7+ hour event. The synopsis is outlined below and there is a link provided if you didn’t manage to attend the live session. Overall, there was a thread of cautious optimism throughout the various presentations/discussions but there was no sugar coating the fact that we are all in for a long, hard road on the way to recovery. Over the coming weeks, we will see more and more of  these live broadcast events as the industry seeks a path forward. Welcome to the new normal! So let’s delve into this week’s news.

FlightPlan

The global aviation industry came together on April 29, 2020 for a unique all-day broadcast event to encourage collaboration during the most challenging and unpredictable time in its history. FlightPlan: Charting a Course into the Future, hosted by Inmarsat Aviation and the Airline Passenger Experience Association (APEX), saw more than 50 leading voices exchange views on the present and future of aviation. Over 3,000 viewers tuned in from almost 100 countries worldwide for a series of live debates, interviews and news analysis. Experts voice confidence in eventual bounce-back for aviation industry Nick Careen, Senior Vice President of Airport Passenger Cargo and Security at the International Air Transport Association (IATA), observed that although the COVID-19 pandemic has “no parallel to draw upon in recent memory –  the airline industry has illustrated time and time again that if there’s any industry in the world that knows how to deal with a crisis, it’s this one”. Careen predicted that changes to airline passenger journeys as a result of COVID-19 may include staggered boarding processes, alongside faster adoption of biometrics and self-service technologies in the airport. Christoph Mueller, who has previously served as CEO of Malaysia Airlines and Chief Digital and Innovation Officer at Emirates Group, gave some reassuring words of encouragement to airlines: “I have a lot of confidence that at least a lot of airlines will come out of this crisis with a new and regained strength.”

In an interactive poll[1], FlightPlan viewers were invited to share their own predictions on the COVID-19 recovery phase throughout the day. Highlights from the results included:

  • Four in ten (43%) predicted that recovery will take from 18 months to three years
  • Four in ten (44%) said the industry was poorly prepared for COVID-19
  • Nearly two fifths (36%) stated that governments have helped the industry to navigate the pandemic, but could have done more
  • 9 in 10 (87%) expect to see more deep cleaning and slower turnarounds
  • 86% believe that personal protective equipment (PPE) will become standard for cabin crews in the coming months
  • 8 in 10 (80%) expect thermal scanners to become part of the passenger journey
  • Only 9% see blood tests for airline passengers becoming the norm

Unified effort essential to tackling aviation’s environmental impact

Discussing some of the ambitious sustainability targets the industry has previously set itself, such as net-zero carbon emissions by 2050, the experts agreed that collaboration was fundamental. Anko Van Der Werff, CEO of Avianca, argued that “the whole ecosystem needs to work together on this.” Paul Stein, Chief Technical Officer at Rolls Royce, added that the impact of single-nation initiatives has been limited and a “coalition of the willing” with industry bodies, airlines, manufacturers and fuel providers is needed.
Encouragingly, industry leaders expressed confidence that COVID-19 will not interrupt progress on sustainable aviation and may even push the topic higher on the agenda. Stein reflected that “the post-COVID-19 world is going to be one that will recognize the fragility of the planet – sustainability isn’t just going to come back to the point it was before COVID – it’s going to be an even stronger issue.” The FlightPlan poll results reflected this view, with 40% of respondents agreeing that COVID-19 will accelerate the drive to reduce emissions. Digitization will catalyze industry recovery and future growth Rupert Pearce, CEO of Inmarsat, spoke about the power of connectivity to drive global development and industry recovery. Although “2019 already feels as though it belongs to a different era”, Pearce remarked that the pandemic has not slowed the fourth industrial revolution. “I believe that digitalization lies at the heart of our ability to first survive this crisis, and then to drive our ability to rebound from it and start to thrive in whatever new reality lies in front of us.”

The next generation of passengers were at the center of a discussion around the need for airlines to continue preparing for the future. Behavioral scientist Rory Sutherland spoke of Generation Z’s “incredible need to travel”, observing that his own children “don’t see it as a privilege – they kind of see it as a right”. Aviation analyst Alex Macheras delved deeper into their digital expectations, adding that “if airlines are going to better satisfy Gen Z, inflight connectivity will continue to be a driving force.” Other experts agreed that these attributes, paired with growing spending power, will put young passengers in the driving seat when it comes to digital transformation in the cabin. Philip Balaam, President of Inmarsat Aviation, said: “As we look towards recovery and ensuring long-term resilience, there will be no one-size-fits all approach. However, it will remain important that airlines can differentiate for customers. It’s clear that the safety of consumers will continue to be at the forefront in this new world, and that digitization and innovation will be crucial to driving much-needed efficiencies, reducing environmental impact and improving passenger experience.”

Reflecting on the event, Dominic Walters, Vice President at Inmarsat Aviation, commented: “In times of crisis, it’s imperative that industries collaborate to find the best way forward. With so many of this year’s leading aviation events cancelled, we wanted to connect the industry in a unique and helpful way, and the response has been phenomenal. Together, more than 50 leading voices shared a clear shared message – that while the aviation industry contends with a period of extreme uncertainty, these clouds will eventually clear. Now is the time to focus on accelerating our recovery and rebuilding an industry that is stronger, more agile and fit for the future.” And, you can watch the whole event here.

Thales

Thales has deployed the world’s first GSMA-certified eSIM activation solution on Google Cloud. This solution will offer telecom operators secure and highly scalable support to manage increases in mobile subscriptions for eSIM-capable devices. It also lets them benefit from the reliability of Google Cloud’s carbon neutral technology. eSIM adoption is being fueled by a new generation of smartphones, tablets, wearables and new IoT use-cases. Thales’ subscription management expertise not only ensures seamless remote activation of a vast number of devices, but also provides data analytics and protection of the subscriber’s data.

  • Thales to use Google Cloud technology to deliver highly secure and scalable activation of eSIM (embedded SIM) capable devices.
  • The solution enables telecom operators to support a massive global increase in the volume of embedded mobile subscriptions (ABI Research expects around 1 Billion eSIM-capable devices to be shipped annually by 2024).
  • The Thales-operated solution provides secure eSIM management services and provides compliance with data protection and privacy requirements.

Airbus

Airbus posted 481m Euro net loss for 1Q20 (vs 40m Euro net profit in 1Q19) on 15% lower revenues, citing COVID-19. It has withdrawn all delivery guidance after already reducing monthly production rates to 40 A320s, two A330s, six A350s and four A220s. It has net cash position of 3.6b Euro. Furthermore, the airframer is furloughing some 3,200 workers in Broughton in the UK.

Airbus is developing a modification for A330 and A350 family aircraft which will enable airlines to install freight pallets directly onto the cabin floor seat tracks, after removal of the economy-class seats. This solution will help with the airlines’ own business continuity, and also alleviate the global shortage of ‘belly-freight’ air cargo capacity due to the widespread grounding of long-haul aircraft in the context of the COVID-19 pandemic. Additionally, it helps the industry to address the high demand for humanitarian flights to transport large quantities of medical equipment and other supplies rapidly over large distances to where they are needed.

Compared with loading cargo onto seats, this Airbus solution facilitates easier and quicker loading and unloading operations, as well as reduced ‘wear & tear’ to the seats themselves. Other important benefits include the added security of robust fire protection, and the 9g load restraint capability to prevent anything from shifting in flight. The modification is packaged for operators as an Airbus Service Bulletin (SB). Under this arrangement Airbus defines the engineering work-scope and also manages the process for obtaining the one-time certification from the European Union Aviation Safety Agency (EASA). Its scope includes the removal of the seats & IFE (Inflight entertainment), installation of cargo pallets and associated safety equipment – and also the re-installation of the original passenger cabin elements for reverting back to passenger operations. The SB approach will also be valid beyond the COVID-19 pandemic.

Boeing

On April 30, 2020  Boeing  released the following Statement on the Bond Offering: “We’re pleased with the response to our bond offering today, which is one of several steps we’re taking to keep liquidity flowing through our business and the 17,000 companies in our industry’s supply chain. The robust demand for the offering reflects strong support for the long-term strength of Boeing and the aviation industry. It is also in part a result of the confidence in the market created by the CARES Act and federal support programs that have been put in place – a testament to the Administration, Congress and the Federal Reserve. As a result of the response, and pending the closure of this transaction expected Monday, May 4, we do not plan to seek additional funding through the capital markets or the U.S. government options at this time. The bond offering includes debt instruments with an aggregate principal amount of $25 billion across seven tranches with maturities ranging from three to 40 years. We will continue to assess our liquidity position as the health crisis and our dynamic business environment evolve.”

On April 30, 2020 Boeing conducted a productive and successful first flight of the second 777X airplane. Captain Ted Grady, 777X project pilot, and Captain Van Chaney, 777/777X chief pilot, flew for 2 hours and 58 minutes over Washington state before landing at Seattle’s Boeing Field at 2:02 p.m. Pacific. Designated WH002, this airplane is the second of four in a dedicated flight test fleet and will test handling characteristics and other aspects of airplane performance. An array of equipment, sensors and monitoring devices throughout the cabin allows the onboard team to document and evaluate the airplane’s response to test conditions in real time. The 777X test plan lays out a comprehensive series of tests and conditions on the ground and in the air to demonstrate the safety and reliability of the design. To date, crews have flown the first airplane nearly 100 hours at a variety of flap settings, speeds, altitudes and system settings as part of the initial evaluation of the flight envelope. With initial airworthiness now demonstrated, the team can safely add personnel to monitor testing onboard instead of relying solely on a ground-based telemetry station, unlocking testing at greater distances. The 777X includes the 777-8 and the 777-9, the newest members of Boeing’s market-leading widebody family. Below is a comparison between the dash 8 and dash 9:

  • Seat Count (Typical 2-class)
    777-8: 384 passengers
    777-9: 426 passengers
  • Engine
    GE9X, supplied by GE Aviation
  • Range
    777-8: 8,730 nautical miles (16,170 km)
    777-9: 7,285 nautical miles (13,500 km)
  • Wingspan
    Extended: 235 ft, 5 in (71.8 m)
    On ground: 212 ft, 8 in (64.8 m)
  • Length
    777-8: 229 ft (69.8 m)
    777-9: 251 ft, 9 in (76.7 m)
  • Program Launch: 2013
  • Production Start: 2017
  • Ground Testing: 2019
  • First Flight: January 25, 2020
  • First Delivery: 2021

Additionally, “BOEING announced plan to lower its number of employees by roughly 10% company wide, including 15% cut across its commercial airplanes and services businesses, as well as corporate functions.”

Lastly, the First Quarter Financial Results are listed below:

  • Financial results significantly impacted by COVID-19 and the 737 MAX grounding
  • Revenue of $16.9 billion, GAAP loss per share of ($1.11) and core (non-GAAP)* loss per share of ($1.70)
  • Operating cash flow of ($4.3) billion; cash and marketable securities of $15.5 billion
  • Total backlog of $439 billion, including over 5,000 commercial airplanes

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Posted by on Tuesday, May 5, 2020 at 6:58 pm 
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