Panasonic Avionics
In late 2020, Panasonic Avionics, in conjunction with a major airline, conducted a trial providing passengers unlimited inflight Wi-Fi. The trial ran over several months with the goal of finding out how the airline could enhance the relationship with their passengers by providing high-quality onboard Wi-Fi. Specifically, it allowed them to better understand if Wi-Fi boosted passenger loyalty; to see if Wi-Fi facilitated a better understanding of passenger behavior; and if better Wi-Fi correlates to an increase in potential revenue.
The Wi-Fi experiment was quietly rolled out on 109 aircraft with very limited promotion but once available, the service was quickly discovered by passengers – and they began streaming. On average, the engagement time per user increased by 23%, streaming content was viewed 41 minutes more with YouTube and Netflix being the top choices watched by passengers and music aficionados tuned into their Spotify and Apple Music Apps to stream their favorite tunes. Prior to the trial the average passenger data consumption per aircraft was 1.6 GB of data which jumped to 3 GB during it.
The trial ran during the holiday travel times, which had the highest travel numbers since the start of the pandemic. Even with the increased load factors, complaints about slow inflight internet rates fell by up to 46% in December and 61% in January! Amazing.
The most significant takeaways from the trial: 1) Fast, reliable, highspeed internet is a cornerstone of the passenger experience. 2) Increased usage of streaming apps, either via PEDS or seatback screens, provide a big opportunity for increased revenue-generating ads and content for the airlines.
Panasonic states that the trial was possible because of their Gen-3 network of high speed, high bandwidth Ku-band satellites that direct capacity to where it is needed most. Panasonic reports that In February, their first of high-throughput satellite (XTS) joined their network and entered service over Asia-Pacific. Also, the new Newtec modems played an integral part in the success of the trial. Additionally, the migration from Panasonics’ previous generation IFEC technology means faster browsing and higher reliability in video streaming. The Gen-3 network also enables 4G and VoIP services and powers Live TV channels like Sport 24.
The trial proved that passenger demand for highspeed, high quality internet is growing. This is supported by: 1) an increase in long-haul flights 2) passengers are carrying more connected devices 3) high customer expectations for technology and airlines. Further, the increase in BYOD (bring your own device) will continue the drive the demand for high quality, connectivity. Perhaps more significantly, this increasing expectation and new demands for inflight services are encouraging airlines to brand their onboard entertainment experiences, not only for the seatback IFE, but also the BYOD and to coordinate these efforts with the IFEC manufactures.
Embracing highspeed, reliable connectivity will put airlines in a better position to meet their passenger needs, both now and in the future, whether the service is free or paid. As the industry begins to recover from the pandemic, maximizing connectivity will be a major differentiator.
Also From Panasonic Avionics & JetBlue:
JetBlue announced that it has selected Panasonic Avionics (Panasonic) for its live sports in-flight offering on the airline’s Airbus A321 Long Range aircraft.
This offering will expand JetBlue’s transatlantic inflight entertainment options to include one channel of live sports, Sport 24, with satellite-based streaming facilitated by the airline’s connectivity provider. JetBlue’s new fleet of Airbus A321LR aircraft due to be delivered from 2021 onwards, will be outfitted with the service.
Panasonic is the exclusive provider of Sport 24, the world’s first and only live in-flight sports platform. It broadcasts 24-hours a day, 365 days a year, connecting airline passengers to over 16 hours of premium live content from over 30 different global sports leagues each day.
From 2021, JetBlue’s customers will be able to enjoy all the live action from the world’s top sporting events, including the NFL, NBA, NHL, all four Tennis Grand Slams, all four Golf Majors, the NRL, the UEFA Champions League, English Premier League, Bundesliga, and more.
Sport 24 creates a unique viewing experience for passengers – from the casual to the avid sports fan – which results in a dwell time almost three times higher than the most popular US sports channel.
Almost 1,000 aircraft across the globe are installed with Panasonic’s Live Television service, of which Sport 24 are an integral part.
Hiring Trends Survey: Covid-19 Impact Results
JSfirm.com, an aviation job website, released their Hiring Trends Survey for 2021. Of the hiring professionals, executives, and business owners surveyed, over 50% are projecting growth in 2021. Additionally, 66% of those surveyed did not cut any jobs in 2020, despite the impact of the COVID-19 pandemic on the economy.
In summary:
- 200 aviation companies across various sectors were surveyed
- 84% are projecting moderate growth in 2021
- 93% expect to hire in the 2nd Quarter (Apr – Jun) of 2021
- Pilots, maintenance & avionics technicians remain in highest demand
Sam Scanlon, Managing Partner of JSfirm.com, said, “The results of our recent survey are encouraging for the industry. It’s interesting to see how many companies were not affected too much by the pandemic: airlines make the headlines, but the fact is, the small to medium size companies that make up the majority of our infrastructure made it through the past year and are now gearing up for growth.” He continued, “Overall traffic on our website continues to increase from both job seekers and companies – we are anxious to see how the remainder of 2021 plays out.”
Morgan Stanley
Airlines: More than Just a Re-Opening Trade; Fundamentals Still Supportive of Upside: Upgrade UAL, ALK; Initiate on AAL
Morgan Stanley (MS) reiterates their Attractive view on the US Airlines despite the stocks up 85% in the last 5 months. With a clear path to re-opening now in focus, they look out to 2022+ and find consensus numbers are too low given their view of strong volume and cost tailwinds. MS are ~30%+ above consensus in 2023.
They initiate coverage on American Airlines (AAL) at Underweight. MS upgrades Alaska Air Group (ALK) from Equal-weight to Overweight and United Airlines (UAL) from Underweight to Equal-weight. Remain Overweight on Southwest Airlines (LUV), JetBlue Airways (JBLU), Allegiant Travel (ALGT) and Delta Airlines (DAL).
MS sees ~30% upside to our price targets and 45% upside to consensus 2023 estimates, on average, driven by quick rebound of air traffic, structural cost savings and a supportive jet fuel environment. They also believe a Roaring ’20s/Swinging ’60s-like macro environment can drive traffic significantly higher than a 2019 baseline level, in a bull case. MS sees the most upside at names with the most idiosyncratic tailwinds especially LUV, JBLU, ALK and ALGT though international and corporate could also surprise to the upside relative to expectations keeping the Legacies in play (especially DAL).
Morgan Stanley also believes the market is missing a few powerful tailwinds driving upside to our estimates vs. consensus:
1. 2022+ estimates still do not reflect a rapid reopening. The circumstantial evidence points to the bull case on a traffic recovery. Yet, consensus is modeling in 2022 revenues ~20% below and 2022 ASMs (Available Seat Miles or volume) ~10% below 2019 levels, which we believe is too conservative. MS continues to expect a return to 2019 ASM levels on average by end 2021/early 2022, which implies 2022 ASMs at least equal to 2019 levels.
2. 2019 is the wrong baseline to use for 2023 and beyond. They used 2019 as the baseline for the reopening but consensus (and the market) appear to be maxing out at that level. MS believes the ceiling for air traffic can be significantly higher in a Roaring ’20s/Swinging ’60s like macro environment, which is possible given the strength of consumer balance sheets. In the 1920s, passenger car miles driven nearly doubled in 5 years above the WW1/Spanish flu baseline of 1918 and again after WW2 in the 1950s, while the emergence of commercial air travel saw passenger volumes up 6x in 5 years. While travel today is certainly more mature, we would not be surprised to see the return of the “golden age” of travel in the 2020s, which would represent upside to our numbers.
3. Structural cost savings suggest margin upside on rising volumes. Several airlines have provided either LT structural cost savings targets (UAL, JBLU, AAL) or benchmarks for achieving 2019 CASMxF (Cost per Average Seat Mile ex-fuel) levels (DAL, LUV). These targets imply margins should be comfortably higher than 2019 levels, if 2022/23 revenues are at a similar level, as expected.
4. Jet fuel pricing is in a sweet spot. Despite jet fuel prices rising 40% off the 2Q20 bottom, we note that: a) fuel prices are still comfortably below 2019 levels, b) current levels could be supportive of industry pricing, and c) our Energy team believes that in the long-term oil prices will stabilize at $50-55/bbl level (vs. ~$60 today), providing further support for structurally higher margins than 2019.
Riding the biggest waves in the rising tide + Idiosyncratic catalysts characterize our top picks. Morgan Stanley likes airlines with catalysts that will help them outgrow the rising tide. This means Low Cost Carriers (LCCs) and Ultra Low Cost Carriers (ULCCs) with a US Domestic Leisure footprint that will rebound first though we expect International and Corporate travel at Legacy carriers to catch up in 2022. Also, we prefer stocks with idiosyncratic catalysts, including LUV (MAX transition, new corporate/GDS integration), JBLU (fleet renewal, international operations, AAL alliance), ALK (MAX transition, AAL alliance) and ALGT (20% larger fleet). They also prefer Airlines that are likely to start returning cash to shareholders first, given limited to no balance sheet impairment. Legacy airlines are likely to experience the rear of the rising tide and the balance sheet needs to be fixed before cash return or growth investments can occur. DAL is their top Legacy pick.
MS initiates on AAL at UW and a $20 PT (20% downside to the current price) – we believe AAL will rise with the industry tide of returning air traffic and they like its young aircraft fleet which could limit capex pressure in the critical years ahead. However, with the stock up over 50% YTD, positioning is no longer skewed as negative as it used to be, which raises the bar. Our FY23 EPS is roughly 40% below 2019 levels. They are also upgrading ALK from EW to OW (PT from $49 to $90 or 30% upside) and UAL from UW to EW (PT from $38 to $65 or 12% upside) as they see more favorable relative risk-rewards than previously.
Risks to their bullish view include another black swan macro event, labor shortages/disruptions, runaway inflation that pressures the consumer’s balance sheet, safety issues (like COVID resurgence or MAX in 2019) and sharp jet fuel inflation could put our 2022/23 estimates at risk.
Other News
- Aviation expert and previously retired airplane company exec, Bob Bogash just sent IFExpress an interesting and very unusual story about an unmarked Boeing 787. Have any idea why it flies like it does? Mysterious Boeing 787 Flies 20+ Hours Nonstop | One Mile at a Time
- You probably know some of these but if you know all of them, you should be in a successful or interesting business. Business Acronyms You Should Know
- We bet we have found a better dancer than you! (186) Do You Love Me? – YouTube Thank you Boston Dynamics!!! And yes, someday they will load your bags and cargo on to an aircraft.
East Aurora, NY | September 13, 2019– Astronics Corporation (Nasdaq: ATRO), a leading provider of advanced technologies for global aerospace, defense, and other mission critical industries, announced that it recently executed an agreement with Collins Aerospace’s to provide its Ku-band tail-mounted satellite communications (SATCOM) antenna technology for the Collins Aerospace KuSAT-2000 solution. Astronics AeroSat, a wholly owned subsidiary of Astronics Corporation, will supply the technology for this system.
“We are excited to provide our industry-leading tail-mounted antenna technology to Collins Aerospace as it teams with leading satellite operator SES to offer LuxStream, a high-speed broadband connectivity service for the business aviation market. Astronics is committed to supporting Collins Aerospace’s world-class sales and support teams,” said Matthew Harrah, President of Astronics AeroSat.
Collins Aerospace will be the primary point of contact for all sales and technical support requirements, giving dealers and customers an expedited and unified response to all questions concerning the LuxStream service and hardware solution. Collins Aerospace will receive direct support from Astronics’ technical team to address any customer requirements.
FliteStream F-310 and T-310 SATCOM Products First to Become Qualified for Intelsat Business Aviation Service
East Aurora, USA | October 16, 2018–Astronics Corporation (Nasdaq: ATRO), a leading provider of advanced technologies for the global aerospace, defense and semiconductor industries, announced that its wholly owned subsidiary, Astronics AeroSat, had its FliteStream connectivity solutions tested, qualified, and approved to operate across Intelsat’s FlexExec business aviation service.
Astronics Aerosat’s FliteStream connectivity solutions are the first inflight terminals to obtain approval to operate over Intelsat’s FlexExec service. FliteStream is a widely deployed satellite broadband data solution of fuselage- and tail-mount SATCOM products designed for government, commercial, business and VVIP aviation operators and passengers.
FlexExec is a managed end-to-end service that is accessible via Intelsat’s
global, high-performing, multi-layered Ku-band satellite fleet.
Specifically designed to cover high-traffic business jet routes, FlexExec integrates layers of high-throughput satellite (HTS) coverage from the company’s proven Intelsat EpicNG fleet with the company’s wide-beam Ku-band satellites to deliver added resiliency and redundancy.
FlexExec also aggregates Intelsat’s space segment and the IntelsatOne ground infrastructure into a simplified, streamlined ecosystem. By having one cohesive network, service providers will immediately gain operational efficiencies and be in a stronger position to simplify the in-flight experience for flight departments. In addition, the flexibility of the FlexExec platform enables Intelsat’s service providers to define their offerings for customers on an individual basis rather than on a one-size-fits-all model.
About FliteStream Satellite Connectivity Systems
Astronics AeroSat’s FliteStream solutions include its patented lens-horn technology, which creates the most efficient, reliable and highest-performing SATCOM antenna systems available.
The FliteStream solutions integrate next-generation satellite modem technology and are the only systems in production today that is compatible with next generation Ku-band high throughput satellites and iDirect Velocity networks, which provides maximum internet and data speeds in a single antenna.
Key features include:
- Seamless connectivity for passengers to browse the internet, send and receive emails, make calls using Voice-Over-IP (VoIP), access virtual private network (VPN) services, conduct video conferences, and enjoy favorite work or entertainment applications
- Most efficient Ku-band SATCOM antenna systems, critical for maintaining low angle satellite coverage while flying at higher latitudes, where most flights occur
- Compliance with RTCA DO-160 and RTCA DO-178
Astronics AeroSat keeps people connected no matter where they fly. For over twenty years, Astronics AeroSat has provided fuselage- and tail-mounted SATCOM solutions for general aviation, business aviation,
commercial transport, VVIP, and military aircraft around the world. Learn more at Astronics.com.
Orlando, USA | October 15, 2018– Today at NBAA, Satcom Direct (SD) launches SD Xperience to simplify and improve business aviation connectivity and operations. The new fully-synchronized, end-to-end solution combines cabin and cockpit communications services, aircraft connectivity hardware, and flight operations software. SD Xperience will deliver purpose-built technology that satisfies the unique, evolving requirements of business aviation, allowing SD to create tailored solutions based on customer requirements.
SD’s existing Ka-band, Ku-band and L-band offerings for high-speed data, basic internet, and safety services are included in the SD Xperience portfolio. Today, the SD Xperience portfolio was further enhanced with the addition of a new broadband service in partnership with Intelsat (NYSE: I) and Astronics AeroSat. SD is the Master Distributor of FlexExec, Intelsat’s new managed service powered by Intelsat’s global Ku-band satellite fleet, which features the Intelsat EpicNG high-throughput satellite (HTS) platform. The service is uniquely designed to support business aviation, meaning capacity is not shared with commercial aviation or consumer broadband customers, ensuring that business jet passengers will have seamless, on-demand global connectivity. The network architecture is delivered via the upgraded AeroSat FlightStream™ (T-310) tail-mounted antenna system.
The service has been undergoing in-flight validation with SD Flight Operations since July 2018, delivering average speeds between 8-10 Mbps. The service will be available in Q1 2019 for STC development with aircraft OEMs for applicable aftermarket airframes. SD Xperience also brings innovative new pricing structures to market which address the specific and varied requirements of business aviation. SD customers can benefit from simplified “Power by the Hour” pricing, inclusive of FlexExec service, SD Hardware, SD Pro and SD Scheduler, for one hourly rate. Plans can be customized to the needs of each individual aircraft or fleet to enable more efficient planning and budgeting. Fully integrated with SD’s ecosystem, including its SaaS platform SD Pro®, SD Scheduler, and SD Avionics cabin technology, SD Xperience aims to enhance the user experience while simplifying and optimizing flight operations.
“Our aim is to deliver premium solutions that are purpose-built for our industry. Our new product portfolio synchronizes aircraft with flight departments for improved operational efficiency, expands connectivity options and simplifies the purchasing process. SD Xperience positions us as the leader in business aviation connectivity solutions as we are the only service provider offering infrastructure, hardware, software and airtime packages. SD Xperience is the next evolution in business aviation connectivity,” said Jim Jensen, SD Founder and CEO.
SD Xperience further confirms the SD commitment to innovation. It encompasses the breadth of services offered through robust infrastructure, partnerships and continued investments in leading technologies to advance business aviation. The introduction of Intelsat’s FlexExec service and recently launched SD Scheduler will continue to enhance the business aviation experience for passengers and operations personnel alike
Flexible and Scalable Network Architecture Empowers Service Providers to Offer Unique State-of-the-Art Service and Maximize Profitability
FlexExec from Intelsat Delivers the High Performance, Ubiquity, Resiliency and Reliability that Service Providers and Business Jet Owners Deserve
Intelsat’s Seamless, Multi-Layered, Network for Business Aviation Ensures a Best-in Class Experience for Every Business Jet Passenger
Luxembourg | October 15, 2018– Intelsat S.A., the world’s leading provider of satellite services and integrated communications, announced today it is launching FlexExec, a managed end-to-end service enabling service providers to easily and cost-effectively deliver high-performance, in-flight broadband connectivity to business jets globally.
FlexExec’s broadband services are now accessible via Intelsat’s global, high performing, multi-layered Ku-band satellite fleet. Designed specifically to cover high-traffic business jet routes, FlexExec rides on the Intelsat global network, which integrates layers of high-throughput satellite platform (HTS) coverage from the company’s proven Intelsat EpicNG fleet with the company’s wide-beam satellites to deliver added resiliency and redundancy.
“With FlexExec, Intelsat is reinventing the communications experience for business jet operators and passengers,” said Mark Rasmussen, Intelsat’s vice president and general manager, mobility. “Business travel is demanding and with the global, committed, multi-layered coverage of FlexExec, our service providers can ensure that every business passenger has access to the same high speed, reliable broadband connectivity in the sky as they would at home or in the office. Importantly, the flexibility, throughput and improved economies of scale of FlexExec enables our service providers to differentiate their service offerings and meet the evolving streaming and broadband demands of their passengers over the long-term.”
Positioned for Success with Flexible, Customizable Service Plans
FlexExec aggregates Intelsat’s space segment, the IntelsatOne ground infrastructure into a simplified, streamlined ecosystem. By having one, cohesive network, service providers will immediately gain operational efficiencies and be in a stronger position to simplify the inflight experience for flight departments.
In addition, the flexibility of the FlexExec platform enables Intelsat’s service providers to define their offerings for customers on an individual basis rather than on a one-size-fits-all model. It allows them to use bandwidth as they see fit and tailor services based on regional needs. With multi-layered, seamless, consistent coverage paired with the capability to customize and differentiate their offering, service providers have the flexibility to optimize their service, differentiate their brand and deliver real value to their customers. The single, global, high-performance network also eliminates uneven service and gaps in coverage, the prime concern of an end-user base whose flight schedules and routes are not as consistent and predictable as commercial airlines.
Fuel Customer Loyalty Indefinitely
FlexExec is anchored on industry-leading technology and redundancy, ensuring that business jet passengers will have seamless, consistent on-demand connectivity. The Intelsat EpicNG platform utilizes Ku- band, wide beams, spot beams, and frequency reuse technology to provide a host of customer benefits. High quality connectivity without loss in performance, and up to 15x more throughput per satellite is a staple of what Intelsat EpicNG can deliver. Multiple Intelsat EpicNG spot beams enable a high concentration of power on smaller areas supplying the much larger volumes of data that passengers are seeking, especially on the highest traffic aero routes. As a result, service providers and passengers can enjoy reliable, uninterrupted inflight connectivity globally.
Deliver a Best-in-Class Passenger Experience on Every Flight
FlexExec helps business jet broadband providers exceed the expectations of a deserving client base that wishes to stay connected at all times. The service is uniquely designed to support business aviation, meaning capacity is not shared with commercial aviation or consumer broadband customers, ensuring that business jet passengers will have seamless, on-demand connectivity. This results in a best-in-class experience for each passenger on every flight, whether they wish to exchange emails, access cloud-based applications, stream movies or indulge in any other data-heavy experience.
FliteStream® T-Series Delivers Fast, Seamless In-flight Internet and TV
East Aurora, NY | December 13, 2017– Astronics Corporation (NASDAQ: ATRO), a leading supplier of advanced technologies and products to the global aerospace, defense and semiconductor industries, announced the success of the recent in-flight demonstrations of its FliteStream® T-Series tail- mounted connectivity system. The system, provided by Astronics’ wholly owned subsidiary Astronics AeroSat, is now certified and in production.
Astronics AeroSat conducted the demonstration flights in collaboration with its connectivity partners Panasonic Avionics (network operator) and Satcom Direct (reseller partner). Astronics AeroSat invited various subject matter experts,
dealers, MROs, and owner-operators to experience the FliteStream® connectivity
performance first-hand on a Gulfstream G-IV aircraft in the skies above Las Vegas during the NBAA business aviation trade show in October, 2017.
Demonstration flight attendees were invited to use their personal devices to try out the connectivity performance. Multiple users simultaneously operated up to 22 separate devices to text, make voice and video calls, stream video and audio, securely connect to offices via VPN, and email large files.
The 28 passengers who flew on four separate flights experienced:
- A minimum of 4 Mbps connectivity (commonly reaching over 7 Mbps) on Panasonic’s wide beam
network. The new high-throughput satellite (HTS) network, layered with the wide beam network, will be introduced to the business aviation market in the second half of 2018, promising more capacity, speed and live TV channels to improve the passenger experience.
- Streaming video (e.g. IPTV – internet-delivered television, Netflix, Hulu)
- Streaming audio (e.g. Spotify)
- Large file data transfers (e.g. 28 MB+ files)
- Full flight system tracking and performance (taxi, take-off, climb, cruise, descent, and landing)
“On every flight, we had people doing everything from e-mailing and text messaging to FaceTime calls. The number of devices actually used in flight ranged from a minimum of 17 to as many as 22 devices simultaneously. All of the participants were very impressed with the connectivity capability,” explained Rick Brainard, Director of Business Development at Kaiser Air.
He continued, “We performed all of our demos in flight, under real conditions, unlike others showing just on-ramp performance. I went into the demonstrations with high confidence that the demo flight attendees would be impressed with the system. Each demo flight confirmed that, not only is the Astronics AeroSat FliteStream T-Series a great system for our clients, it is a great system that brings incredible value to the passengers and crew.”
The FliteStream T-Series system is available now and can be purchased through MRO facilities, for installation on business and VIP aircraft.
About the FliteStream T-Series Satellite Connectivity Antenna
Astronics AeroSat’s FliteStream solutions are the only products available with patented “Rexolite® Lens” technology, which creates the most efficient, reliable and highest-performing connectivity systems available. The FliteStream T-Series provides high-speed internet, live IPTV and DBS-TV in a single antenna.
Key features include:
- Seamless connectivity for passengers to browse the
internet, send and receive emails, make calls using Voice- Over-IP (VoIP), access virtual private network (VPN) services, conduct video conferences and enjoy favorite work or entertainment applications
- Highest performing Ku-band SATCOM antenna system, critical for maintaining low angle satellite coverage while flying at higher latitudes, where most flights occur
- A five-piece LRU system: antenna, antenna controller, low power transceiver, power amplifier and diplexer
- Compliance with RTCA DO-160 & RTCA DO-178
Astronics AeroSat keeps people connected no matter where they fly. For over a decade, Astronics AeroSat has provided fuselage- and tail-mounted satellite communications (SATCOM) solutions for general aviation, business aviation, commercial transport, VVIP/heads of state and military aircraft around the world. Learn more at Astronics.com.
Chicago | November 28, 2017– Gogo (NASDAQ: GOGO), the leading global provider of broadband connectivity products and services for aviation, announced today that Air Canada is now the first North American airline to offer the choice of complimentary Gogo Wi-Fi to their most frequent flyers.
Each year, Air Canada recognizes its most frequent flyers with Altitude status and offers them the ability to choose select privileges to personalize their travel experience. Beginning later this year, the airline will offer Altitude Elite 75K and Super Elite 100K members the opportunity to select complimentary 6- and 12-month unlimited use passes, respectively, for inflight connectivity on board Air Canada, Air Canada Express and Air Canada Rouge operated flights.
“We are delighted to partner with Air Canada to bring the industry’s leading inflight connectivity solution to their loyal customers for free,” said John Happ, Gogo’s Regional President, Americas. “Gogo is finding new ways to leverage connectivity to enable unique experiences for our airline partners that fit their individual needs. Free Gogo for Air Canada’s most frequent customers is a great example of how we are delivering on this for our airline partners.”
“Earlier this year, Air Canada announced plans to launch an all new, digital-first loyalty program in June 2020. While we design the future program, we’re committed to adding new options and benefits for Altitude members today and over the next two years,” said Mark Nasr, Vice President Loyalty & eCommerce. “In-flight Wi-Fi is a critical amenity for business and leisure travelers alike, so we’re excited to become the first North American airline to offer the choice of unlimited Wi-Fi plans to our most frequent Altitude members.”
Members will be able to choose this Select Privilege as part of the 2018 Altitude benefit year. The passes will also be eligible for use on Gogo’s 2Ku service, a leading high-speed satellite Wi-Fi solution.
Cathay Pacific Becomes First Large Global Fleet in Asia to Select Gogo’s 2Ku Inflight Connectivity Solution
Chicago, IL | November 16, 2017– Gogo (NASDAQ: GOGO), the leading global provider of broadband connectivity products and services for aviation, announced today that it has been selected by the Cathay Pacific Group to install Gogo’s 2Ku inflight connectivity solution on its wide-body fleet.
The carrier will install 2Ku on its Airbus A330 and Boeing 777 aircraft across Cathay Pacific and Cathay Dragon fleets, which are both part of the Cathay Pacific Group.
2Ku is the industry’s leading inflight connectivity solution and delivers an internet experience comparable to what passengers have on the ground.
“We are excited to partner with Cathay Pacific and Cathay Dragon to bring their guests a new onboard connectivity experience with 2Ku,” said Michael Small, Gogo’s president and CEO. “As a premier global airline group, and Hong Kong’s flagship carrier, Cathay passengers expect a premium experience, which 2Ku is delivering today with superior bandwidth, coverage and availability.”
With more than 2,000 aircraft awards, 2Ku is the most rapidly adopted satellite-based broadband connectivity technology in aviation. The technology has been adopted by leading airlines in North America, South America, Europe and now Asia.
“Our goal is to allow our customers to be connected anytime and anywhere – and this agreement with Gogo is a huge step in enabling us to deliver this,” said Paul Loo, Cathay Pacific Chief Customer and Commercial Officer.”
2Ku will give Cathay Pacific and Cathay Dragon’s guests a seamless experience across their existing fleet of wide-body aircraft. The service is expected to go live by mid-2018.
Firstly, IFExpress has our APEX show images on line and you will find them here.
Next, we talked to Rich Salter at the APEX show and he told IFExpress that FTS had hosted a Chinese IFEC Summit and had conducted a successful live Ka-Band HTS Satcom connectivity demo in Beijing and we asked for more information for our readers and here is what he sent:
“On September 14th, 2017, FTS hosted an IFEC Summit and conducted a live demo of their Ka-Band HTS Satcom Connectivity solution to multiple Chinese airlines, government officials, and technology partners in Beijing, China. Taking place at the ultra-modern Zpark Technology and Conference Center, more than 150 attendees listened to speakers who shared insights on broad topics like regulations, market development and technology trends. This is indicative of the recent surge in interest and accelerated pace of rolling out inflight connectivity in China.
For the live Ka-Band Satcom Connectivity demo, FTS leveraged on ChinaSat-16 Ka-Band satellite, connected to full FTS Xstream-Sat hardware, including Satellite Antenna, Modman, General Network Server and Cabin Wireless Access Points. FTS was able to demonstrate downlink speed in excess of 70Mbps in what was the debut of the first China Ka-Band satellite for IFC. All attendees were connected to internet via satellite on their mobile devices as if they were on a flight. Each attendee was assigned a virtual seat number and could stream videos, surf websites, order food and beverages as well as indulge in some onboard shopping on the FTS Xstream inflight software platform throughout the demo. Flight attendants serviced the attendee requests and orders in real time and the demo was a great success.
With the recent announcement of the Chinese government to allow the use of PEDs and cellphones inflight, the timing of the event could not have been more advantageous. “We are very pleased with the number of airlines and industry partners that attended the event and with the successful demo of our IFC solution, we look forward to growing our footprint in China in tandem with our great partners,” said Rich Salter, CTO of FTS. This issue’s rectangle picture is from the FTS demonstration.
IFEC Breaking News (Sorta!) – Follow the Money!
Ok, see if you can follow this:
1. Bombardier developed a CSeries (CS 100), single-aisle, 100 to 150 passenger aircraft in Quebec, Canada.
2. Delta ordered 75 of the CSeries planes ( with 50 more as an option) in April of this year as part of their fleet upgrade ($4 to $5 Billion) with the hopes of a 2018 introduction.
3. In May, Boeing claimed the US aerospace industry was at risk if the planes are sold and stated that Bombardier should be fined for price dumping. Boeing proceeded to file a complaint with the ITC and the US Department of Commerce charging that selling the planes at $19.6 million each should be considered a “dumping” price. A 218 page transcript was reviewed that noted that the CSeries selling at that price would kill the Boeing B737-700 and the MAX 7. While Delta did buy some Boeing planes, they were going to loose the “100 seat market the plane need” and since there was a financial bailout of Bombardier by the Canadian Government, the CSeries should receive a US Government tariff. Initial US Commerce Department rulings recommended that US Airlines should pay as much as 300% in import duties.
4. Delta CEO Ed Bastian was not going to buy the planes at the new price!
5. On October 16, Airbus and Bombardier formed a partnership (Airbus – 50.01%, Bombardier 31%, Quebec – 19%) and announced the plane will be built in two countries (Quebec and Mobile, Alabama in the US where their A321’s are made), and guess where the Delta planes will be built? In about one month, Airbus put the deal together and since they see 6,000 of the CS types in the small-plane market (most in the US), it worked for both companies. We note, airplanes built in the US are not subject to US duties – at least not today.
And lastly, why are you reading about it here? Because this is the plane that Delta will launch the new Gogo Vision Touch, the wireless seatback solution for connected IFEC, on in 2018. Check out this link for more details on Gogo Vision Touch!
NEWS:
Astronics
Astronics Advanced Electronic Systems (AES), was recently selected by six major North American airlines to install industry-leading EMPOWER in-seat power systems on up to 1,400 narrow- body and regional jet aircraft.
Astronics AES will equip the airplanes with 110VAC and high output USB power for every passenger from “nose to tail,” including the cabin crew stations. Line-fit and retrofit installations will occur from early 2018 through 2023.
Peter J. Gundermann, President of Astronics Corporation, noted, “Being selected for these significant fleet upgrades further solidifies our leading global market position for passenger power on commercial aircraft and is a strong indication of the increasing trend for airlines to provide power for their passengers on narrow-body and regional aircraft. Carriers worldwide are responding to passenger requests for power at the seat so they can use their personal electronic devices to fully enjoy the streamed in-flight entertainment and upgraded connectivity systems provided by the airlines, while remaining fully charged when they land.”
Statistics show that 97% of passengers travel with personal electronic devices, and a large percentage carry more than one. For over 20 years, Astronics AES has supplied intelligent power management systems for airline passengers’ benefits. The EMPOWER system is currently in service with over 230 airline and OEM customers with over one million power outlets installed.
Zodiac
Here is part of a recent news release we received: “Today we are announcing the consolidation of all Zodiac Seats California (ZSC) operations from Rancho Cucamonga, California to our Gainesville and Chihuahua facilities. We anticipate this consolidation will take six to nine months to fully complete. This consolidation of operations is in line with Zodiac Aerospace’s focus on optimizing the global industrial footprint of the Group.”
Airbus
Airbus’ A340 laminar-flow “BLADE” test demonstrator aircraft (A340-300 MSN001) has made its successful maiden flight for the EU-sponsored Clean Sky “Blade” project. The aircraft, dubbed “Flight Lab”, took off from the Tarbes aerodrome in southern France at local time 11:00, and after a series of successful tests it landed at Airbus’ facilities in Toulouse Blagnac. The overall flight time was 3hrs/38mins.
The BLADE project – which stands for “Breakthrough Laminar Aircraft Demonstrator in Europe” – is tasked with assessing the feasibility of introducing the technology for commercial aviation. It aims to improve aviation’s ecological footprint, bringing with it a 50% reduction of wing friction and up to five percent lower CO2 emission. Airbus’ A340 Flight Lab is the first test aircraft in the world to combine a transonic laminar wing profile with a true internal primary structure.
On the outside the aircraft is fitted with two representative transonic laminar outer-wings, while inside the cabin a highly complex specialist flight-test-instrumentation (FTI) station has been installed. The extensive modifications to the A340-300 test-bed aircraft took place during the course of a 16-month working party in Tarbes, with the support of numerous industrial partners across Europe. Today’s first-flight marks the kick-off of the Blade flight-test campaign to explore the wing’s characteristics in flight. A key goal of Blade is to be able to measure the tolerances and imperfections which can be present and still sustain laminarity. To this end, Airbus will simulate every type of imperfection in a controlled manner, so that at the end of the campaign the tolerances for building a laminar wing will be fully known. The flight Lab will perform around 150 flight hours in the coming months.
Sepang Aircraft Engineering (SAE), an MRO centre based in Kuala Lumpur, Malaysia, partially owned by Airbus since 2011, has become a fully owned Airbus subsidiary, following the acquisition by Airbus of its remaining shares.With this acquisition, SAE becomes an integral part of the Airbus Customer Services network and is set to represent a key element of Services by Airbus’ growth strategy in the dynamic Asia Pacific market.
JetBlue
JetBlue will become the first airline to introduce Airspace by Airbus on the A320 Family, the agreement was introduced at APEX Expo. JetBlue customers will experience this newest A320 Family cabin aboard JetBlue aircraft starting in late 2020. Highlights of the new Airspace cabin in the A320 Family include: a unique welcome experience. In particular, a customizable welcome effect is extended throughout the cabin by a central lighting strip which is visible even with open bin doors during boarding. The A320 Family cabin with Airspace features the industry’s largest overhead bins, whose conformal exterior profile facilitates smooth boarding. Throughout the cabin passengers will appreciate the increased interior width, the soothing ambience of the latest full-color LED lighting, and a contemporary lavatory design with new comfort features.
Inmarsat
Inmarsat (ISAT.L), the world’s leading provider of global mobile satellite communications, announced that AirAsia Group has selected its next-generation GX Aviation inflight broadband solution for more than 120 Airbus aircraft. This contract supports Inmarsat’s strategy of providing airlines with tailored scalable capacity by designing, owning and operating a global network of High-Throughput Satellites (HTS). GX Aviation is the world’s first in-flight connectivity solution with seamless, reliable high-speed global coverage provided through a single operator. It is the only service in the market that guarantees minimum data rates, ensuring that airline passengers can browse the internet, stream videos, check social media and more during flights, with an onboard connectivity experience comparable to the mobile broadband services they may receive on the ground.
Also, AirAsia Group will connect to the GX network using exclusive new JetWave terminals produced by Honeywell Aerospace. The terminals are designed for ease of installation and maintenance to assure the lowest downtime for any cabin connectivity solution in the market, allowing installation with minimal labour and using standard tools available in maintenance hangars.
SITAONAIR
International carrier Philippine Airlines (PAL) has selected SITAONAIR to make its global high-speed connected passenger experience ambitions a reality over GX Aviation. SITAONAIR is to deliver the upgrade of PAL’s existing B777 Swift Broadband fleet to GX Aviation, powered by Honeywell’s JetWave SATCOM terminal, together with line-fitting PAL’s new Airbus A350s and A321s. Once complete, SITAONAIR will activate its rich nose-to-tail package of bespoke inflight connectivity (IFC) services, achieving a significantly enhanced and consistent connected experience for passengers and cabin crews. SITAONAIR’s award-winning, intuitive Internet ONAIR portal offers contextualized and personalized content, satisfying digitally-demanding passengers over GX connectivity by mirroring their ‘at-home’ experience, and with free 30-minute Wi-Fi sessions and cheaper price plans on offer to all passengers. In addition, PAL customers will benefit from SITAONAIR’s mobile connectivity over GX via SITAONAIR’s Mobile ONAIR; ONAIR Plug’s secure online channel for inflight card transactions and crew and passenger interactions; plus integrated, connected inflight entertainment from Zodiac Inflight Innovations. The close partnership between SITAONAIR and Zodiac Inflight Innovations with PAL plays an important part in the program’s success.
Immfly
Immfly, based in Barcelona, was selected by easyJet to launch its IFE product on the basis of the high-performance digital platform it provides. It offers the flexibility to dynamically deliver a broad range of digital content and innovative tools to effectively engage customers. Immfly’s product is at the forefront of the industry providing passengers with the ability to access a unique in-flight entertainment experience with personalized capabilities through their own smart devices, rendering old built-in monitors obsolete. Immfly, already a leading provider of in-flight sales and communications services in Europe, expects to reach 100 million connected passengers by 2018 following its partnerships with airlines which include carriers such as Iberia Express, Volotea, XL Airways and now easyJet. Rakuten, a global leader in internet services with over 1 billion members worldwide and an ecosystem of more than 70 services, will be the Official Entertainment Sponsor of easyJet’s in-flight entertainment service integrated by Immfly.
More Stuff:
- Perhaps a new type of Shottky diode will be used in aircraft engines as a source of electricity! Scientists Develop A Device To Turn Car Exhaust Into Renewable Energy
- This had to happen sooner of later – kill the web! It’s time to kill the web – Mike’s blog
- You had better stay up on electric flight – Boeing has! Boeing Forms New Innovation Cell; Invests in Tech Companies Upskill, Zunum Aero – Apr 5, 2017
- If you need some research for a paper on the value of aviation, this might help
- What a safe aviation data storage technology? The answer is virtually un-hackable – IBM brought back the magnetic tape storage by setting up a new record in Data Transfer Rate – Latest Hacking News
- Interiors retrofits? Interiors Interruption?
- It is probably a good idea to watch game changer companies to see where technology is taking businesses and the “future” so here is a link to a presentation from CB Insights outlining some of the futurist developers like Next Gen Computing, Geospatial Data, and more.
Kontron to supply cabin Wi-Fi hardware and certification services
Long Beach, California | September 27, 2017–Kontron, a leading global provider of embedded computing inflight entertainment and connectivity equipment, today announced that it has signed an agreement with Air Esurfing, a fully owned subsidiary of Air Media online Group, to jointly explore China aviation Wi-Fi market. The Air Esurfing system solution will integrate Kontron’s ACE Flight™ Server and Cab-N-Connect™ wireless access point for inflight connectivity applications that utilize China’s Ku-band and Ku/Ka-band HTS capacity. Kontron is also providing STC certification services to ensure that the new system is qualified to meet the safety and regulatory standards required for commercial aviation in China.
Kontron’s certified IFE&C open platforms were selected for their ability to help reduce the complexity and costs associated with developing next-generation “connected aircraft” systems including new Satcom applications. The new services from Air Esurfing are scheduled to be launched in early 2018 with pilot programs that will offer in-cabin video streaming and inflight Internet connectivity to passengers on China domestic flights.
“Kontron is very pleased to sign this cooperation agreement with Air Esurfing, who is a key player in the rapidly growing China IFE&C market, ” said Andy Mason, Vice President of Technology at Kontron America. “We can support this partnership with cabin and connectivity products already certified and flying with the Chinese airlines, plus the regional and global experience that enables fast time-to-market.”
“Kontron brings proven hardware solutions for inflight WiFi and connectivity,” said Mr. Zhou Hong, General Manager Air Esurfing. “These enabling platforms will enable us to offer the most state-of-the-art IFE&C services to the domestic Chinese market.”
Every so often we get a call from our friend Craig Foster at Valour Consultancy and while we talked IFE, he noted that Valour Consultancy had published a piece he had written on Bizjet IFE. We were interested because in the past, the Bizjet folks usually embraced technology before the IFE world did. We thought you might like to see if that is still true and the folks at Valour (and Craig) kindly provided a copy for our readers to view. If you wish to contact Craig, you can reach him at craig.foster@valourconsultancy.com – and thanks!
The Market for In-Flight Connectivity on VIP and Business Aircraft – Valour Consultancy
Last month, Valour Consultancy released its latest analysis of the market for in-flight connectivity on VIP and business aircraft. The study draws upon our considerable expertise in analysing the adoption of in-flight connectivity (IFC) in commercial aviation and is the result of a rigorous primary research phase consisting of numerous interviews with key players from across the industry.
The report finds that, globally, there were 19,131 IFC systems on VIP and business aircraft at the end of 2016. L-band was by far and away the most dominant connectivity technology with cumulative connections representing 75% of the total. A large proportion of this is accounted for by Iridium, whose systems support in-flight satellite phone operations on almost 10,000 aircraft. The remainder of L-band connections are accounted for by Inmarsat, which has seen adoption of SwiftBroadband (SBB) pick up rapidly in recent years.
Uptake of Gogo’s Air-to-Ground (ATG) options has been similarly brisk in recent years. By the end 2013, there were 2,047 terminals connected to the Gogo Biz network. This had increased to 4,172 three years later.
ATG and L-band both have room for further growth in coming years, too.
With respect to ATG, there will likely be continued interest in Gogo’s solutions over the course of the forecast period (2016 to 2026), especially now that the company is close to commercial launch of Gogo Biz 4G and plans to have its next-generation ATG network, which will offer peak network speeds of more than 100 Mbps, up and running by 2018.
When you add SmartSky Networks and its 4G network into the mix, as well as the Inmarsat European Aviation Network (EAN), it is apparent that there remains plenty of potential for ATG technology. Though it is yet to be officially confirmed whether the EAN will be used by the business aviation industry, there appears to be consensus that it would work very well on board private aircraft.
While Inmarsat is reportedly seeing a lot of interest from operators looking to upgrade from lower-bandwidth IFC systems to Jet ConneX, the company is also working on increasing the performance of the L-band technology used for SBB. Iridium, meanwhile, recently celebrated the successful launch of the second batch of Iridium NEXT satellites. Upon completion of the constellation in 2018 and the start of commercial service one year later, the so-called Iridium Certus solution will likely find favour among operators of those small- and medium-sized business jets less suited to the fitment of bulky radomes.
Adoption of Ku-band technology on VIP and business aircraft appears to have an equally rosy future – a view presumably shared by new market entrants, Panasonic Avionics and Global Eagle, as well as Gogo, which recently announced its first business aviation customer for 2Ku. Right now, there are some 500 Ku-band systems in operation on VIP and business aircraft and the vast majority of these are accounted for by ViaSat and its Yonder system (although it’s no longer referred to as Yonder, to shift the focus towards the ViaSat brand). Panasonic and Global Eagle representatives have not been shy in admitting that they are gunning for ViaSat in this market.
However, ViaSat appears content to focus on ensuring existing clients migrate to its Ka-band technology – a sensible strategy given the ongoing success of its Exede in the Air product in commercial aviation. Now that ViaSat-2 has finally launched after several setbacks, there will soon be a considerable amount of additional Ka-band capacity for business jets flying between North America and Europe. Additionally, the company says that it will have its three planned ViaSat-3 satellites operational around 2020 making ViaSat the only rival provider of global Ka-band capacity to Inmarsat.
By 2020, ViaSat could have some catching up to do if the take up of Jet ConneX is anything to go by. Having debuted in November 2016, there were an estimated 30 aircraft fitted with the solution by the turn of the year. Inmarsat has previously stated that it expects to see 150 Jet ConneX-equipped aircraft by the end of 2017 and has a goal of connecting 3,000 jets by 2020 (although it is apparently now upgrading its forecasts).
Overall, we are forecasting that by the end of 2026, there will be 37,710 IFC systems installed on VIP and business aircraft – almost double the current total. The reader should, of course, note that these numbers do not refer to the number of aircraft with IFC. In fact, it is estimated that today, around 1,000 to 2,000 aircraft with Iridium satellite phones also make use of Inmarsat’s SBB network. Likewise, Gogo has publicly reported 4,172 connections to its Gogo Biz service and acts as the service provider for 5,286 installed Iridium terminals as well as 214 installed SBB terminals (a total of 9,972 connections – all accurate and up to date at the end of 2016). However, the firm delivers services to 7,400 aircraft implying many are flying with more than one system installed.
The following factors have driven interest in IFC on VIP and business aircraft and will continue to do so in future:
- Owners of business aircraft fitted with connectivity equipment some time ago will be keener to take advantage of more recent advances in satellite and hardware technology.
- The ‘Uber-isation’ of the private aviation industry is increasingly being talked about and with e-commerce replacing traditional methods of sourcing and booking a business jet, easy comparisons between different operators and aircraft means that customers can see where one aircraft has IFC and another doesn’t. This transparency will further encourage operators to improve their offerings.
- As well as the increased comparison between business jets and their features because of new e-commerce initiatives, business aviation is having to compete with the rapid adoption of IFC in commercial air transport perhaps making a first class connected seat more attractive than a private jet with no in-flight Wi-Fi.
- Competition is hotting up with the likes of Global Eagle, Panasonic Avionics, BizJetMobile and SmartSky Networks all new to the market or preparing to enter.
- The launch of several new high throughput satellites (HTS) and the prospect of cheaper capacity and faster services is having an extremely positive effect on the market with service providers having inked several new deals in recent years.
- The connected aircraft and e-Enablement is beginning to resonate more and more as a way to drive operational efficiencies and help underpin the IFC business case.
Some of the remaining challenges to more widespread adoption of IFC on VIP and business aircraft are as follows.
- Production of new business jets has stagnated and consequently reduced the possibility of line-fit offerability deals for many IFC providers and limited their opportunities for growth.
- Fitting an aircraft with a sizeable antenna to enable IFC impacts aerodynamics and increases fuel burn, thereby driving up operating costs. Additionally, many smaller business jets are currently unable to accommodate larger Ku- and Ka-band antennas on their fuselages.
- Current generation Ku-/Ka-band systems lock operators into the service provider (so the hardware is not provider agnostic) and should there be a desire to switch, a very expensive refit ensues.
- While commercial airlines tend to fly set routes at specific times of day, business jets are more sporadic. One day they may be flying domestically in the US, the next they may be making their way to China or Russia. This uncertainty means high-bandwidth IFC solutions that offer global coverage – which are currently few in number – are perhaps more compelling.
- Many in the industry are concerned that as we move towards realising the vision of the fully-connected aircraft, the opportunity for cyberattacks will increase. The main worry seems to be that such systems will allow wrongdoers to control aircraft and manipulate commands issued to the aircraft. It should be noted that flight control systems are purposefully isolated from all other communications networks on-board the aircraft.
- Selling an IFC service based on deployment events that have not happened is a significant challenge and operators understandably give much more credit to satellite assets in space than on paper. Further, a delay to the launch of any service has the potential to scare prospective customers away or send them into the arms of rivals. Unfortunately, such delays are all too commonplace for many much-anticipated IFC solutions.
Published in May 2017, “The Market for In-Flight Connectivity on VIP and Business Aircraft” provides an unrivalled insight and analysis into the current and future deployment of IFC on these aircraft. The number of IFC systems installed in 2016 is quantified with forecasts out to 2026 and data is segmented by fitment type, aircraft size, frequency band and geographic region with a full qualitative discussion of the key trends at play in support of this. The report also sizes the market for both service revenues and key enabling hardware, in addition to market share estimates for service providers and capacity providers. A chapter profiling key players is presented, too.”
Airbus and Boeing are going head-to-head for the lead into the MoM market and the airlines are looking for a midsize plane that costs less and will seat somewhere between 225 and 270 passengers, and fly nearly 5000 miles, in roughly 9 hours. Imagine a chart where the vertical axis represents the number of passengers/payload while the horizontal axis represents nautical miles/range.
Before getting into the plane action, lets review the Middle of the Market we keep referring to (MoM) – and here is the view from the folks at Boeing. Picture the middle market as a big oval that covers passenger capacity/load of 175 to 375 passengers and a range of approximately 3,000 to 6,000 nautical miles. However, this market is so large that it also includes jetliners at both the smaller end and larger end of the scale. The oval pictured in the link above represents the “new midsize airplane sweet spot”, which is more like 200 to 275 travelers in a two class configuration, with a reduced range of 3,500 to 5,500 nautical miles. Interestingly, the only current plane that is in this newly identified midsize market circle is the twin-aisle B767-200, which hits the oval target just about dead center!
Boeing is developing a business case and solution for the MoM demand and their answer is a new development that some call the B797X. The real issue is twin aisle versus single.
Now, lets look at where the single aisle B737 MAX series planes are with respect to the midsize sweet spot – where, no doubt, the action will be for the next few years. Remember, we are focusing only on Boeing in this issue, but we will talk a bit about Airbus in a later Hot Topic. Here is where the Boeing “bottom” of the MoM plane products are today:
Boeing B737 MAX 7
1 Class Seating Config. – 150 Pax.
2 Class Seating Config. – 138 Pax.
Max. Seating Config. – 172 Pax.
Range – 3,800 NM
Wingspan – 35.9 M / 117 ft. 10in.
Length – 35.6 M / 116 ft. 8 in.
Height – 12.3 M / 40 ft. 4in.
Weight – 177,000 lbs.
Price – $92.2 Million
Boeing B737 MAX 8
1 Class Seating Config. – 174 Pax.
2 Class Seating Config. – 162 Pax.
Max. Seating Config. – 200 Pax.
Range – 3,620
Wingspan – 39.5 M / 117 ft. 10 in.
Length – 39.5 M / 129.8 ft.
Height – 12.3 M / 40 ft. 4in.
Weight – 181,200 lbs.
Price – $112.4 Million
Boeing B737 MAX 9
1 Class Seating Config. – 204 Pax.
2 Class Seating Config. – 178 Pax.
Max. Seating Config. – 220 Pax.
Range – 3,595 NM
Wingspan – 39.5 M / 117 ft. 10 in.
Length – 42.2 M / 138.4 ft.
Height – 12.3 M / 40 ft. 4in.
Weight – 194,700 lbs
Price – $119.2 Million
As we noted earlier, the “new midsize market” is a smaller circle on the pax/range chart and the existing single aisle aircraft are right on the edge. Some experts are noting that the “new” midsize market concept could be difficult for Boeing because of existing B737 landing gear length limit problems coupled with the desired take-off rotation increase due to a longer single-aisle body – not to mention the new wing length needed for more load lift and potential composite additions to reduce load weight.
While looking at an estimated 2025 entry, Boeing has some time to make the decision, but they will have to consider other aspects such as aircraft model growth, fuel burn, and competition. Furthermore, we understand that over 60% of the operators want a twin-aisle wide body versus a single-aisle narrow body, with seating expectations covering 150 to 249 pax – but the jury is still out on models and respective seat numbers.
If you remember the B757 (single-aisle) and the B767 (twin-aisle) were designed to cover a larger flight range and passenger payload solutions at each end of the payload vs. range spectrum. We now have the requirement that Boeing focus on the center and build one plane (with derivatives) to solve the “market gap” problem and that will probably include more passenger comfort and expanded IFEC capability. IFExpress is betting on a twin! Further, the Boeing 797X will likely cover the 220-260 seat capacity with a designed range of some 4,500-5,000 nautical miles. But the big deal for Boeing would be the possible $150B in potential revenue!
Rockwell
Rockwell Collins will now bring high speed, secure worldwide KA-band connectivity to government aviation customers by expanding its Value Added Reseller (VAR) arrangement for Inmarsat’s Global Xpress (GX) service. Rockwell Collins has already been providing GX and JX services to commercial and business aviation customers through previous VAR agreements.
SITA
Meet Kate! SITA Lab, which explores the future of technology in air travel, has unveiled KATE, an intelligent check-in kiosk that will autonomously move to busy or congested areas in the airport as needed, promising to relegate check-in queues to the past.
Using various data sources – including flight and passenger flow information – KATE can identify where additional check-in kiosks are required to reduce passenger queue times at check-in. KATE uses existing SITA data systems such as Day of Operations Business Intelligence and FlightInfo API.
Multiple robotic kiosks can be automatically or manually deployed simultaneously and in formation to assist passengers, providing airports and airlines greater flexibility in managing peaks in passenger flow. The kiosks can also communicate through a Cloud service to ensure that the right number of kiosks are at the right position when needed, making them highly responsive to changes in the airport. A design patent application for the kiosks is currently underway.
Renaud Irminger, Director of SITA Lab, said: “The peak and troughs in the flow of passengers presents a challenge to many airlines and airports and we have been approached by many customers requesting a solution. They want kiosks which can be easily deployed when and where they are needed. Building on SITA’s successful AirportConnect Open platform, and our previous work with robotics, KATE leverages new technologies to provide operators much more flexibility and efficiency in the way they will use their kiosks in future.”
SITA’s cutting-edge robotic kiosk makes use of geo-location technology to find its way through the airport. KATE will use Wi-Fi to connect to vital airline and airport systems, dispensing with the need for cabling or other fixed attachments. This allows the kiosk to move around freely across the airport terminal, using obstacle avoidance technology to avoid bumping into people or things.
KATE and her fellow robotic kiosks will automatically return to their docking stations when they are low on power or need to be resupplied with boarding passes or bag tags.
One of the key benefits of SITA’s autonomous kiosk is that it can be deployed anywhere inside the airport as well as other offsite locations such as train stations. This is particularly relevant during periods of disruption – such as weather delays or flight cancellations – where additional kiosks can be moved from landside to airside to check-in large numbers of rebooked passengers. KATE provides passengers access to her easy-to-use interface to check-in and print bag tags.
KATE follows in the footsteps of LEO, SITA’s fully autonomous, self-propelling baggage robot launched at the 2016 Air Transport IT Summit in Barcelona, Spain last year. For a better view, check out this video – https://youtu.be/oQ69r-2VX-I
AIRBORNE WIRELESS NETWORK, CA was granted experimental operating from FCC to launch ground/flight testing (using two Boeing aircraft) of its demonstration system as part of development of Infinitus Super Highway air-to-air communication system. Further they have been granted a certificate by the FCC that will allow it to conduct ground and flight tests of their demonstration system of the Infinitus Super Highway, a high-speed broadband network that will link commercial aircraft in flight.
BOEING
Boeing All-Electric Satellite for SES Will Help Improve In-Flight Connectivity and Enable Other Traffic-Intensive Data Applications. Built for SES of Luxembourg, the 702 satellite is Boeing’s fifth with all-electric propulsion; design includes metallic 3-D printed parts.
The satellite will bolster connectivity for Wi-Fi and entertainment services on flights over North America, Mexico and Central America. It will also serve the government, enterprise and maritime sectors. This 702-model satellite also demonstrates that using 3-D printed parts can improve affordability and production. More than 50 such metallic parts are on the vehicle in the primary structure.
This is the fifth Boeing satellite to be deployed with a highly efficient all-electric propulsion system.
SES-15 has a hybrid payload, including additional Ku-band wide beams and Ku-band High Throughput Satellite (HTS) capability, with connectivity to gateways in Ka-band.
The U.S. Federal Aviation Administration’s (FAA’s) safety efforts will also benefit from the satellite as SES-15 carries a Wide-Area Augmentation System (WAAS) hosted payload for the FAA.
SES has ordered 12 Boeing satellites since 1990, including SES-15. SES-15 is the operator’s first 702 all-electric satellite in its fleet.
Gogo
Global broadband connectivity provider Gogo Business Aviation is announcing that German aircraft manager and charter operator K5-Aviation is its first 2Ku business aviation customer in Europe.
2Ku is a unique, dual-antenna system developed by Gogo to bring global streaming-capable internet connectivity to large aircraft. The technology benefits from global coverage and the redundancy of more than 180 satellites in the Ku-band.
Also today, Gogo is unveiling a new suite of smart cabin systems – SCS Elite and SCS Media. Both are highly integrated cabin in-flight entertainment and voice solutions that can be personalized to fit the specific needs of passengers on a given flight.
SCS systems, according to Gogo, “can be installed on virtually any plane, big or small, flying anywhere around the globe, and we created it to be a simple, powerful way to integrate all the necessary technology on board for an enjoyable passenger experience.”
Also, If you are interested in who the travelers of tomorrow are, why their inflight preferences matter, why being mobile is so important to future travelers, expectations around future connectivity, and what role personal devices play in flight – check this download out from Gogo: Global Traveler | Gogo . We should also note that Gogo has been chosen by Airbus as a lead supplier for its High Bandwidth Connectivity (HBC) program. Being part of Airbus’ HBC program means airlines can place future aircraft orders with Airbus and have Gogo’s 2Ku technology installed at the factory on all major fleet types. Those aircraft are then delivered with the technology already installed and ready for service on day one. We wonder what Boeing is gonna do?
In this week’s edition of IFExpress we have Gogo, APEX, Boeing and a few other bits of information – so let’s get started!
Gogo
Gogo is announcing K5-Aviation as its first 2Ku business aviation customer in Europe, marking a significant milestone for the company. The first airframe in business aviation that will fly with Gogo’s 2Ku technology is an Airbus ACJ319 operated by K5-Aviation, a leading operator of ACJ aircraft, based in Germany. Fokker Services B.V. managed the 2Ku installation design and system integration including the EASA STC. Installation was performed at its facilities in Hoogerheide, The Netherlands.
“This is a great day for K5-Aviation because it brings Gogo’s newest technology to our cabin which means our passengers can stay connected almost anywhere we fly around the globe,” said Luca Madone of K5-Aviation. “Productivity during flight will increase with 2Ku, which will allow our passengers to drive their business forward even when traveling. They will also have the ability to live stream news, entertainment and sporting events.”
Gogo’s 2Ku technology delivers industry-leading performance globally, which means passengers can do the same things they do on the ground. For business aviation, that means live video conferencing, fast Internet browsing and streaming video. 2Ku is designed to take advantage of innovations happening in space and is compatible with newer high-throughput and low-earth orbit satellites when they become available. This means the technology will get better in time without having to touch an aircraft. This flexibility means Gogo’s customers can be confident the system is future ready and ahead of the curve from a technology perspective.
2Ku is a unique dual antenna system developed by Gogo to bring global streaming-capable Internet to large aircraft. The technology benefits from global coverage and the redundancy of more than 180 satellites in the Ku-band. With more than 170 systems installed today across eight airlines on five continents, and more than 1600 total aircraft awarded to 2Ku across 14 of the largest airlines around the globe, 2Ku is one of the most successful in-flight connectivity products ever developed.
We further note that Gogo discovered that nearly 50 percent of millennial travelers expect their connected experience in the air to be the same as on the ground. This key finding from Gogo’s Global Traveler study The Travelers of Tomorrow shows that connectivity anywhere and everywhere is no longer a hope, it’s an expectation. This study uncovers in-flight connectivity trends from “future travelers” between the ages of 18 and 35, because their preferences will ultimately shape the future of travel. “Passengers simply expect more from inflight connectivity today — no longer is there a distinction between enjoying movies at home, sending emails from a café or binge watching at 35,000 feet,” said Alyssa Hayes, Director of Insights at Gogo. “As our research suggests, younger travelers are most comfortable with headphones on, laptop open and smartphone in hand. As the leader in inflight connectivity, we can help airlines keep pace with passenger expectations now and in the future with Gogo 2Ku high speed connectivity.”
Not only are these passengers expressing hopes for the future, but they also are making travel decisions today based on connectivity:
While 90 percent of future travelers have a preferred airline, 48 percent said they would choose another airline if Wi-Fi was not available on their preferred flight.
Future travelers are more likely to multi-task on their devices during flights with 46 percent of the 18 to 35 age bracket using Wi-Fi and watching a movie or show on their device compared to just 33 percent of travelers older than 35 doing so.
Ninety-two percent of future travelers are interested in using their own device in flight, and 48 percent said they prefer to stream their own content to their own device.
Sixty-three percent of future travelers think more flights should offer Wi-Fi, and 56 percent of them use their smartphone on the plane compared to just 27 percent of older travelers.
Gogo’s 2Ku technology allows passengers to have the same experience in the air as on their couch at home. The new technology enables streaming video, fast browsing and multi-device viewing. 2Ku can be found today on more than 170 aircraft across several global airlines. More than 1,600 total aircraft are slated to receive the technology representing 13 global airlines.
The Travelers of Tomorrow study is the first of the 2017 Gogo Global Traveler Research Series, Gogo’s global study that examines travelers’ inflight habits, behaviors and preferences. It covers 15 countries across six regions around the world and includes data collected from more than 4,500 travelers who flew within the last year. To learn more, visit gogoair.com/globaltraveler
We should also note the following: Gilat Satellite Networks Ltd. announced that its in-flight connectivity (IFC) solution demonstrated unprecedented end-user throughput of over 100Mbps in Gogo’s live airborne media and investor event. Gilat’s airborne modem powers Gogo’s 2Ku service and will be installed in over 1600 aircraft across more than 13 airlines, commencing this year. On May 9th 2017, Gogo hosted a major, high visibility industry event on their Boeing 737 test plane, the “Jimmy Ray.” Analysts and media applauded Gogo’s 2Ku system and Gilat’s modem, which demonstrated over 100Mbps performance. This is acknowledged to be the highest performance ever achieved onboard a commercial aircraft, as well as demonstrating continuous service with excellent user experience. The test flight not only confirmed its noteworthy throughput and user experience, but also successfully demonstrated interoperability capabilities of Gilat’s aero modem with the aircraft’s Communication (IFEC) avionic system. As previously announced, Gogo selected Gilat to provide the onboard VSAT modem and satellite baseband infrastructure for its next generation IFC solution. The recent flights were done upon completion of Supplement Type Certifications (STC) for this system for Boeing and Airbus aircrafts.
A Possible InFlight Electronics Ban
While the US Government has neither confirmed or denied the possibility of an “All Europe” inflight laptop ban into the US, it is expected this month, although some experts question whether it will be as extensive as all inclusive as the one from 10 Middle East airports today. Also unknown if the rumored laptop exclusions will be surrendered at the gate or relinquished to the baggage hold during check-in at the ticket counters – not to mention flights that progress through European airports. We want to point out that banned PED (iPads, tablets, laptops) types are an unknown at the time of this writing. But if you think about it, getting your data on a phone and learning to love IFE again, might be a good idea. We do know that London’s Heathrow has begun the process of early screening, but like everybody else – they are waiting for the US to demand the change.
APEX And The Electronics Ban
APEX (Airline Passenger Experience Association), a four-decade old international airline trade association, called for a hold on the electronics band expansion to Europe as (they) hosted a biometrics workshop with major airlines and the U.S. Department of Homeland Security (U.S. DHS) Customs and Boarder Protection (CBP).
Speaking at the Aviation Festival Americas with more than 60 airlines, APEX CEO, Joe Leader, pushed suggested “green listing” passengers as cleared to carry electronics on restricted routes through the biometric facial recognition initiative being put forward by the U.S. DHS CBP in place of the electronics ban.
“Having the electronics ban spread to the European Union for flights to the United States would damage the personal freedoms integral to international air travel. We must stand together with government solutions for personal electronics that enable both security and accessibility for our airline passengers worldwide,” said Leader. “Biometric identification of passengers that are pre-cleared to travel with electronics would enable a viable potential solution with the U.S. DHS CBP ready to provide immediate technological facilitation.”
APEX sounded the alarm in March when the airline electronics ban started as we warned that it could easily spread as reported today. In the United States alone, carriers in less than 30 days have removed more than one million annual passenger long-haul seats from the airports affected by the United States electronics ban alone.
“As the leading international airline association focused on passenger experience, APEX has actively and repeatedly expressed that the U.S. Department of Homeland Security and U.K Department of Transport should institute government approved solutions for electronics rather than the existing airline electronics ban.” Leader stated. “Fighting potential threats means finding government solutions that do not take the laptops, tablets, e-readers, cameras, and large phones out of the hands of the millions of law-abiding passengers that use them every day. We owe our air travelers worldwide the best options to make their flights enjoyable and productive.”
Results from APEX’s Global Passenger Survey released last year, show airline passengers frequently bring their personal electronics devices on-board aircraft for use in-flight:
- 43% of worldwide airline passengers bring a tablet device on-board with 70% of these passengers using their tablet device in-flight;
- 38% of worldwide airline passengers bring a laptop computer on-board with 42% of these passengers using their laptop in-flight; and
- 22% of worldwide airline passengers bring e-Readers on-board with 77% of these passengers using their e-Reader in-flight.””
You might also want to read this ExtremeTech piece on the subject as they point out that a cabin full of laptops placed in cargo containers just might put another problem in a place (in the baggage hold) where fire control may have limited capability to affect a potential disaster. US Considering Banning All Laptops on Flights From Europe – ExtremeTech
Boeing
The fourth Boeing [NYSE: BA] Inmarsat-5 satellite, which was launched yesterday, will noticeably expand the high-speed broadband service available through Inmarsat’s Global Xpress network after the satellite becomes fully operational later this year.
The Inmarsat-5 satellites are uniquely able to provide seamless communications coverage through fixed and steerable beams that can be adjusted in real time to accommodate demand surges. “Inmarsat-5 F4 joins our existing Global Xpress constellation, which is already being adopted as the new standard in global mobile broadband connectivity by companies, governments and communities around the world,” said Michele Franci, CTO, Inmarsat. “Boeing has been an outstanding partner in our journey to make Global Xpress a reality.”
This is the fourth Inmarsat-5 satellite Boeing has built for Inmarsat’s Global Xpress network. After reaching its final orbit, the satellite will undergo testing and checkout before being declared operational. “Our partnership with Inmarsat has enabled the creation of the world’s only commercial global, mobile Ka-band network,” said Mark Spiwak, president, Boeing Satellite Systems International. “This unique achievement is an example of Boeing’s continuing commitment to deliver reliable, affordable and innovative solutions for our customers.”
Boeing has a strategic marketing partnership with Inmarsat and currently provides both military Ka-band and commercial Global Xpress services to U.S. government customers.
For more information on Defense, Space & Security, visit www.boeing.com.
Boeing and Primera Air today announced an order for eight 737 MAX 9 airplanes, valued at more than $950 million at list prices. The agreement also includes purchase rights for four additional 737 MAX 9s and a lease agreement for eight more airplanes from Air Lease Corporation.
The 737 MAX 9 will form the backbone of the low-cost airline’s future as it seeks to commence flights between Europe and North America. Primera Air plans to use the MAX 9’s auxiliary fuel tanks to lower trip costs and maximize the range to accommodate flights connecting Europe to the east coast of the U.S.
“The 737 MAX 9 will allow Primera Air to open up nonstop, long-haul routes from Europe to the U.S. with unmatched economics,” said Andri M. Ingolfsson, President, Primera Air. “This aircraft has a lower per-seat cost than the current wide body aircraft servicing the transatlantic and the capabilities of this aircraft type will change the economics of the industry. This will open up fantastic possibilities for growth for Primera Air in the future.”
Scandinavia’s Primera Air is an all-Boeing carrier currently operating a fleet of nine Next-Generation 737-700s and 737-800s with flights to more than 70 airports in Europe. Primera Air is part of the Primera Travel Group that operates travel agencies and tour operating companies in Sweden, Denmark, Norway, Finland, Iceland and Estonia.
The MAX 8 and 9 will be followed in 2019 by the smaller MAX 7 and higher capacity MAX 200, while studies and customer discussions continue on further growing the family. The 737 MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. The 737 MAX has accumulated more than 3,700 orders from 87 customers worldwide.
Delta orders 30 additional A321s
Delta Air Lines has placed an incremental order for 30 firm A321ceo aircraft. This order follows three previous Delta orders for the Current Engine Option version of the largest Airbus A320 Family member. The airline took delivery of its first A321 in March of last year. Delta now has ordered a total of 112 A321s, each powered by CFM56 engines from CFM International.
All of Delta’s A321s will feature fuel-saving Sharklets – lightweight composite wingtip devices that offer up to 4 percent fuel-burn savings. This environmental benefit gives airlines the option of extending their range up to 100 nautical miles/185 kilometres or increasing payload capacity by some 1000 pounds/450 kilograms.
Many of Delta’s A321s are being delivered from the Airbus U.S. Manufacturing Facility in Mobile, Alabama. The airline received its first U.S.-manufactured A321 last year. By the end of 2017, the Airbus facility in Mobile is expected to produce four aircraft per month, most going to Airbus’ U.S. customers.
As of the end of April, Delta was flying a fleet of 187 Airbus aircraft, including 145 A320 Family members and 42 A330 widebodies.
Rumors
A rumor monger told us that this past Thursday was a bad day for a large IFEC outfit and that 45+ folks on the West Coast were let go, as well as, at least 25 on the East Coast. We won’t mention names as our request for more information was ignored.
Gogo secures capacity on 12 transponders across two SES satellites, enabling airlines to meet growing passenger demand for inflight connectivity over the U.S. and Canada
Luxembourg | April 4, 2017– SES S.A. (Euronext Paris and Luxembourg Stock Exchange: SESG) today announced new satellite capacity deals with Gogo (NASDAQ: GOGO) to meet the growing demand for high-speed inflight connectivity services on travel routes over the U.S. and Canada. The new contracts with Gogo include capacity on 12 additional Ku-band transponders, as well as supporting ground infrastructure.
With these latest agreements, Gogo has now signed important capacity deals across 11 SES satellites around the world, including significant long-term agreements for Ku-band high throughput (HTS) capacity onboard two SES satellites (SES-14 and SES-15) scheduled for launch this year.
SES continues to build a global network of multi-layered, multi-band capacity to meet the specific needs and requirements of the evolving aeronautical market.
“We’ve always said that our 2Ku solution is the most future-proof solution on the market because it allows us to improve the experience without touching an aircraft. This latest capacity deal with SES allows us to add bandwidth over some of the busiest air travel routes over the U.S. and Canada, where our airline customers continue to see passenger demand for high-speed connectivity on the rise,” said Anand Chari, Gogo’s Chief Technology Officer. “SES, with its global satellite fleet, intelligent ground infrastructure, and nimble approach to meeting our evolving needs, is playing a pivotal role in how we are leveraging satellites to meet the needs of global aviation.”
“SES has a robust, global network of multi-layered, multi-orbit and multi-band satellite capacity that is enabling leading inflight connectivity providers, such as Gogo, to create exciting new services. This allows airlines to offer their passengers a great connected experience anywhere they go,” noted Elias Zaccack, Senior Vice President of Global Mobility for SES. “This latest capacity agreement with Gogo signals the continued demand for high-speed connectivity and high quality entertainment over one of the busiest aero markets in the world and further demonstrates the strength of SES’s global Mobility solutions.”
FliteStream F-310 Ideal for Aircraft to Deliver the Benefits of Next-Gen Satellite Networks
East Aurora, NY | April 3, 2017– Astronics Corporation (NASDAQ: ATRO), through its wholly-owned subsidiary Astronics AeroSat, announced its latest aircraft antenna system, the FliteStream® F-310. Designed to provide the high performance needed for new spot beam satellite technology, the FliteStream F-310 delivers the highest bandwidth and fastest in-flight internet connectivity speeds in its class.
“The continued evolution of our fuselage mount
antennas for commercial and VVIP aircraft illustrates Astronics’ continued focus on providing industry- leading airborne connectivity solutions,” said Matthew Harrah, President of Astronics AeroSat. “The new F-310 provides the high performance needed for next generation Ku-band High-Throughput Satellites (HTS), which utilize faster spot beam technology in place of traditional wide beams. We look forward to working with aircraft OEMs and service partners to install and offer the fastest user experience for in- flight internet connectivity.“
The new FliteStream F-310 provides Ku-band HTS connectivity with new technology that minimizes service interruptions when switching from spot beam to spot beam in flight. Designed to replace the current FliteStream F-210 product, the F-310 uses existing mounting provisions to eliminate any impact to aircraft installation designs and provides an easy path for OEMs to upgrade to the latest Ku-Band HTS networks.
AeroSat’s FliteStream solutions are the only products available with patented “Rexolite® Lens” technology, which enables AeroSat to create the most efficient, reliable, and highest-performing connectivity systems available. Key features of the new FliteStream F-310 solution include:
- Seamless connectivity for passengers to browse the internet, send and receive emails, make calls using Voice-Over-IP (VoIP), access virtual private network (VPN) services, conduct video conferences, and enjoy favorite work or entertainment applications
- Highest performing Ku-band SATCOM antenna system, critical for maintaining low angle satellite coverage while flying at higher latitudes
- A three-piece LRU system: antenna, antenna controller, and high power transceiver
- Compliance with RTCA/DO-160 & RTCA/DO-178
- Small size and light weight
FliteStream Tail Mount Connectivity System First to Provide Both Live Television and High-speed Internet on Business Jets from a Single Antenna
New Orleans, LA | March 13, 2017– Satcom Direct (SD) today announced its agreement with Astronics AeroSat to sell the FliteStream T-Series tail mount connectivity system through SD’s global dealer network. The first of its kind in the business aviation market, the FlightStream T-Series solution employs the Panasonic Avionics global communications network to enable business jet passengers to watch live television and use the internet simultaneously through a single antenna.
“At SD, we have a holistic approach to the connected aircraft through innovation and targeted investment,” said Jim Jensen, Satcom Direct chairman. “Our industry-leading products and services address the increasingly complex needs of flight departments, aircraft owners and operators to keep the aircraft and passengers synched with ground operations and business commitments over secure networks. This agreement with Astronics AeroSat will help us advance our vision of delivering the most innovative and effective solutions to the business aviation marketplace.”
“Astronics AeroSat’s best-in-class hardware, partnered with our SD dealer network, allows for a rapid market deployment on a global scale,” says Chris Moore, chief commercial officer at SD. “By incorporating the Astronics AeroSat solution with our existing robust suite of products and services, we are creating a one-stop shop for hardware and value-added services. SD is in the unique position of offering genuinely complete solutions for the whole business jet ecosystem.”
“Early recognition of the pent-up demand for comprehensive inflight connectivity was the impetus behind our FliteStream T-Series tail mount solution,” notes Matt Harrah, Astronics AeroSat President. “Our collaboration with Satcom Direct expands our channel for providing FliteStream solutions to the global business aviation market. We’re pleased to enter into agreement with SD, a global leader in delivering smart connectivity solutions for business jets.”
Telefonix PDT:
Telefonix PDT(TM) announced that they now have an STC for Boeing 737NG – 700, 800 & 900 aircraft types for both the CabinPinnacle(TM) server and CabinACe(TM)wireless access point. The STC was just awarded prior to APEX in Singapore, and we understand that Kaiser Charter was the first installation completed in October. This STC represents the first phase of certifications and it is our understanding that phase 2 will include the CabinEdge(TM) content loader. The content loader works while the aircraft is in service and data is trickled, loading into shadow memory, and eventually ending up in the operational memory as the update is installed. Telefonix PDT is also working on garnering a similar STC for the A320 aircraft family. The STC/PMA was strategically planned to grow the company’s customer base for the 737 in the Asia region. The airlines have the data rights to use the system, with the hardware being sold, not leased. Lest you forget, Telefonix(TM) has had a long standing relationship with production in China; and, in 2017, the company has plans to establish a repair station in China, in addition to their current repair station in Waukegan, Illinois. One point that was stressed in our interview at APEX was that Telefonix PDT is not just an equipment provider, but a design and engineering services provider as well. (Editor’s Note: IFExpress has watched Telefonix PDT grow over the past 20+ years and we feel that they have developed excellent, low-cost IFE system components and the China relationships, as well as their involvement with many hardware manufactures within the industry, is proof of this. You should watch this company in the coming year – we think they are going to grow!)
Industry News:
- Panasonic
Have you heard about the Panasonic Blog? We asked Panasonic how it came about and here is what a spokesperson said: “Matthias Walter and Estel Carbo worked very hard on this and have a plan that we thinks helps give more insights into the IFEC landscape.” Matthias Walther, Senior Manager of Integrated Marketing at Panasonic Avionics said, “Marketing these days has many facets. Hard sales has its place in marketing too but in an industry as relationship-driven as ours it’s essential to engage in a dialog that is more about education than promotion, more about solutions than product and more about value than price. Of course we will occasionally talk about us and what we bring to the table but only if we and what we write adds value to the daily lives of our customers will our blog be successful.” Noted Panasonic: “One of the business principles of Panasonic’s founder Knosuke Matsushita describes customer focus always trumping sales concerns. In that spirit our blog intends to drive knowledge, our relationship with our customers and the quality of decision making in one direction, UP.” Check it out here.
Panasonic Weather Solution
Panasonic Avionics Corporation and Safety Line unveiled a strategic partnership that will enable airlines to benefit from significant fuel savings. Panasonic Weather Solutions (PWS) provides Safety Line with enhanced global weather forecast through real-time weather data collection from its TAMDAR sensors and FlightLink Iridium system. TAMDAR data provides observations of wind, temperature, and moisture every five seconds as TAMDAR-equipped aircraft descend and ascend at nearly 300 airports across North America. It also collects about 3,500 profiles each day from several hundred additional airports located in East Asia, the Pacific, and Europe. This data is used by Panasonic’s Forecasting Center of Excellence (FCoE), which develops detailed station-based weather forecasting, as well as enhanced weather forecasting. The process is fully automated from the weather live feed to flight plan analysis and climb schedule issuance to the pilot. Airlines can reduce fuel consumption by up to 10 percent during ascent thanks to OptiClimb’s unique patented solution, which uses a combination of machine learning performance models for each individual aircraft, and the computing of optimized climb profiles issued ahead of each flight.
Also check this link The Connected Aircraft (Part I) – Curating the Internet of Me – UP – Panasonic Avionics Blog if you want to know a bit more about the connected aircraft.
- Inmarsat
We should note that Hawaiian Airlines has experienced the benefits of SwiftBroadband-Safety delivered through Cobham advanced AVIATOR avionics and has now chosen to expand its commitment to high speed broadband in the flight deck with its A321neo. But to see the features that are provided, you must check out this Inmarsat Global Aeronautical Distress and Safety System feature download – this is the future of aviation safety and you need to check it out!
- Boeing
The FAA issued a new rule that forces Boeing 787 operators to periodically shut down and restart airplane power that reboots onboard computers to overcome a glitch that shuts down flight control computers during flight! Finding and fixing this “inconsistency” will be very, very interesting. Stay Tuned!
- Satellite 2017
Be a part of the world’s largest gathering of the international satellite community. Taking place in Washington, D.C. March 6-9, 2017 the SATELLITE 2017 Conference and Exhibition don’t miss this opportunity to hear from executive speakers from commercial airlines, the U.S. Federal Aviation Administration and the U.S. Air Force!
- THE ‘Donald’
Donald Trump says the new Air Force One contract should be cancelled! Perhaps Airbus will make a better offer? Then Boeing put this news release out – Boeing Statement on Air Force One – Dec 6, 2016 Or, you might want to read the following story from Gizmodo – beware there are x-rated words, so watch out!
- Other
If you have been wondering where IoT and cloud computing are going, one answer is ‘physically portable data’. This is going to be one of the markets of the next generation cloud because of security and access as large (and now medium) data portability and cloud interaction become involved. We suspect that the airlines will see value in this if hacking gets any worse Amazon Cloud Gets A Bit More Hybrid This just may be one futures of the medium and big data cloud storage and security.
In-Flight hook-ups now supported with AirDates “This is achieved using Multipeer WiFi between smartphones, eliminating the need to rely upon the Plane’s WiFi network or other connection.” Check it out here – but you might need the Trusted Contacts app as well.
Quick Study: Millennials
While in Singapore, we heard one word over and over – millennial- so we thought after the show we would do the research on who they are and why they are so important to some industries. While this quick bit of data is just a speed read, we think the answers are telling and important to IFEC, especially C (Communications).
First what is a millennial? It is a person ‘reaching young adulthood around the year 2000’ the dictionary said. Noted Goldman Sachs: “The Millennial generation is the largest in US history and as they reach their prime working and spending years, their impact on the economy is going to be huge. Millennials have come of age during a time of technological change, globalization and economic disruption. That’s given them a different set of behaviors and experiences than their parents.They have been slower to marry and move out on their own, and have shown different attitudes to ownership that have helped spawn what’s being called a ‘sharing economy.’ They’re also the first generation of digital natives, and their affinity for technology helps shape how they shop. They are used to instant access to price comparisons, product information and peer reviews.” Further, a company called iGR interviewed and surveyed millennials to get their views on communication and technology and here is what they said: “As the largest and highly communication-tech-savy generation; they are at the epicenter of our curiosity to drive decision-making for the next wave of innovation in infrastructure. Take note! The most successful service providers over the next 5-10 years will be those who best understand the emerging generations communication behavior, accurately anticipate core service wants and needs, proactively adapt and adjust business strategies, and finally, provide the most relevant solutions and services.” That about says it all and explains why the word ‘millennial’ was so popular in Singapore, especially with those who dealt with communications, connectivity, and cost!
France | November 26, 2016– Airbus is evaluating a new standard high-bandwidth architecture that will provide faster and more wide-reaching connectivity services on-board its modern, market-leading jetliners.
Using the in-house A330 testbed aircraft this autumn, Airbus became the first in the industry to flight demonstrate such a high-bandwidth connectivity platform – which will enable faster internet, mobile telephone services and support applications for passengers and airlines via high-throughput satellites.
Applying high-bandwidth connectivity is an important part of the company’s focus on providing a superior on-board experience – and soon will allow airline customers to choose from the range of new high-throughput satellite technologies such as Ka-band and Ku-band for continuous worldwide connectivity.
Constant innovation to improve the passenger experience
“Our goal is to extend our connectivity portfolio in new production aircraft and as retrofit,” explained Bruno Galzin, Head of Airbus’ Connectivity Programme and Upgrade Services. “Our initial testing in high-bandwidth connectivity is a new step to improve the passenger and crew experience. We already are working on new solutions in line with the latest, fast-evolving technologies so anyone can be connected on-board just like at home.”
In-flight connectivity is becoming increasingly important for passengers, who now expect to always be connected – using their own electronic devices to access the internet, exchange with those on the ground and enjoy social media.
Airlines also are demanding the need for connectivity solutions to enhance their operational communications, such as with digital cabin logbooks, telemedicine or for credit card authentication, as well as to generate ancillary cabin revenues.
Cabin connectivity for the future
With the start of testing successfully underway this autumn, Airbus is expected to be the first aircraft manufacturer to offer this standard architecture on its commercial airliners – with service entry for this solution planned for the third quarter of 2017.
Airbus’ high-bandwidth connectivity architecture will be available from multiple suppliers for applications on its A320, A330 and A380 jetliners, which supplements the A350 XWB – a “digital native” that entered service with high-bandwidth connectivity capability.
“The number of connected commercial aircraft is expected to grow from 5,000 to a volume of 16,600 over the 2015-2025 period, accounting for 62 percent of the global commercial fleet,” explained Galzin. “The innovative solutions we are currently developing will help passengers and airlines benefit from a new generation of high-throughput satellite technologies in the Ka-band and Ku-band frequencies.”
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!
- Expands MultiChoice’s Leading Direct-to-Home Services in Sub-Saharan Africa
Luxembourg | August 24, 2016– Intelsat S.A. (NYSE: I), operator of the world’s first Globalized Network, powered by its leading satellite backbone, today announced the successful launch of the Intelsat 36 satellite. Intelsat 36 was launched from French Guiana aboard an Ariane 5 launch vehicle. Liftoff occurred at 6:16 p.m. EDT. The satellite separated from the rocket’s lower stage at 6:57 p.m. EDT, and the Intelsat launch team has confirmed signal acquisition.
Built for Intelsat by Space Systems/Loral (SSL), Intelsat 36 is designed to enhance Intelsat’s media neighborhoods serving Africa and the Indian Ocean regions. The Ku-band payload was built to support MultiChoice, the leading direct-to-home platform in South Africa. The C-band payload provides in-orbit resilience for Intelsat’s leading video content distribution neighborhood at 68.5° E. Intelsat 36 will be collocated with Intelsat 20.
“Intelsat 36 is a testament to our dedication to working closely with our customers in Africa to support critical growing infrastructure needs in the region,” said Stephen Spengler, Chief Executive Officer, Intelsat.
“Having consistent and affordable access to informative and entertaining content is vital to a community and its citizens. Intelsat 36 will enable MultiChoice to extend high definition channels throughout the region via one of Africa’s premier video neighborhoods. We are proud to once again partner with MultiChoice as they continue to deliver high quality and compelling educational and entertainment services to their customers throughout sub-Saharan Africa.”
Intelsat 36 is the 58th Intelsat satellite launched by Arianespace.
- Intelsat EpicNG’s fast and efficient broadband connectivity now available across 5 continents, serving enterprise, wireless telecommunications, mobility, government and Internet of Things applications
- Expands Intelsat EpicNG coverage for aeronautical and maritime mobility, from the Caribbean and North Atlantic across Europe, Asia and Africa
Luxembourg | August 24, 2016– Intelsat S.A. (NYSE: I), operator of the world’s first Globalized Network, powered by its leading satellite backbone, today announced that Intelsat 33e, the second of seven planned Intelsat EpicNG high throughput satellites, was launched successfully from French Guiana aboard an Ariane 5 launch vehicle. Liftoff occurred at 6:16 p.m. EDT. The Intelsat 33e satellite separated from the rocket’s upper stage at 6:44 p.m. EDT, and signal acquisition has been confirmed.
Intelsat 33e, manufactured by Boeing, will bring high throughput capacity in both C- and Ku-band to the Africa, Europe, Middle East and Asia regions from 60°E. The satellite will join Intelsat 29e, the first Intelsat EpicNG satellite, which was launched in January 2016 over the Americas and North Atlantic Ocean region, to form a high throughput overlay to Intelsat’s fleet of enterprise-grade, wide beam satellites.
Intelsat 33e is equipped with the sector’s most advanced digital payload on a commercial spacecraft and combines wide beams and spot beams with frequency reuse technology. The digital payload provides customers with unprecedented security and flexibility, enabling seamless access and the ability to shift capacity to match their usage needs in a particular region or timeframe. Intelsat EpicNG is optimized to provide satellite connectivity for applications including the Internet of Things, enterprise, wireless infrastructure, aeronautical and maritime mobility and government, which are expected to provide a combined $3.3 billion incremental industry-wide revenue opportunity between 2015-2021.
“Intelsat 33e marks another significant milestone as we continue our ‘epic’ journey toward meeting our customers’ needs for higher performance, improved economics and simplified access to satellite solutions,” stated Stephen Spengler, Chief Executive Officer, Intelsat. “Our first high throughput satellite, Intelsat 29e, is already in service and exceeding our customers’ expectations in the Americas. With Intelsat 33e, customers operating in EMEA and the Asia Pacific regions will now be able to leverage Intelsat EpicNG’s differentiated capabilities and greater efficiencies to grow their businesses and deliver enhanced value to their customers.”
Mr. Spengler continued, “Intelsat 33e and the Intelsat EpicNG architecture are fully backwards compatible and interoperable with Intelsat’s existing satellite fleet and terrestrial infrastructure. This allows customers to cost efficiently use currently deployed network hardware so that they can have immediate access to high performance connectivity. Intelsat 33e also brings us one step closer to providing the first global, fully interoperable wide beam and high throughput Ku-band broadband service. We remain on schedule to launch the remaining five Intelsat EpicNG satellites. The 2018 launch of our Horizons 3e satellite will complete our global coverage, adding the Pacific Ocean region.”
The Intelsat 33e payload will deliver carrier-grade services to fixed and mobile network operators, and broadband for applications such as enterprise, aeronautical and maritime mobility, and government. Companies such as EMC, Gogo, Harris CapRock, KVH, Marlink, Panasonic Avionics, Romantis, Supernet, and Television and Radio Broadcasting Network of Armenia (TRBNA), will be among the first to deploy services on the platform.
Intelsat 33e is the 57th Intelsat satellite launched by Arianespace. It will replace Intelsat 904, which will be redeployed.
The world of in-flight connectivity and entertainment is undergoing a bit of a growth phase as service providers and IFEC vendors improve and consolidate their focus on more entertainment and more planes, and in some cases, more markets. Last year the acquisition of ITC Global (maritime, mining, and energy markets) by Panasonic was the lead-in to today’s recent announcement of a purchase. Now, GEE, an airline content and satcom hardware service provider (over 200 airline customers), announced the acquisition of a $550-million, broad-based content and service provider, Emerging Markets Communication (EMC). EMC is primarily a maritime service provider that has high penetration in that market as well as Cruise ships (158,000 cabins), yachts (7,500 boats), commercial shipping/O&G (130,000 ships), UN & NGO, as well as, telco solutions. We note here that the consolidation of these mobility markets, and the desire to operate across wider and more diverse service segments, shows a collaboration trend in the satcom connectivity market and it underlies the increase in demand for connectivity and entertainment services by people, places and businesses everywhere. As they note, the deal “leverages complimentary products, technologies, and service offerings across air, sea, and land verticals to drive growth!”
Of course, we are really talking about three items here – Content, Connectivity and Mission Critical Service solutions. From a growth point of view, by 2021 the market will be worth some $5.4 B and one source noted to us that “…the key players in the market follow the strategy of acquisition and mergers and are focused towards entering into strategic partnerships with regional players in order to strengthen their position in the market.” It makes sense.
Specifically, in our story GEE is in the middle of this growth segment and is expanding their market now with a maritime focus in the acquisition of EMC, who has a strong market position there. From a global point of view, the acquisition of EMC provides GEE with complete worldwide connectivity that is supported by GEE’s existing Ku coverage as well as that of EMC. In addition, there is some C-Band coverage by EMC in the deal, resulting in an impressive chart.
The folks at GEE have acquired nine companies since its formation some three years ago. This acquisition is by far their biggest to date and will allow GEE to gain a foothold in the maritime market where growth will no doubt be exhibited.
IFExpress asked a few questions of Kevin Trosian, SVP Development & IR, and he told IFExpress:
1. Since you have purchased a “connected” company, does GEE see selling their content to the 8 EMC existing markets (Yachts, Energy, Cruise & Ferries, commercial shipping, mobile networks, government, UN, NGO’s and Global Enterprise)?
Yes, we believe there is a large opportunity for live and streaming content in the maritime and mobility verticals, and GEE’s digital media team has already worked with EMC for many years to jointly provide content to the maritime market. We see this a great opportunity for us to use our strong relationships with studios around the world to expand distribution into these markets.
GEE had previously provided TV and VOD products to EMC, including a number of live television channels, so this is not a new market for us. We have already obtained maritime rights from certain studios and/or distributors and are in the process of acquiring more. Ultimately we believe our combined knowledge of the market and relationships will enable us to leverage our strength in content for the maritime market for further growth of our media platform.
2. Can you tell us how big the existing market is?
The maritime and land-based connectivity and media markets in which we now compete are a multi-billion dollar opportunity. There is an available market of approximately 158,000 cruise cabins, 7,500 yachts and 130,000 ships.
3. Today, what countries have the 20 or so ground stations mentioned by EMC? Does EMC own them?
For this question, please see our Worldwide Infrastructure chart. In addition, through the acquisition we now have operations at 3 teleport facilities, including New Jersey, Hawaii and Germany.
4. This purchase looks like a prefect fit for GEE to grow and provide entertainment to the existing EMC service sections, can someone at GEE comment on that issue?
Please see 1 above.
5. Obviously the market is one reason GEE bought them; however, is there more to the story than that?
Yes, we believe there is a significant number of synergies that can be realized with the integration of the two companies. Through the integration, the company expects to realize synergies of $15 million in 2017, growing to $40 million in 2018 and thereafter. Synergies will primarily result 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.
6. From a company integration point of view, will EMC function pretty much as they do today? Will their information portfolio be enlarged by GEE’s entertainment content?
Yes, EMC will function in a fairly similar manner, but we will be integrating the companies into a single platform. The EMC team built a great foundation in an adjacent market to GEE’s traditional aviation market. We’re looking to leverage what they have accomplished and continue to build on that, such as by providing more media to the maritime market.
7. We gather that GEE has been looking for more markets for their content, why did they not just provide the content to companies like EMC and not go the distance to purchase one? What is the driving reason here?
There were multiple reasons for the acquisition, and the ability to sell content was only one of them. We see significant opportunities within the connectivity businesses of both companies, including the ability to improve satellite capacity utilization. Further, by expanding into new markets, we believe our scale will improve efficiencies and the overall customer experience.
8. Will the EMC management and operations function pretty much as they do today or will there be management changes and new ways of doing business?
We’ve announced the new verticals (see below from the Press Release) and the Business Unit leaders.
- 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.
9. What does GEE bring to the party besides entertainment content? Will their airline solutions effect EMC’s products/solutions differently or much the same? If differently, how so?
GEE delivers worldwide connectivity to the aviation market and is the largest content and media provider for the broader mobility market. GEE brings 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. We will also be bringing some of EMC’s proprietary and patented technologies, such as Speednet, to the aviation market.
- Combined, we bring:
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 with 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.
10. How big is EMC and is there a new structure to come?
We haven’t discussed management structure beyond the senior leaders, which can be found in the press release (attached). EMC had approximately 450 employees located worldwide.
Note: Finally, IFExpress talked with many people about the acquisition and there was a great difference of opinion on on the subject and other issues as well. All we can say is keep your eye on a few factors that may (or may not) affect the future of GEE: Southwest Airlines, Ku/Ka Band airline preferences, Universal lawsuit results, marine market entertainment take-up, traveler personal device and entertainment demand. Stay Tuned.
GEE EMC Transaction Presentation
Lastly, we would like to thank Jenelle Benoit of GEE for all the assistance bringing this story to press!
OTHER NEWS:
Rockwell Collins today announced that China Eastern Airlines selected its Iridium® SATCOM aftermarket solution for its fleet of more than 100 Boeing 737 aircraft. Installations are currently in progress. The voice and data communications solution, installed via a Boeing service bulletin for Next-Generation Boeing 737s, will enable reliable long-range global voice communications, flight tracking and Aircraft Communications Addressing and Reporting System (ACARS). The solution is also capable of enabling Future Airspace Navigation System (FANS) for airlines that need it for their operations.
- First Multi Spot Beam, Ku-Band High Throughput Satellite to Serve Europe, Middle East, Africa and Asia Pacific
Luxembourg and Paris | July 22, 2016– Intelsat S.A. (NYSE: I), operator of the world’s first Globalized Network, powered by its leading satellite backbone, announced today that Intelsat 33e, the second of the Intelsat EpicNG series of high throughput satellites (“HTS”), arrived at the Guiana Space Center in Kourou, French Guiana, where it will undergo final preparations before its scheduled launch on an Ariane 5 rocket on the 24th of August, 2016.
Manufactured by Boeing and equipped with the most advanced digital payload on a commercial spacecraft, Intelsat 33e will extend Intelsat’s high throughput capacity in both C- and Ku-band from the Americas to include Europe, the Middle East, Africa, Asia Pacific, the Mediterranean and Indian Ocean regions.
Intelsat EpicNG features an exceptionally flexible HTS payload design that is backward compatible with already deployed user networks globally. The higher performance, better economics and simplified access of the Intelsat EpicNG design are built to address an expected $3.2 billion incremental revenue opportunity related to new demand for satellite-based infrastructure in the enterprise, wireless infrastructure, aeronautical and maritime mobility, government and Internet of Things sectors by the year 2021.
The amount of global data traffic is expected to surge at a compound annual growth rate of 53 percent from 2015 through year-end 2020. With increasing broadband requirements and a growing number of smartphone users, the flexible and open architecture of Intelsat 29e, Intelsat 33e and future Intelsat EpicNG satellites will enable fixed and mobile network operators to cost-effectively extend their networks and meet the surges in broadband demand across the continents.
Select customers have already committed to take advantage of Intelsat 33e, some of which include Pakistani Internet service provider SuperNet Limited, African telecommunications providers such as Telkom South Africa, Orange, IP Planet, Vodacom, Dijoubti Telecom, Safarifone and Africell RDC SPRL.; Russian network service providers Romantis and RuSat LLC; and media customers including TV & Radio Broadcasting (formerly Television and Radio Broadcasting of Armenia), and MultiChoice of South Africa.
Intelsat 33e will also deliver enterprise-grade, broadband services to aeronautical and maritime mobility service providers and users. The satellite combines wide and high performing spot beams facilitating combined live television and broadband applications within the same network. As previously announced, prestigious maritime mobility customers such as EMC, Harris CapRock and Marlink, and aero mobility customers such as Gogo and Panasonic Avionics have committed to the Intelsat EpicNG fleet for mobility and fixed and mobile enterprise applications.
Intelsat 33e is currently scheduled for launch on 24 August 2016 during a window that is currently scheduled to open at 5:55 pm EDT and closes at 6:40 pm EDT. Following a successful launch, Intelsat 33e will be placed at the 60°E orbital location, where it will undergo in-orbit testing prior to its expected in-service date at the end of 2016.
Lake Forest, CA | July 12, 2016– Panasonic Avionics (Panasonic) and its partner China Telecom Satellite (CTS), today announced a one-year extension of their Ku-band inflight connectivity trial. With this milestone, all approved Chinese and international airlines can now select Panasonic’s Global Communications Services and enjoy connectivity services worldwide.
Per terms of the license, over 20 foreign airlines with more than 1,000 aircraft are expected to begin operating connected flights over Chinese airspace, with more in process. In addition, Panasonic’s Chinese airline customers, including China Eastern Airlines, Xiamen Air, Hainan Airlines and China Southern Airlines have begun preparations to offer connectivity services across their global route structure.
David Bruner, Vice President, Global Communications Services, Panasonic Avionics, said: “We have worked closely with China Telecom Satellite for the past several years to support connected flights over China with our global broadband service.
“Today’s announcement is the next step in this special partnership, and we look forward to working with China Telecom Satellite over the months ahead to roll this service out across our approved international customer base.”
The announcement follows recent news that the leading Chinese carrier, China Eastern Airlines, in partnership with CTS, was the first to offer Wi-Fi on domestic flights. China Eastern Airlines installed Panasonic’s award-winning eXConnect inflight connectivity system on its newest Boeing 777-300ER aircraft.
The service was initially offered by 12 foreign airlines with just over 200 aircraft offering inflight connectivity over this key region. There were also three Chinese-registered airlines and 30 aircraft offering connected flights in and out of China.
Lake Forest, CA and Finland | July 11, 2016– Last year Finnair announced it would launch a wireless network connection for the majority of its wide and narrow-body aircraft.
The first wireless services were taken into use on Finnair aircraft at the end of last year onboard the new Airbus A350 XWB aircraft. Finnair will begin the installation of Wi-Fi on its long-haul Airbus A330 aircraft in October this year, and the installation is estimated to be ready in May 2017.
“In May 2017, our customers will be able to enjoy wireless network connection onboard all of our long-haul fleet. In addition to Internet access, we will have a broad offering of inflight entertainment, shopping opportunities, real-time news content and other additional services in Finnair’s free of charge Nordic Sky portal,” says Piia Karhu, SVP, Customer Experience Development.
Panasonic Avionics Corporation (Panasonic), which already supplies the connection for the A350 fleet, has been chosen as the supplier of the wireless connection on Airbus A330 aircraft. The connection will be achieved by Ku band satellite technology, which guarantees a working global network connection during a flight.
Wireless Internet access is free to Business class passengers, Finnair Plus Gold and Platinum customers, and oneworld Sapphire and Emerald level customers. Economy class passengers can purchase Internet access at an hourly rate (5 euro/hour) or for the duration of the flight (15 euro).