LATITUDE AERO
Latitude Aero, a Greensboro-based aerospace company, is growing and expanding into a new location, doubling size and capacity of production. The new facility expects to become fully operational, adding EASA certification, mid-December 2020.
The new 100,000 sf (9,290 sm) facility is located in the same industrial park as the company’s current headquarters at Air Park North, adjacent to PTI Airport. The increased storage and manufacturing space is climate controlled, and will make room for some additions, including a machine shop for OEM fabrication, and a sewing studio for custom seat refurbishment, all under one roof.
President and CEO Kelvin Boyette expressed enthusiasm about how the growth will benefit the Triad and beyond. “Our new headquarters will create fresh revenue and labor here in the area. By operating a facility roughly double the size of our current operation, we’re now able to take on larger projects, run production simultaneously, and provide new capabilities to our clients.”
Along with the new facility and new capabilities come new jobs. Latitude Aero will be looking to hire 15-20 positions in the next 120 days. Positions will include sewing specialists, CNC operators, machinists, and additional seating technicians to handle the increased volume.
Latitude Aero is an aircraft seating overhaul provider that specializes in the integration of inflight entertainment (IFE) and in-seat power (ISPS), to provide economically viable solutions for cabin upgrades of any scope. The new shop in the Seattle Region will service the OEM customer base on the West Coast and will allow the company to provide maintenance and repair to all of North America.
THALES
Thales introduces Ready to Fly – a portfolio of solutions for a safer & healthier travel journey.
- After introducing its strategy for a low carbon future enabling a 10% reduction of aircraft CO2 emissions by 2023, Thales is supporting its global airline customers with advanced technologies to restore confidence in air travel by enhancing the health safety and wellness of passengers.
- These affordable solutions can be quickly deployed to meet the immediate needs of airlines on new and in-service IFE systems.
The Ready to Fly portfolio of solutions offered by Thales are designed to help our airline customers restore passenger confidence in air travel during the crisis and in a post pandemic world. With Ready to Fly, Thales InFlyt Experience is focused on expediting the industry’s digital transformation through passenger-centric solutions and integrated products as well as services that increase crew efficiency. Ready to Fly solutions enable cabin innovations that reduce touch and mitigate passenger congestion.
The Ready to Fly “touchless” solutions allow passengers to safely control the inflight entertainment system with their personal phone or tablet for a full IFE experience, including digital versions of onboard paper menus, magazines and important safety and health information. To reduce physical interactions with the crew, while maximizing services, the Thales Travel Assistant solution will enable passengers to request and receive automated information on the seatback monitor. The crew will also have the ability to gather information, receive notifications and control the cabin from their own secure personal phone or tablet.
Looking toward the future, Thales is leveraging its robust network of partners to develop cabin automation solutions that decrease congestion, facilitate aircraft disembarking, and manage passenger flow by using synthetic data.
Thales is building a future we can all trust by reimagining the way people travel using advanced and cyber-secured technologies that create a safer, and more connected, digital ecosystem.
“Most important to Thales is that we are here to support our airline customers and work with them to tackle their toughest challenges during these unprecedented times. Our solutions are highly automated, reduce the need of interaction, and increase the efficiency of airline ground and air personnel. Ready to Fly brings multiple innovations that enhance wellness in the cabin while providing the best passenger experience.” Neil James, Vice President, Sales – Thales InFlyt Experience.
IATA
Deep Aviation Losses Continue Till 2021 – The International Air Transport Association (IATA) announced a revised outlook for airline industry performance in 2020 and 2021. Deep industry losses will continue into 2021, even though performance is expected to improve over the period of the forecast.
- A net loss of $118.5 billion is expected for 2020 (deeper than the $84.3 billion forecast in June).
- A net loss of $38.7 billion is expected in 2021 (deeper than the $15.8 billion forecast in June).
Performance factors in 2021 will show improvements on 2020; and the second half of 2021 is expected to see improvements after a difficult 2021 first half. Aggressive cost-cutting is expected to combine with increased demand during 2021 (due to the re-opening of borders with testing and/or the widespread availability of a vaccine) to see the industry turn cash-positive in the fourth quarter of 2021 which is earlier than previously forecast.
“This crisis is devastating and unrelenting. Airlines have cut costs by 45.8%, but revenues are down 60.9%. The result is that airlines will lose $66 for every passenger carried this year for a total net loss of $118.5 billion. This loss will be reduced sharply by $80 billion in 2021. But the prospect of losing $38.7 billion next year is nothing to celebrate. We need to get borders safely re-opened without quarantine so that people will fly again. And with airlines expected to bleed cash at least until the fourth quarter of 2021 there is no time to lose,” said Alexandre de Juniac, IATA’s Director General and CEO.
GOGO
Gogo Inc. announced it has completed the sale of its Commercial Aviation (CA) business to a subsidiary of Intelsat S.A. for $400 million in cash. Gogo will continue as a publicly traded company, now singularly focused on leveraging its ATG network and proprietary spectrum to serve the business aviation market. The proceeds from the transaction significantly strengthen Gogo’s financial position by reducing its net debt position and enhancing the company’s ability to invest in growth opportunities, including Gogo 5G.
“The completion of the sale of our CA business to Intelsat marks the beginning of a new chapter for Gogo; we are a leader in business aviation and now turn our singular focus toward serving that attractive market,” said Oakleigh Thorne, President and CEO of Gogo. “Our business aviation division has proven resilient in the face of the COVID-19 pandemic, as the number of business aircraft online today has nearly returned to January levels.”
“Looking forward, we see great opportunity to create value for our customers, employees and shareholders,” Thorne said. “And on behalf of all of us at Gogo, I want to extend my sincere thanks to the talented CA team that joins Intelsat today. The opportunities that await them are a testament to their unwavering dedication and commitment to Gogo and their aviation partners.”
Immediately following closing, and after Gogo’s $53 million semi-annual interest payments in November, Gogo had approximately $460 million in cash-on-hand and net debt of approximately $770 million. As previously disclosed, Gogo intends to undertake a comprehensive refinancing prior to the first call date of its senior secured notes in May 2021 to align its balance sheet with its new business structure, reduce its interest expense, and facilitate the repayment at maturity of Gogo’s convertible notes, of which $238 million aggregate principal amount are currently outstanding.
Gogo expects to provide an update on its strategic and long-term financial planning process on its fourth quarter earnings call.
OTHER NEWS
- The second-largest radio telescope in the world is shutting down – this is quite sad since a lot of space/planet knowledge was gained from it as it sat in Puerto Rico for 57 years!
- This is kind of aviation interesting – Emirates’ Big Problem (not what you think) – YouTube
This issue of IFExpress always always raises a few feathers so let’s get started with some IFExpress predictions, then we will present the inputs from folks who were willing to provide their names, and finally, those who wish to remain anonymous will contribute as well. We should probably note that not all predictions landed in the IFEC category and thus it looks to be an interesting year – and things just might change anywhere!
IFExpress 2017 Predictions
- Narrower aircraft seats are coming in 2017, especially in newer low class offerings where only certain sized carry-on baggage will be permitted – smaller and surely less comfortable as well. We already know United Airlines has a new low cost Basic Economy package that will be copied by others. The rub will be what limitations will be placed on passengers who do not have the airline reward travel card! Hey, many folks can travel short flights and put up with almost anything. It is all a function of what they have to take with them. And yes, it will be in the back of the plane.
- More colored cabin environments will be here in 2017, but also as a result of new LED lighting in the plane – probably more blue! [We note: A recent Boeing study concluded that passengers will perceive that the airplane is cleaner, more comfortable, newer, and with better air and more room, all with the correct lighting. Even one German university test proved while flying with light that contains increased red, (not blue) light components, is more calming and cause less passenger stress.]
- We cannot say this enough but Data will be the big deal in 2017, whether it is an airline examining their routes with a goal for less fuel, to using social media to communicate directly with passengers or even potential travelers, to connection with the aircraft for more inflight system information for operation or security. OK, this is not much of a surprise!
- Some folks predict that light will be used to deliver connectivity. However, with all the issues involved with outside solar, safety lighting, and other sources of interference (Hasn’t this been tried earlier?), we think otherwise. Anyway, Bluetooth as a connectivity radio frequency has slipped under the radar and since most connectivity devices have the capability and the corporate jet world has adopted it, we expect an inflight commercial airline installation this year. With Bluetooth 5.0 alive there may be even more interest in a Bt connectivity solution. Hey, 4X range, 2X speed, and 8X capacity, and no power increase, what’s not to like?”
- Watch for an airline to test ground-based, high bandwidth 2.4 GHz, directed connectivity service like those proposed for SmartSky and Gogo. This is more of a 2017 sure thing than a prediction.
- We fear aviation manufacturing layoffs, let’s see what happens there but don’t look for that job just yet. The layoff scenario has already started at Boeing, who is downsizing to the tune of some 8,000 employees, and could reach 10% there. Airbus is next after production continues for a bit.
- Maintenance of aircraft will see more outsourcing, new technology products like AI and voice technology used in maintenance products, and more consolidation in the MRO world (Maintenance Repair Overhaul).
- While we hope it does not happen, but be very concerned that a hacker doesn’t get aboard a plane this year, transmit a fake Wi-Fi service and install a lot of ransomware (like doxware) on folks trying to get Wi-Fi service. In 2017 it is a possibility and be sure you know how to get online when onboard!
- What’s next for future SATCOM? How about Q/V bands: 33 – 75 GHz? If the FCC auctions get it together, perhaps even 14 GHz has a chance?
- We shy away from talking about aircraft control hacking, but have you thought about hackers using a DDoS attach or ransomware on an airline reservation system – might happen?
- The Boeing 787 will finally get the proper acclaim that it is the only commercial jet airplane where cabin/crew air is taken directly from the atmosphere with electrically powered compressors and not from engine ‘bleed air’! The health guru’s will help.
- Cybercrime damages will continue to grow (costing the world $6 trillion annually by 2021), up from $3 trillion last year; ransomware will be the fastest growing threat in terms of new attacks and costs. Global spending on cybersecurity products and services will exceed $1 trillion cumulatively over the next 5 years from 2017 to 2021. Easy procurement of cheap IoT devices or Wi-Fi enabled products introduces a serious level of risk — of which many people are unaware. As one expert noted: “Transportation systems may be immobilized.” Or, as another one said: “My second prediction for 2017 is that cyber personnel will become a rare commodity like we have never seen before. Organizations have received the message, and are staffing and investing, but that demand generates a supply that is not available.” Don’t you think there will be plenty of openings in aviation security in 2017? We do!
- Lastly, as strange as it seems, “a self-driving” aircraft concept for passenger planes will be talked about this year – perhaps just for parcel delivery but projects like ALIAS are just the beginning.
Named 2017 Reader Predictions
Here are our reader IFEC predictions and we start of with those from APEX CEO, Joe Leader:
- Connectivity announcements and deployment will hit a new high for the industry.
- In-flight entertainment continues its expansion with more global IFE system installations and upgrades.
- Airline passenger experience will become less siloed inside of airlines as carriers look for greater market differentiation.
- On flights without built-in IFE or connectivity, “Near-FI” solutions offering, entertainment will become much more common. This will escalate in particular on low-cost carriers looking to differentiate their products.
- In-flight advertising will see the beginning of a new age of renaissance.
- The Internet of Things (IoT) will broaden from case-studies on aircraft to first tangible implementations.
- With the Bluetooth 5.0 specification released, we will see first announcements about Bluetooth connectivity to IFE in future products.
- Long-haul business class will enter a new era just as British Airways introduced the first lie-flat for business class in 1999. We could call it the suite era or the privacy era. This period will begin this year marked by increasing level of suite-like privacy on long-haul business class products. It will be initiated by visionary airlines in different manners and progress to a new bar for long-haul business class passenger experience over the next two decades.
Next, from Henry Chen Weinstein at Cockpit Innovations we have:
“I think 2017 in Tech will be about the upcoming implications of new technology on our current way of work. The [changing] place of startups in our space as more players understand the value of innovation on a global scale. Establishing new ways to take our aviation business forward.”
Here is the prediction note from John Courtright at SIE:
“I predict that the Modular Cabin Concept will generate a lot more attention from airline operators. The ability to transform a commercial aircraft from a “domestic” (2-Class) configuration to an “international” configuration (3-Class) on an overnight or less using palletized modules to swap out interiors will generate great interest from operators. Aside from the aircraft utilization flexibility, the Modular Cabin Concept will generate increased operational revenue (ROI) from a given aircraft asset by allowing the operator to customize their service level to different markets at a relatively low cost.”
Rich Salter, now with FTS chimed in with:
“All the talk about the death (or not) of seatback IFE is not the relevant question: the real interesting question is where will displays be located next – on the wrist, on entire seatbacks, baggage bins, sidewall of fuselage, VR or immersive glasses, etc., not to mention non-cabin locations like cockpit, baggage, lounges, etc. They could be thin as paper, and could be foldable/rollable (as are OLEDs). They will consume extremely low power and be fed data via wireless (WiFi). Smartwatches are only the beginning. In summary, advances in wireless streaming and display tech will lead to some fascinating implementations of IFE displays in unconventional places!”
Todd Hamblin at Global (GADC) told IFExpress in 2017:
- The Wireless IFE market will continue to grow, with Portable Wireless IFE being a subset for those ultra-low cost carriers.
- Companies based in China will become a larger part of the IFE and Connectivity landscape.
- An airline will attempt to install a Portable Wireless IFE system on their aircraft without permission from the FAA or EASA even though the server contains Lithium Ion batteries and might interfere with existing aircraft systems.
- The FAA will be impacted and safety compromised by the changing political climate.
“I predict that the first elastic virtual servers will creep into the cabin on airliners and it just might be Bluetooth that drives it. Elastic devices are the latest generation of server that expands and contracts based on demand. It’s a floating platform that can replicate itself in virtual space.”
Kelvin Boyette CEO of Latitude Aero observes:
- Mergers will dominate 2017, allowing the larger multi-national companies to offer a menu of turnkey services to both airlines and aircraft OEMs.
- 2017 will be the year that seat refurbishment emerges from its “niche” status. New products, such as IFE and ISPS, are emerging faster than new seat OEMs can get them into the seat, so the refurbishment centers are where the airlines will turn to offer the most up to date, modern, passenger experience to their clientele.
- Both BYOD and embedded IFE will flourish. I do not believe only one will succeed. Both will explode this year.
Michael Reilly, VP Entertainment Services, Arconics – A ViaSat Company notes:
- My key prediction for the year is that those airlines who don’t take the step into connectivity in 2017 will certainly take steps on the ‘path to connectivity’ – and there’s a couple of different ways to define that… I think a lot of airlines apart from the obvious cost barrier to entry to connectivity are waiting for other developments – competitive and even marketplace ie: changes to the vendor side of the industry – be that product, pricing etc.
- Naturally as we get more airlines closer to connectivity, security is becoming a hot topic, as is bigger and better use of data.
- Another prediction is that effective use of data will help break down the traditional siloing that has always gone on in the airline business and that’s exciting.
- I’d sum up my prediction by saying that 2017 is ‘finally’ the year where. Connectivity, Wireless and Mobile finally made the strides forward that moved the needle on the bottom line for airlines.
Craig Foster of Valour Consultancy said:
- We will see one of the in-flight connectivity service providers acquired by a much larger company. Additionally, we’ll also see at least one wireless in-flight entertainment vendor snapped up by someone with much more clout.
- The number of aircraft with in-flight connectivity systems installed and activated will surpass 7,000 by the end of the year. Regions aside from North America will continue to witness strong growth and we will likely see another carrier based in Latin America announce connectivity plans before long (in addition to Avianca Brasil and GOL).
- More and more airlines will announce plans to deploy IFE systems that allow passengers to pay their personal electronic devices to the main screen in an effort to match expectations around second screening and to better personalise the experience.
Unnamed 2017 Reader Predictions
We start off with predictions from a “Cabin Solution Provider”:
- The exponential growth of cabin Wi-Fi usage within the confines of the same aircraft will lead to more congestion in the cabin. One prediction says that passenger data to and from aircraft will more than quadruple in 2017. We knew that something like this was coming. However, what’s new is the speed at which this is happening.
- In 2017 the speed of the PED-pull in terms of passenger experience, apps etc. will increase even further. It certainly will be very much faster than the gentle ambling in which many of the aircraft hardware-push industry players are used to operate.
Another few from another Unnamed Predictor:
- Low cost carrier mergers and acquisitions will accelerate globally.
- With airline capacity surpassing global market demand, this will be a year including news of airline deferments and reductions. The exception to this rule will be in next-generation aircraft connecting previously unconnected city pairs. For the industry, this will be a relatively landing.
- Airlines in a more challenging global environment that raise their passenger experience will outperform carriers that focus on reducing passenger experience to reduce costs.
And lastly, still another Unnamed Predictor told IFExpress:
- Hacking the Baggage Systems at major hubs will occur to misdirect luggage?
- Hacking will occur to shut down refueling facilities at major airports.
- Hackers will find a way to infect the IFE system to download passenger data and airline sales information direct from the aircraft, putting at liability Airlines and IFE suppliers. Class Action suit to follow. Revenue streams will be jeopardized for both airlines, IFE suppliers and product/service providers accordingly.
- All economy seats on American / Domestic airlines will follow the pay as you go scheme: everything short of the toilets will be ‘pay to play’: boarding sequence; stowable baggage; check-in bags; food; drink; entertainment; EVERYTHING.
- Donald Trump’s administration will make significant progress to privatize government agencies and systems – a la Russian Model – Air Traffic Control will be privatized and sold off; FAA will be privatized; and the Space Programs under NASA will also be spun off. If not in this coming year, the effort may take at least part of his first term. (Editor’s Note: IFExpress apologizes to this predictor as we just did not have the space (nerve?) to post all the input – Sorry!).
Thank you to everybody who contributed and we close with the words of Arthur C. Clarke: “Any sufficiently advanced technology is indistinguishable from magic.”