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Narrow-body Market Presents Huge Opportunity for W-IFE

London. A new report from award-winning provider of market intelligence services, Valour Consultancy, suggests that wireless in-flight entertainment (W-IFE) will be installed on almost three-quarters of the global narrow-body fleet by 2030, up from just over a third today.

The report, “The Future of in-Flight Entertainment – 2021 Edition,” shows that although W-IFE installs did decrease by 19% in 2020 compared to the previous year, the market has remained resilient in the face of the pandemic with the installed base still managing to grow. This is in contrast to the seatback IFE market, which saw annual installations fall by 60% during the same period and a number of already equipped aircraft removed from the fleet.

David Whelan, author of the report, explains, “The pandemic has accelerated the need to digitalise the aircraft cabin, and many airlines see the installation of W-IFE as a central component of that process, as it allows for touchless seatback pockets, showcasing in-flight catering and retail options on passengers’ own devices. That’s a good example of how W-IFE solutions are moving away from traditional entertainment offerings, such as movies, music and TV shows, and encouraging different forms of ‘in-flight engagement.’”

As a result, Valour Consultancy predicts that there will be a significant change to the way W-IFE systems are installed over the next few years. “Today, the vast majority of W-IFE systems are retrofitted. In 2020, the ratio of retrofit to line fit installations was an unprecedented 96:4 – due in the main to massively reduced aircraft production,” Whelan says.

“However, industry developments, such as the Airbus Open Software Platform (OSP) and Boeing’s Digital Direct, will drive an increasing number of systems fitted at the factory,” he continues. “As such, we believe that line fitments will account for just under half of total W-IFE installs by 2030.”

The report also explores how W-IFE installs are related to the rollout of in-flight connectivity (IFC). In the past few years, unconnected W-IFE systems have taken precedence, but as more airlines adopt IFC in the long-term, Valour foresees that internet-enabled W-IFE will account for 84% of installs by 2030, up from 46% in 2019. “Unconnected offerings will certainly prove useful for airlines looking for a cost-effective way to win back passengers post-COVID, but they will become less relevant as carriers look more holistically at digitalising the aircraft cabin.”

ENDS

For information on the report please contact – david.whelan@valourconsultancy.com

Valour Consultancy is a provider of high-quality market intelligence. Its latest report, “The Future of In-Flight Entertainment – 2021 Edition”, is in its third edition and a key part of the firm’s highly regarded aviation research portfolio. Developed with input from more than 30 interviews with companies across the value chain, the study includes 55 tables and charts along with extensive commentary on key market issues, technology trends and the competitive environment.

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A new report from award-winning provider of market intelligence services, Valour Consultancy, suggests that wireless in-flight entertainment (W-IFE) will be installed on almost three-quarters of the global narrow-body fleet by 2030, up from just over a third today. The report, “The Future of in-Flight Entertainment – 2021 Edition,” shows that although W-IFE installs did decrease by 19% in 2020 compared to the previous year, the market has remained resilient in the face of the pandemic with the installed base still managing to grow. This is in contrast to the seatback IFE market, which saw annual installations fall by 60% during the same period and a number of already equipped aircraft removed from the fleet. David Whelan, author of the report, explains, “The pandemic has accelerated the need to digitalise the aircraft cabin, and many airlines see the installation of W-IFE as a central component of that process, as it allows for touchless seatback pockets, showcasing in-flight catering and retail options on passengers’ own devices. That’s a good example of how W-IFE solutions are moving away from traditional entertainment offerings, such as movies, music and TV shows, and encouraging different forms of ‘in-flight engagement.’” As a result, Valour Consultancy predicts that there will be a significant change to the way W-IFE systems are installed over the next few years. “Today, the vast majority of W-IFE systems are retrofitted. In 2020, the ratio of retrofit to line fit installations was an unprecedented 96:4 – due in the main to massively reduced aircraft production,” Whelan says. “However, industry developments, such as the Airbus Open Software Platform (OSP) and Boeing’s Digital Direct, will drive an increasing number of systems fitted at the factory,” he continues. “As such, we believe that line fitments will account for just under half of total W-IFE installs by 2030.” The report also explores how W-IFE installs are related to the rollout of in-flight connectivity (IFC). In the past few years, unconnected W-IFE systems have taken precedence, but as more airlines adopt IFC in the long-term, Valour foresees that internet-enabled W-IFE will account for 84% of installs by 2030, up from 46% in 2019. “Unconnected offerings will certainly prove useful for airlines looking for a cost-effective way to win back passengers post-COVID, but they will become less relevant as carriers look more holistically at digitalising the aircraft cabin.” ENDS For information on the report please contact - david.whelan@valourconsultancy.com Valour Consultancy is a provider of high-quality market intelligence. Its latest report, “The Future of In-Flight Entertainment - 2021 Edition”, is in its third edition and a key part of the firm’s highly regarded aviation research portfolio. Developed with input from more than 30 interviews with companies across the value chain, the study includes 55 tables and charts along with extensive commentary on key market issues, technology trends and the competitive environment. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Captive Portals Good Focal Point For Building IFC Business Case

It was refreshing to hear Mark Cheyney, Virgin Atlantic’s IFEC Development Manager, talk about the carrier’s in-flight connectivity (IFC) strategy during a recent Global Connected Aircraft podcast. He estimated that rolling out free Wi-Fi will take the airline years, as opposed to months, a statement devoid of marketing spiel. Instead, it reflected awareness of the fact that many airlines today cannot follow the likes of Air New Zealand, JetBlue and Qantas in covering browsing or streaming costs and highlighted the challenge of building a business case for IFC, especially in the current climate.

Cheyney’s interview also highlighted the increased confidence many airlines have around IFC, having grappled with the idea for years; a perspective Emirate’s SVP Retail, IFE & Connectivity Patrick Brannelly attributes partly to confusing marketing material from vendors. What we now see is more carriers with a greater awareness of what success looks like for their brand: A consistent offering across fleets and service providers, and a link between in-flight connectivity and the broader digital passenger journey.

Airlines are gradually moving away from the traditional turnkey offering and are taking on the responsibility for elements of the in-flight Wi-Fi service in pursuit of this success. One of Virgin Atlantic’s goals is to increase take-rates for its IFC services while still operating under a paid-for model. It intends to do so by enhancing the “stickiness” and functionality of its in-flight Wi-Fi portal, a part of the IFC experience many other airlines around the world are also looking at more closely.

Last July, American Airlines introduced a new in-flight Wi-Fi portal to provide a consistent experience across its fleet, harmonising the front end UX as well as the associated payment plans for its Viasat and Gogo-equipped aircraft. Similarly, Cathay Pacific enlisted Deutsche Telekom to provide the IFC portal for its entire connected fleet. It began rolling out on the airline’s A350s at the end of last year, offering a single-click login and “smart-pricing” models based on the length of the flight segment. Both solutions underscore the importance of removing the traditional pain points associated with paying for access to in-flight Wi-Fi by streamlining payment processes.

But the portal will quickly become so much more than a tool for moving take rates incrementally to the right. When executed well, an IFC portal becomes a central gateway to sources of ancillary revenue generation and loyalty, two central components for success in terms of airlines building back from the pandemic. A place where airlines can showcase and allow passengers to engage with the partnerships and solutions designed to enhance the customer experience. American’s upgraded portal, for example, is being tied to its loyalty program, which allows for more personalised features, including the ability to store user preferences for subsequent travel. Similarly, the “.air” portal deployed across IAG airlines allows passengers to use a single set of log-in credentials, no matter which airline they fly with.

IAG has tasked Immfly, the creators of the .air portal, to continue its evolution with new features, products and services that will undoubtedly tie into the wireless IFE provider’s advertising spin-off, QuiverTree Media, formed in October 2020. Immfly is one of an increasing number of companies helping airlines get more from IFC through powerful and engaging portals. Another is Finland-based Reaktor, a software specialist that has won awards for its work with Finnair, and worked with others including airBaltic, ANA and TAP Portugal.

Reaktor is known to support airlines with linking the inflight experience with the rest of the passenger journey. Its Pay Everywhere concept envisages travellers adding a payment method once, and it becoming available for use across the airline’s services, including in-flight. This way, all the data about passengers’ shopping behaviour is in one place, unlocking the potential for a truly seamless and personalised travel experience.

In the immediate future, we expect to see more examples of airlines making IFC portals a key piece of their in-flight product strategy, with onboard Wi-Fi seen more as an enabler rather than standalone offering. This trend will be amplified by the need for touchless access to products and services during the industry’s immediate recovery from COVID-19. Are we suggesting the portal is a silver bullet to completely unlock the IFC business model? No. But those airlines which embrace the portal as a central hub for onboard services and as a link to the broader digital journey stand a better chance of building a case to move to a free IFC model sooner than anticipated.

This subject is one of many discussed in our newly released report – The Future of IFC – 2020.

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He estimated that rolling out free Wi-Fi will take the airline years, as opposed to months, a statement devoid of marketing spiel. Instead, it reflected awareness of the fact that many airlines today cannot follow the likes of Air New Zealand, JetBlue and Qantas in covering browsing or streaming costs and highlighted the challenge of building a business case for IFC, especially in the current climate. Cheyney’s interview also highlighted the increased confidence many airlines have around IFC, having grappled with the idea for years; a perspective Emirate’s SVP Retail, IFE & Connectivity Patrick Brannelly attributes partly to confusing marketing material from vendors. What we now see is more carriers with a greater awareness of what success looks like for their brand: A consistent offering across fleets and service providers, and a link between in-flight connectivity and the broader digital passenger journey. Airlines are gradually moving away from the traditional turnkey offering and are taking on the responsibility for elements of the in-flight Wi-Fi service in pursuit of this success. One of Virgin Atlantic’s goals is to increase take-rates for its IFC services while still operating under a paid-for model. It intends to do so by enhancing the “stickiness” and functionality of its in-flight Wi-Fi portal, a part of the IFC experience many other airlines around the world are also looking at more closely. Last July, American Airlines introduced a new in-flight Wi-Fi portal to provide a consistent experience across its fleet, harmonising the front end UX as well as the associated payment plans for its Viasat and Gogo-equipped aircraft. Similarly, Cathay Pacific enlisted Deutsche Telekom to provide the IFC portal for its entire connected fleet. It began rolling out on the airline’s A350s at the end of last year, offering a single-click login and “smart-pricing” models based on the length of the flight segment. Both solutions underscore the importance of removing the traditional pain points associated with paying for access to in-flight Wi-Fi by streamlining payment processes. But the portal will quickly become so much more than a tool for moving take rates incrementally to the right. When executed well, an IFC portal becomes a central gateway to sources of ancillary revenue generation and loyalty, two central components for success in terms of airlines building back from the pandemic. A place where airlines can showcase and allow passengers to engage with the partnerships and solutions designed to enhance the customer experience. American’s upgraded portal, for example, is being tied to its loyalty program, which allows for more personalised features, including the ability to store user preferences for subsequent travel. Similarly, the “.air” portal deployed across IAG airlines allows passengers to use a single set of log-in credentials, no matter which airline they fly with. IAG has tasked Immfly, the creators of the .air portal, to continue its evolution with new features, products and services that will undoubtedly tie into the wireless IFE provider’s advertising spin-off, QuiverTree Media, formed in October 2020. Immfly is one of an increasing number of companies helping airlines get more from IFC through powerful and engaging portals. Another is Finland-based Reaktor, a software specialist that has won awards for its work with Finnair, and worked with others including airBaltic, ANA and TAP Portugal. Reaktor is known to support airlines with linking the inflight experience with the rest of the passenger journey. Its Pay Everywhere concept envisages travellers adding a payment method once, and it becoming available for use across the airline’s services, including in-flight. This way, all the data about passengers’ shopping behaviour is in one place, unlocking the potential for a truly seamless and personalised travel experience. In the immediate future, we expect to see more examples of airlines making IFC portals a key piece of their in-flight product strategy, with onboard Wi-Fi seen more as an enabler rather than standalone offering. This trend will be amplified by the need for touchless access to products and services during the industry’s immediate recovery from COVID-19. Are we suggesting the portal is a silver bullet to completely unlock the IFC business model? No. But those airlines which embrace the portal as a central hub for onboard services and as a link to the broader digital journey stand a better chance of building a case to move to a free IFC model sooner than anticipated. This subject is one of many discussed in our newly released report - The Future of IFC - 2020. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Airlines Must Break Down Barriers to Benefit from In-Flight Digital Advertising

Global digital advertising spend in 2020 reached US$332 billion and was set to overtake traditional, non-digital ad spend for the first time. With this in mind, it may come as a surprise that in-flight digital advertising is far from lucrative. With fill rates currently hovering around just 30% for video adverts and 20% for static/display adverts, IFEC-driven advertising yielded airlines an estimated $266 million in 2019.

This is frustratingly low considering passengers travelling by air, a captive audience with proven disposable income, represent a desirable demographic that advertisers are keen to reach. A survey from in-flight programmatic advertising specialists Inadvia on the impact of COVID-19 saw 82% of respondents say reaching in-market travellers will be important in their marketing/media strategy following the pandemic.

So, what’s stopping advertisers from working more expansively with airlines? The reasons are many. Passenger numbers don’t always give brands the scale they want, and lengthy IFE content refresh cycles of 30-40 days preclude them from many campaigns.

In some cases, airlines themselves are the issue, with strict policies about who and what they are willing to promote. Such policies prevent some carriers from engaging meaningfully with programmatic advertising, a solution that automates the advertising workflow, from trading (the buying and selling of media), to serving (delivering the right ad to the right person) and reporting (proving the ad was served to the person). There’s a common misconception that programmatic advertising means a loss of control over the ads featured, but this isn’t the case – platforms such as Inadvia’s allow blacklisted brands or sectors to be inserted up-front and to ensure creative approval is received for every campaign. More and more advertisers are buying and running their digital campaigns in this way today.

Another barrier is the airline industry’s inability to target adverts to passengers beyond those flying on certain city pairs, for example, as well as the lack of available analytics regarding an ad’s performance ­– some airlines can still only provide a picture or video of an ad playing on a seatback screen. This is changing, albeit slowly, as industry bodies such as APEX’s Ad Delivery Working Group forge ahead with creating an industry standard for advertising data; and its Airline Advertising and Ancillary Revenue Committee (ARC) works to simplify related discussions between all involved parties.

Another significant development is that new in-flight entertainment (IFE) platforms are being designed with digital advertising capabilities and e-commerce in mind. Many now focus on engagement rather than traditional entertainment, such as movies and TV shows. ScootHub, developed together by AirFi and Scoot’s catering partner SATS, includes access to travel guides and an in-flight map, which provide the opportunity for geo-specific ads. Similarly, easyJet is trialling ePax, a platform created by Black Swan Data and catering company gategroup, that will use machine learning to present customers “with more of what they want, based on factors such as flight destination, flight duration and time of day, as well as insights generated by a wealth of inflight retail data.”

With Google Chrome set to follow Safari and Firefox and end its support for third-party cookies by 2022, publishers who collect and own their own data (referred to as first-party data) will be in an incredibly strong position and become far more enticing partners for advertisers searching for fully transparent and compliant ways to reach their target audiences. As well as the contextual insights mentioned above, airlines naturally have access to a range of first-party data from customers, such as their age, gender, frequent flyer status and more. If this is embraced properly, there is a huge opportunity to attract significantly more advertising investment into the sector.

We predict that while the take rate for seatback IFE will remain at 75% between now and 2030, a positive experience with increasingly sophisticated wireless IFE (W-IFE) platforms will drive their take rate from around 30% today up to 50% by 2030. Likewise, increased targeting, combined with more flexibility from airlines – like the incorporation of dynamic ad insertion, which allows advertisers to act on any analytics they receive by swapping out their creative updates more frequently – will also improve the uptake of digital in-flight ads.

None of the aforementioned solutions require IFC to function (indeed, the real-time bidding process used for some programmatic ads on the ground would be a costly and unnecessary use of an airline’s available bandwidth). However, targeting and measurement will continue to improve as a result of more widespread IFC. Connectivity will certainly make display ads more attractive, because passengers can click through to beyond a bespoke-built offline mini site, the cost- and time-intensive option for airlines without IFC. Advertisers will be willing to pay to transact with passengers more easily.

IFC will also mean there’s potential for passengers to engage with more ads. A greater adoption of freemium models will likely require passengers to interact with video and display ads before their sessions commence. In future, interstitial ads could also be introduced, much like those in use by YouTube. Between now and 2030, there’s potential for the take rate for freemium IFC to break past the 60% mark, a further attraction for advertisers.

As all these changes continue and programmatic advertising becomes more widespread, we believe the fill rates for both video and static/display adverts will top out at 80% by 2026 (it’s unlikely to hit 100% because there will always be routes or targeting criteria less desirable to advertisers than others).

Overall, we predict the in-flight digital advertising market will be worth $3.3 billion by 2030, which is representative of a 10-year CAGR between 2020 and 2030 of 42.9 per cent – quite astounding given the extent to which revenues have declined in 2020 and 2021 due to COVID-19. It’s finally time for the aviation industry to catch up with the capabilities – and the rewards – seen in digital ad space on the ground. More on this topic can be found in Valour Consultancy’s forthcoming report “The Future of In-Flight Entertainment Content.

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[fusion_builder_container hundred_percent="no" hundred_percent_height="no" hundred_percent_height_scroll="no" hundred_percent_height_center_content="yes" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" status="published" publish_date="" class="" id="" border_size="" border_color="" border_style="solid" margin_top="" margin_bottom="" padding_top="" padding_right="" padding_bottom="" padding_left="" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center" linear_angle="180" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" enable_mobile="no" parallax_speed="0.3" background_blend_mode="none" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" video_preview_image="" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0"][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" spacing="" center_content="no" link="" target="_self" min_height="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" hover_type="none" border_size="0" border_color="" border_style="solid" border_position="all" border_radius="" box_shadow="no" dimension_box_shadow="" box_shadow_blur="0" box_shadow_spread="0" box_shadow_color="" box_shadow_style="" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="" margin_bottom="" background_type="single" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center" linear_angle="180" background_color="" background_image="" background_image_id="" background_position="left top" background_repeat="no-repeat" background_blend_mode="none" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset="" filter_type="regular" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0" last="no"][fusion_imageframe image_id="5696|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="none" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]https://valourconsultancy.com/wp-content/uploads/2021/01/target-group-3460039_1920-e1611325214847.jpg[/fusion_imageframe][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text columns="" column_min_width="" column_spacing="" rule_style="default" rule_size="" rule_color="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""] Global digital advertising spend in 2020 reached US$332 billion and was set to overtake traditional, non-digital ad spend for the first time. With this in mind, it may come as a surprise that in-flight digital advertising is far from lucrative. With fill rates currently hovering around just 30% for video adverts and 20% for static/display adverts, IFEC-driven advertising yielded airlines an estimated $266 million in 2019. This is frustratingly low considering passengers travelling by air, a captive audience with proven disposable income, represent a desirable demographic that advertisers are keen to reach. A survey from in-flight programmatic advertising specialists Inadvia on the impact of COVID-19 saw 82% of respondents say reaching in-market travellers will be important in their marketing/media strategy following the pandemic. So, what’s stopping advertisers from working more expansively with airlines? The reasons are many. Passenger numbers don’t always give brands the scale they want, and lengthy IFE content refresh cycles of 30-40 days preclude them from many campaigns. In some cases, airlines themselves are the issue, with strict policies about who and what they are willing to promote. Such policies prevent some carriers from engaging meaningfully with programmatic advertising, a solution that automates the advertising workflow, from trading (the buying and selling of media), to serving (delivering the right ad to the right person) and reporting (proving the ad was served to the person). There’s a common misconception that programmatic advertising means a loss of control over the ads featured, but this isn’t the case – platforms such as Inadvia’s allow blacklisted brands or sectors to be inserted up-front and to ensure creative approval is received for every campaign. More and more advertisers are buying and running their digital campaigns in this way today. Another barrier is the airline industry’s inability to target adverts to passengers beyond those flying on certain city pairs, for example, as well as the lack of available analytics regarding an ad’s performance ­– some airlines can still only provide a picture or video of an ad playing on a seatback screen. This is changing, albeit slowly, as industry bodies such as APEX’s Ad Delivery Working Group forge ahead with creating an industry standard for advertising data; and its Airline Advertising and Ancillary Revenue Committee (ARC) works to simplify related discussions between all involved parties. Another significant development is that new in-flight entertainment (IFE) platforms are being designed with digital advertising capabilities and e-commerce in mind. Many now focus on engagement rather than traditional entertainment, such as movies and TV shows. ScootHub, developed together by AirFi and Scoot’s catering partner SATS, includes access to travel guides and an in-flight map, which provide the opportunity for geo-specific ads. Similarly, easyJet is trialling ePax, a platform created by Black Swan Data and catering company gategroup, that will use machine learning to present customers “with more of what they want, based on factors such as flight destination, flight duration and time of day, as well as insights generated by a wealth of inflight retail data.” With Google Chrome set to follow Safari and Firefox and end its support for third-party cookies by 2022, publishers who collect and own their own data (referred to as first-party data) will be in an incredibly strong position and become far more enticing partners for advertisers searching for fully transparent and compliant ways to reach their target audiences. As well as the contextual insights mentioned above, airlines naturally have access to a range of first-party data from customers, such as their age, gender, frequent flyer status and more. If this is embraced properly, there is a huge opportunity to attract significantly more advertising investment into the sector. We predict that while the take rate for seatback IFE will remain at 75% between now and 2030, a positive experience with increasingly sophisticated wireless IFE (W-IFE) platforms will drive their take rate from around 30% today up to 50% by 2030. Likewise, increased targeting, combined with more flexibility from airlines – like the incorporation of dynamic ad insertion, which allows advertisers to act on any analytics they receive by swapping out their creative updates more frequently – will also improve the uptake of digital in-flight ads. None of the aforementioned solutions require IFC to function (indeed, the real-time bidding process used for some programmatic ads on the ground would be a costly and unnecessary use of an airline’s available bandwidth). However, targeting and measurement will continue to improve as a result of more widespread IFC. Connectivity will certainly make display ads more attractive, because passengers can click through to beyond a bespoke-built offline mini site, the cost- and time-intensive option for airlines without IFC. Advertisers will be willing to pay to transact with passengers more easily. IFC will also mean there’s potential for passengers to engage with more ads. A greater adoption of freemium models will likely require passengers to interact with video and display ads before their sessions commence. In future, interstitial ads could also be introduced, much like those in use by YouTube. Between now and 2030, there’s potential for the take rate for freemium IFC to break past the 60% mark, a further attraction for advertisers. As all these changes continue and programmatic advertising becomes more widespread, we believe the fill rates for both video and static/display adverts will top out at 80% by 2026 (it’s unlikely to hit 100% because there will always be routes or targeting criteria less desirable to advertisers than others). Overall, we predict the in-flight digital advertising market will be worth $3.3 billion by 2030, which is representative of a 10-year CAGR between 2020 and 2030 of 42.9 per cent – quite astounding given the extent to which revenues have declined in 2020 and 2021 due to COVID-19. It’s finally time for the aviation industry to catch up with the capabilities – and the rewards – seen in digital ad space on the ground. More on this topic can be found in Valour Consultancy’s forthcoming report “The Future of In-Flight Entertainment Content. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Valour Announces Several Key Improvements to its Quarterly IFE and IFC Trackers

In 2016, to supplement our in-depth annual deep dive into the in-flight connectivity (IFC) market, Valour Consultancy launched a quarterly tracker product designed to keep those with a vested interest in the area updated on installation activity and key trends. One year later, we announced a similar product, which tracks the market for wireless in-flight entertainment (W-IFE) systems. Both trackers were the first of their kind and have proved to be extremely popular with our client base, which, we’re proud to say, consists of a “who’s who” of the IFEC and cabin technology value chain.

Not content to rest on our laurels, and in keeping with our ongoing commitment to continually improve and adapt, both products have undergone a transformation in 2020. The quarterly IFC tracker, for example, has been hugely expanded to show the total addressable market of aircraft that have not yet installed a system and are not currently earmarked to have one fitted in future. As a result of the massive disruption caused by COVID-19, we also added a new feature allowing users to see which connected aircraft are currently active, versus those that are grounded. The quarterly W-IFE tracker saw the “W” dropped as we expanded our focus to the entirety of the IFE market, providing data on seatback and overhead IFE system equipage, in addition to wireless. Another addition to the IFE data was the inclusion of server and WAP manufacturers for each deployment.

The biggest change, however, is the way in which we present this data. For the last four years, subscribers have received an Excel workbook containing current and historic data, as well as a PowerPoint summary detailing key announcements during the reporting period and its effect on the numbers contained within. Starting with the IFC tracker, we’ve now created an additional online user-friendly dashboard that allows clients to better visualise and interact with the data. It includes:

  • Dynamic charts that allow you to remove specific data and export them to JPEGs for your presentations
  • Raw quarterly data that can be filtered based on your query and exported to CSV or Excel
  • Raw addressable market data that can be filtered based on your query and exported to CSV or Excel

We’re in the process of bringing to life our IFE data in the same way and starting in 2021, we’ll also begin to dive more deeply into the type of content being provided on wireless systems. This is especially important as the “E” in IFE moves away from entertainment in the traditional sense of the word and more about maximising engagement with passengers. To this end, you’ll soon be able to see whether a system shows movie/TV content, as well as games, ePublications/eBooks, destination content, seat-to-seat chat, music/other audio, buy-on-board, plus whether or not it forms the basis of an IFC portal too.

Looking ahead, we’ve every intention of continuing to modernise our deliverables to generate better insight in a more efficient way. What subscribers see today is stage one of this process and further enhancements will be made incrementally in the future. Indeed, we’re close to finalising a partnership that will give us the ability to provide IFE and IFC equipage down to the tail level. More information on this important development will be provided via the usual channels in due course.

If you’d like any additional information on these trackers or if you have any thoughts or feedback on other improvements that we could make, then we’d be delighted to hear from you. And if you’d like to arrange an online demonstration to take a closer look at what we have to offer, then please let us know. We can be reached at info@valourconsultancy.com.

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[fusion_builder_container hundred_percent="no" hundred_percent_height="no" hundred_percent_height_scroll="no" hundred_percent_height_center_content="yes" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" status="published" publish_date="" class="" id="" border_size="" border_color="" border_style="solid" margin_top="" margin_bottom="" padding_top="" padding_right="" padding_bottom="" padding_left="" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center" linear_angle="180" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" enable_mobile="no" parallax_speed="0.3" background_blend_mode="none" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" video_preview_image="" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0"][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" spacing="" center_content="no" link="" target="_self" min_height="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" hover_type="none" border_size="0" border_color="" border_style="solid" border_position="all" border_radius="" box_shadow="no" dimension_box_shadow="" box_shadow_blur="0" box_shadow_spread="0" box_shadow_color="" box_shadow_style="" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="" margin_bottom="" background_type="single" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center" linear_angle="180" background_color="" background_image="" background_image_id="" background_position="left top" background_repeat="no-repeat" background_blend_mode="none" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset="" filter_type="regular" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0" last="no"][fusion_imageframe image_id="5643|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="none" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]https://valourconsultancy.com/wp-content/uploads/2020/11/How-to-use-data-visualization-report-design-e1605715318732.png[/fusion_imageframe][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text columns="" column_min_width="" column_spacing="" rule_style="default" rule_size="" rule_color="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""] In 2016, to supplement our in-depth annual deep dive into the in-flight connectivity (IFC) market, Valour Consultancy launched a quarterly tracker product designed to keep those with a vested interest in the area updated on installation activity and key trends. One year later, we announced a similar product, which tracks the market for wireless in-flight entertainment (W-IFE) systems. Both trackers were the first of their kind and have proved to be extremely popular with our client base, which, we’re proud to say, consists of a “who’s who” of the IFEC and cabin technology value chain. Not content to rest on our laurels, and in keeping with our ongoing commitment to continually improve and adapt, both products have undergone a transformation in 2020. The quarterly IFC tracker, for example, has been hugely expanded to show the total addressable market of aircraft that have not yet installed a system and are not currently earmarked to have one fitted in future. As a result of the massive disruption caused by COVID-19, we also added a new feature allowing users to see which connected aircraft are currently active, versus those that are grounded. The quarterly W-IFE tracker saw the “W” dropped as we expanded our focus to the entirety of the IFE market, providing data on seatback and overhead IFE system equipage, in addition to wireless. Another addition to the IFE data was the inclusion of server and WAP manufacturers for each deployment. The biggest change, however, is the way in which we present this data. For the last four years, subscribers have received an Excel workbook containing current and historic data, as well as a PowerPoint summary detailing key announcements during the reporting period and its effect on the numbers contained within. Starting with the IFC tracker, we’ve now created an additional online user-friendly dashboard that allows clients to better visualise and interact with the data. It includes:
  • Dynamic charts that allow you to remove specific data and export them to JPEGs for your presentations
  • Raw quarterly data that can be filtered based on your query and exported to CSV or Excel
  • Raw addressable market data that can be filtered based on your query and exported to CSV or Excel
We’re in the process of bringing to life our IFE data in the same way and starting in 2021, we’ll also begin to dive more deeply into the type of content being provided on wireless systems. This is especially important as the “E” in IFE moves away from entertainment in the traditional sense of the word and more about maximising engagement with passengers. To this end, you’ll soon be able to see whether a system shows movie/TV content, as well as games, ePublications/eBooks, destination content, seat-to-seat chat, music/other audio, buy-on-board, plus whether or not it forms the basis of an IFC portal too. Looking ahead, we’ve every intention of continuing to modernise our deliverables to generate better insight in a more efficient way. What subscribers see today is stage one of this process and further enhancements will be made incrementally in the future. Indeed, we’re close to finalising a partnership that will give us the ability to provide IFE and IFC equipage down to the tail level. More information on this important development will be provided via the usual channels in due course. If you’d like any additional information on these trackers or if you have any thoughts or feedback on other improvements that we could make, then we’d be delighted to hear from you. And if you’d like to arrange an online demonstration to take a closer look at what we have to offer, then please let us know. We can be reached at info@valourconsultancy.com. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

PR: Despite Pandemic, IFC Terminal Installed Base in Business Aviation to Reach 32,000 by 2029

August 13, 2020 13:00 British Summer Time (BST)

London. A new report predicts strong take-up of in-flight connectivity (IFC) systems on business aircraft over the next ten years. According to Valour Consultancy, an award-winning provider of market intelligence services, the number of IFC terminals installed on business jets will rise to almost 32,000 in 2029 – up from 20,689 at the end of 2019.

The report – “The Market for IFEC and CMS on VVIP and Business Aircraft” – predicts a sharp drop-off in installation activity in 2020 as a result of the COVID-19 pandemic but sees the market picking up more quickly than commercial aviation. “Annual installations of IFC systems on business aircraft are set to fall by 28 per cent in 2020 compared to 2019 said report author, Craig Foster. “While 2021 will be another tough year, the launch of several new solutions will provide impetus. Deployments from SmartSky Networks, Iridium (with Certus) and SES/Collins Aerospace (LuxStream) are all expected to ramp up at this point in time. Intelsat and Satcom Direct will resume new installs for the FlexExec service too” he continued.

Foster also highlights how the market could benefit from current and ongoing airline capacity reductions and people looking less favourably on travelling through crowded airports and in cramped commercial aircraft cabins. “So-called health corridors are starting to emerge as increased interest in flying privately from those who haven’t previously done so acts as a catalyst of the recovery. Many fractional providers are reporting that recent months have seen record enquiries from new customers. We also expect to see more business jets being used by corporations to transport employees beyond the C-suite to protect them from COVID-19 and recent moves to create more flexible business models will help support these added users” said Foster.

The report also takes a look at the closely-related markets for in-flight entertainment (IFE) and cabin management systems (CMS). Due to the higher costs associated with installation of these systems and private aircraft owners and operators said to be prioritising IFC when pulling back on discretionary spend, the impact of the outbreak is expected to be more profound in 2020 and 2021. “While IFE/CMS vendors have been harder hit, the adoption of wireless in-flight entertainment (W-IFE) and full CMS functionality on smaller aircraft like small cabin jets and turboprops is expected to increase, expanding the total addressable market beyond the mid- to large-cabin aircraft that have long been the staple of the market” concluded Foster.

Valour Consultancy is a provider of high-quality market intelligence. Its latest report “The Market for IFEC and CMS on VVIP and Business Aircraft – 2020 Edition is the newest addition to the firm’s highly-regarded aviation research portfolio. Developed with input from more than 30 companies across the value chain, the study includes 85 tables and charts along with extensive commentary on key market issues, technology trends and the competitive environment.

Contact: info@valourconsultancy.com

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[fusion_builder_container hundred_percent="no" hundred_percent_height="no" hundred_percent_height_scroll="no" hundred_percent_height_center_content="yes" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" status="published" publish_date="" class="" id="" border_size="" border_color="" border_style="solid" margin_top="" margin_bottom="" padding_top="" padding_right="" padding_bottom="" padding_left="" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center" linear_angle="180" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" enable_mobile="no" parallax_speed="0.3" background_blend_mode="none" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" video_preview_image="" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0"][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" spacing="" center_content="no" link="" target="_self" min_height="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" hover_type="none" border_size="0" border_color="" border_style="solid" border_position="all" border_radius="" box_shadow="no" dimension_box_shadow="" box_shadow_blur="0" box_shadow_spread="0" box_shadow_color="" box_shadow_style="" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="" margin_bottom="" background_type="single" gradient_start_color="" gradient_end_color="" gradient_start_position="0" gradient_end_position="100" gradient_type="linear" radial_direction="center" linear_angle="180" background_color="" background_image="" background_image_id="" background_position="left top" background_repeat="no-repeat" background_blend_mode="none" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset="" filter_type="regular" filter_hue="0" filter_saturation="100" filter_brightness="100" filter_contrast="100" filter_invert="0" filter_sepia="0" filter_opacity="100" filter_blur="0" filter_hue_hover="0" filter_saturation_hover="100" filter_brightness_hover="100" filter_contrast_hover="100" filter_invert_hover="0" filter_sepia_hover="0" filter_opacity_hover="100" filter_blur_hover="0" last="no"][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text columns="" column_min_width="" column_spacing="" rule_style="default" rule_size="" rule_color="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""] August 13, 2020 13:00 British Summer Time (BST) London. A new report predicts strong take-up of in-flight connectivity (IFC) systems on business aircraft over the next ten years. According to Valour Consultancy, an award-winning provider of market intelligence services, the number of IFC terminals installed on business jets will rise to almost 32,000 in 2029 – up from 20,689 at the end of 2019. The report – “The Market for IFEC and CMS on VVIP and Business Aircraft” – predicts a sharp drop-off in installation activity in 2020 as a result of the COVID-19 pandemic but sees the market picking up more quickly than commercial aviation. “Annual installations of IFC systems on business aircraft are set to fall by 28 per cent in 2020 compared to 2019 said report author, Craig Foster. “While 2021 will be another tough year, the launch of several new solutions will provide impetus. Deployments from SmartSky Networks, Iridium (with Certus) and SES/Collins Aerospace (LuxStream) are all expected to ramp up at this point in time. Intelsat and Satcom Direct will resume new installs for the FlexExec service too” he continued. Foster also highlights how the market could benefit from current and ongoing airline capacity reductions and people looking less favourably on travelling through crowded airports and in cramped commercial aircraft cabins. “So-called health corridors are starting to emerge as increased interest in flying privately from those who haven’t previously done so acts as a catalyst of the recovery. Many fractional providers are reporting that recent months have seen record enquiries from new customers. We also expect to see more business jets being used by corporations to transport employees beyond the C-suite to protect them from COVID-19 and recent moves to create more flexible business models will help support these added users” said Foster. The report also takes a look at the closely-related markets for in-flight entertainment (IFE) and cabin management systems (CMS). Due to the higher costs associated with installation of these systems and private aircraft owners and operators said to be prioritising IFC when pulling back on discretionary spend, the impact of the outbreak is expected to be more profound in 2020 and 2021. “While IFE/CMS vendors have been harder hit, the adoption of wireless in-flight entertainment (W-IFE) and full CMS functionality on smaller aircraft like small cabin jets and turboprops is expected to increase, expanding the total addressable market beyond the mid- to large-cabin aircraft that have long been the staple of the market” concluded Foster. Valour Consultancy is a provider of high-quality market intelligence. Its latest report “The Market for IFEC and CMS on VVIP and Business Aircraft – 2020 Edition is the newest addition to the firm’s highly-regarded aviation research portfolio. Developed with input from more than 30 companies across the value chain, the study includes 85 tables and charts along with extensive commentary on key market issues, technology trends and the competitive environment. Contact: info@valourconsultancy.com [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Re-Imagining the Passenger Experience in a Post Coronavirus World

Airlines the world over have grounded large parts of their fleets and announced plans to lay off thousands of staff as they attempt to survive a near shutdown of international travel amid the widening coronavirus pandemic. The severity of the crisis has prompted carriers to turn to governments for a lifeline and according to IATA, the global industry needs bailout measures of between $150 billion and $200 billion if it is to survive. And even then, the pandemic is likely to reshape the industry with many airlines sadly failing and entirely new groupings emerging. It will also have huge ramifications for the way people fly once this is all over and whilst it might not seem like a high priority right now, airlines need to think about how they’ll adapt to the needs of entirely different passengers post coronavirus.

It goes without saying that there will be a huge amount of trepidation about travelling for many years once a semblance of normality resumes – especially amongst those from countries that have been hardest hit by the outbreak. Face masks and maybe even gloves will become standard garb for passengers keen to minimise their risk of infection, cleaning routines between turns will be stepped up a level or two and extra screening measures to detect signs of fever could emerge as the new norm in an already stressful airport experience. Even so, these steps will not be enough to reassure many passengers of their safety on-board and their behaviour will change forever. And by extension, so too will the way in which they interact with on-board technology.

While airlines will no doubt shout from the rooftops about how thoroughly they clean and disinfect tray tables, in-flight entertainment (IFE) screens and head rests pre- and post-flight in this brave new world, it is not hard to imagine passengers adopting a cocoon-like state during their journey, fearful of what, and who, they might come into contact with.

This could very well entail reduced interaction with seatback screens and passenger control units (PCUs), with a possible knock-on effect for ancillary revenue generation through these systems. Expect IFE vendors to ratchet up the wellness angle another notch and mimic seat manufacturers in announcing new, self-cleaning screens that involve the use of antimicrobial coatings. Panasonic Avionics has already moved in this direction with its nanoe air filtration system, a feature of the forthcoming NEXT platform that can extract pungent smells from the cabin and remove airborne pathogens.

New user interface technologies like eye-tracking and gesture control could also have an important role to play. Thales has previously demonstrated a prototype for next generation business-class seats, which include iris-tracking to detect when passengers are looking away or when their eyes are closed. However, both technologies are clearly immature in terms of their use on-board aircraft and far from perfect replacements for the touchscreen we’ve all become accustomed to using with expert dexterity. Indeed, it could even be that hand or arm gestures from those in adjacent seats actually decreases the feeling of distance – a concept all of us are rapidly becoming familiar with.

Despite growing familiarity with smart speakers in our everyday lives, it seems a stretch to imagine that voice control will soon become the de-facto IFE control mechanism. Offline voice recognition of multiple languages/accents would presumably take a fair bit of computing power, while in-flight connectivity (IFC) – if it is even installed alongside IFE – is not quite at the point where it could handle the sending and receiving of a huge amount of data packets to and from the cloud for analysis. Nor could cash-strapped airlines afford the associated bandwidth costs. And then there’s the not-so-trifling issue of how to filter out the array of always-present background cabin noise.

More likely then is the use of the passenger PED as a remote control for the screen in front. Interaction with one’s own device is fraught with less “danger” and many of us already use our smartphones to control other smart devices at home. Rather than a YouTube-style PIN approach to pairing PED with seatback, a more hygienic method would surely involve the use of Bluetooth or NFC. Coronavirus or not, Bluetooth will become a standard feature of IFE to enable passengers to use their own headphones and both Safran (Zii) and Panasonic Avionics have recently introduced Bluetooth capabilities on the RAVE Ultra and eX3 and NEXT systems, respectively. NFC, meanwhile, can also be used to process payments from contactless cards and mobile wallets – a key consideration now that the spotlight is firmly on the unhygienic nature of handling cash.

The use of NFC will, of course, have an important role to play as the self-service model rises to prominence. Passengers may limit their interaction with flight attendants and browse digital magazines and food and drink menus on their PEDs or on seatback screens controlled by PEDs instead of flicking through oft-touched paper versions stored in germ-harbouring seat pockets. LEVEL’s award-winning payment system, developed by Black Swan, does just this and can even save card details for simplified repeat purchases on board.

One could even make the argument that coronavirus may finally succeed where IFC and later, wireless IFE (W-IFE), failed in killing off the humble seatback screen. Airlines will be under immense pressure to shed operational spend and the high up-front and on-going costs associated with embedded IFE could be too much for some to bear. How early window content (EWC) – which has helped prolong the life of this form of IFE – is eventually dealt with by Hollywood studios will have a huge bearing on how things eventually pan out. As a result of the pandemic, many of the films that recently hit the big screen or were slated to still be in theatres are instead heading straight to home entertainment release. Trolls World Tour, for example, was due to be in cinemas on April 10th but will now be available on streaming and digital services without making a theatrical debut. This begs the question, for how long will the streaming of EWC to passenger PEDs be prohibited?

The myriad of W-IFE vendors currently active in the market will doubtless be following these events with a keen eye. If more airlines ultimately opt to eschew embedded IFE post coronavirus, what is the optimal way to consume W-IFE? Right now, many systems are installed on aircraft where there is no in-seat power, which is mind-boggling given that the two technologies are inextricably linked. No power? No IFE! And even where in-seat power is present, consuming content on a PED whilst charging the device can be uncomfortable for passengers and becomes more difficult during mealtimes when the tray table is in use. Astronics and SmartTray have sought to provide an answer to this “hold and power” question by developing a dock style wireless charging hinge mechanism integrated into the back of the tray table. Could the next step involve the use of an inductive surface above the meal tray and some sort of PED-sized “pocket” to prevent devices falling to the floor?

While there are several other benefits of inductive charging, there are numerous problems still to be ironed out. For one, the power efficiency of inductive charging pads is currently 60-70%, compared to >90% for traditional outlets. This requires bigger, more expensive power supply units with more heat dissipation, which could nullify, to some extent, any cost savings realised from not installing seatback IFE in the first place. Additionally, wireless charging takes longer, which may be of more concern on shorter journeys where W-IFE is more likely to be installed.

Heightened hygiene and sanitation concerns could, conceivably, impact on newer forms of IFE too. Portable solutions have witnessed phenomenal growth in recent years but their very nature means they are frequently touched by cabin crew, ground handlers, catering and cleaning partners. New “zero touch” portable units that can be plugged into the on-board power supply are not taken on and off the aircraft with anywhere near the same degree of regularity and could be in increased demand going forwards.

There are many unknowns at this still early stage of the outbreak and we really ought to re-iterate that medical experts believe the risk of catching a virus on a flight to be incredibly small. However, it is important for airlines and their suppliers to start looking forward and planning ahead in these unprecedented times. To this end, Valour Consultancy will continue to share unbiased insight and analysis on key trends relating to IFEC and cabin technology and our reports will be as comprehensive as they’ve always been. If you have any questions or queries about our research or want to reach out for a quick chat to brainstorm ideas, our door is always open.

Stay safe and healthy!

Valour Consultancy

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="5303|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="center" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]https://valourconsultancy.com/wp-content/uploads/2020/03/12c51ea9ed7611a127aa27f26be64ef1e9390fd9-scaled-e1585144762134.jpg[/fusion_imageframe][fusion_separator style_type="none" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text columns="" column_min_width="" column_spacing="" rule_style="default" rule_size="" rule_color="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""] Airlines the world over have grounded large parts of their fleets and announced plans to lay off thousands of staff as they attempt to survive a near shutdown of international travel amid the widening coronavirus pandemic. The severity of the crisis has prompted carriers to turn to governments for a lifeline and according to IATA, the global industry needs bailout measures of between $150 billion and $200 billion if it is to survive. And even then, the pandemic is likely to reshape the industry with many airlines sadly failing and entirely new groupings emerging. It will also have huge ramifications for the way people fly once this is all over and whilst it might not seem like a high priority right now, airlines need to think about how they’ll adapt to the needs of entirely different passengers post coronavirus. It goes without saying that there will be a huge amount of trepidation about travelling for many years once a semblance of normality resumes – especially amongst those from countries that have been hardest hit by the outbreak. Face masks and maybe even gloves will become standard garb for passengers keen to minimise their risk of infection, cleaning routines between turns will be stepped up a level or two and extra screening measures to detect signs of fever could emerge as the new norm in an already stressful airport experience. Even so, these steps will not be enough to reassure many passengers of their safety on-board and their behaviour will change forever. And by extension, so too will the way in which they interact with on-board technology. While airlines will no doubt shout from the rooftops about how thoroughly they clean and disinfect tray tables, in-flight entertainment (IFE) screens and head rests pre- and post-flight in this brave new world, it is not hard to imagine passengers adopting a cocoon-like state during their journey, fearful of what, and who, they might come into contact with. This could very well entail reduced interaction with seatback screens and passenger control units (PCUs), with a possible knock-on effect for ancillary revenue generation through these systems. Expect IFE vendors to ratchet up the wellness angle another notch and mimic seat manufacturers in announcing new, self-cleaning screens that involve the use of antimicrobial coatings. Panasonic Avionics has already moved in this direction with its nanoe air filtration system, a feature of the forthcoming NEXT platform that can extract pungent smells from the cabin and remove airborne pathogens. New user interface technologies like eye-tracking and gesture control could also have an important role to play. Thales has previously demonstrated a prototype for next generation business-class seats, which include iris-tracking to detect when passengers are looking away or when their eyes are closed. However, both technologies are clearly immature in terms of their use on-board aircraft and far from perfect replacements for the touchscreen we’ve all become accustomed to using with expert dexterity. Indeed, it could even be that hand or arm gestures from those in adjacent seats actually decreases the feeling of distance – a concept all of us are rapidly becoming familiar with. Despite growing familiarity with smart speakers in our everyday lives, it seems a stretch to imagine that voice control will soon become the de-facto IFE control mechanism. Offline voice recognition of multiple languages/accents would presumably take a fair bit of computing power, while in-flight connectivity (IFC) – if it is even installed alongside IFE – is not quite at the point where it could handle the sending and receiving of a huge amount of data packets to and from the cloud for analysis. Nor could cash-strapped airlines afford the associated bandwidth costs. And then there’s the not-so-trifling issue of how to filter out the array of always-present background cabin noise. More likely then is the use of the passenger PED as a remote control for the screen in front. Interaction with one’s own device is fraught with less “danger” and many of us already use our smartphones to control other smart devices at home. Rather than a YouTube-style PIN approach to pairing PED with seatback, a more hygienic method would surely involve the use of Bluetooth or NFC. Coronavirus or not, Bluetooth will become a standard feature of IFE to enable passengers to use their own headphones and both Safran (Zii) and Panasonic Avionics have recently introduced Bluetooth capabilities on the RAVE Ultra and eX3 and NEXT systems, respectively. NFC, meanwhile, can also be used to process payments from contactless cards and mobile wallets – a key consideration now that the spotlight is firmly on the unhygienic nature of handling cash. The use of NFC will, of course, have an important role to play as the self-service model rises to prominence. Passengers may limit their interaction with flight attendants and browse digital magazines and food and drink menus on their PEDs or on seatback screens controlled by PEDs instead of flicking through oft-touched paper versions stored in germ-harbouring seat pockets. LEVEL’s award-winning payment system, developed by Black Swan, does just this and can even save card details for simplified repeat purchases on board. One could even make the argument that coronavirus may finally succeed where IFC and later, wireless IFE (W-IFE), failed in killing off the humble seatback screen. Airlines will be under immense pressure to shed operational spend and the high up-front and on-going costs associated with embedded IFE could be too much for some to bear. How early window content (EWC) – which has helped prolong the life of this form of IFE – is eventually dealt with by Hollywood studios will have a huge bearing on how things eventually pan out. As a result of the pandemic, many of the films that recently hit the big screen or were slated to still be in theatres are instead heading straight to home entertainment release. Trolls World Tour, for example, was due to be in cinemas on April 10th but will now be available on streaming and digital services without making a theatrical debut. This begs the question, for how long will the streaming of EWC to passenger PEDs be prohibited? The myriad of W-IFE vendors currently active in the market will doubtless be following these events with a keen eye. If more airlines ultimately opt to eschew embedded IFE post coronavirus, what is the optimal way to consume W-IFE? Right now, many systems are installed on aircraft where there is no in-seat power, which is mind-boggling given that the two technologies are inextricably linked. No power? No IFE! And even where in-seat power is present, consuming content on a PED whilst charging the device can be uncomfortable for passengers and becomes more difficult during mealtimes when the tray table is in use. Astronics and SmartTray have sought to provide an answer to this “hold and power” question by developing a dock style wireless charging hinge mechanism integrated into the back of the tray table. Could the next step involve the use of an inductive surface above the meal tray and some sort of PED-sized “pocket” to prevent devices falling to the floor? While there are several other benefits of inductive charging, there are numerous problems still to be ironed out. For one, the power efficiency of inductive charging pads is currently 60-70%, compared to >90% for traditional outlets. This requires bigger, more expensive power supply units with more heat dissipation, which could nullify, to some extent, any cost savings realised from not installing seatback IFE in the first place. Additionally, wireless charging takes longer, which may be of more concern on shorter journeys where W-IFE is more likely to be installed. Heightened hygiene and sanitation concerns could, conceivably, impact on newer forms of IFE too. Portable solutions have witnessed phenomenal growth in recent years but their very nature means they are frequently touched by cabin crew, ground handlers, catering and cleaning partners. New “zero touch” portable units that can be plugged into the on-board power supply are not taken on and off the aircraft with anywhere near the same degree of regularity and could be in increased demand going forwards. There are many unknowns at this still early stage of the outbreak and we really ought to re-iterate that medical experts believe the risk of catching a virus on a flight to be incredibly small. However, it is important for airlines and their suppliers to start looking forward and planning ahead in these unprecedented times. To this end, Valour Consultancy will continue to share unbiased insight and analysis on key trends relating to IFEC and cabin technology and our reports will be as comprehensive as they’ve always been. If you have any questions or queries about our research or want to reach out for a quick chat to brainstorm ideas, our door is always open. Stay safe and healthy! Valour Consultancy [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

The Battle for Business Jet Connectivity Supremacy

2019 was an exciting year in terms of new in-flight connectivity options for the business aviation market and in this article, we ponder whether the increased number of players each now offering a plethora of solutions can really be sustained longer term.

Historically, provision of wholesale cabin connectivity services for VIP and business aircraft has been dominated by four companies: Gogo, Viasat, Inmarsat and Iridium. Gogo now counts some 5,500 business aircraft on its air-to-ground (ATG) network, while Viasat lays claim to more than 1,100 cumulative shipments of its Ku-band system over the last decade. On the L-band side, Inmarsat and Iridium account for the bulk of the market and have done for some time. The former has built an enviable base of almost 4,000 aircraft that rely on its hugely-successful SwiftBroadband (SBB) service and over 600 using the Jet ConneX (JX) Ka-band solution. And with 10,000 aircraft installed with its services today, the latter estimates there’s a 90% chance a business jet will be using its voice services to power in-flight phone operations.

All this could be about to change, however. Over the last couple of years, a clutch of new entrants has emerged, presumably attracted by the higher margins on offer compared with the commercial aviation market. Global Eagle and Panasonic Avionics, for example, announced in 2015, their intent to target the bizliner and bizjet markets, respectively. While Global Eagle still harbours an ambition to pursue opportunities in the VVIP space through its ultra-high end PRIVA brand, Panasonic has stepped back and is concentrating solely on its role in IDAIR, a joint-venture with Lufthansa Technik.

Panasonic’s place in partnership with Astronics and Satcom Direct has since been taken by Intelsat and the trio launched FlexExec in October 2018. Installs have been temporarily suspended after the loss of the Intelsat-29e satellite, although expectations are that the service will re-launch in the early part of 2020. Until then, SES and Collins Aerospace will doubtless be looking to make hay with their new, rival Ku-band offering, LuxStream. Further down the line, OneWeb has vowed to revolutionise the connectivity market with a low-latency solution available for fitment on the lightest of bizjets that it plans to have available in the 2021/2022 timeframe.

Away from satellite-based connectivity, SmartSky Networks is in the final stages of completing its ATG network with entry-into-service and full CONUS coverage slated for 2020. Hardware is already installed on several business aircraft, including Embraer ERJs for launch customer, JSX. Rival, Gogo, as is the case with the other aforementioned players currently dominant, is not content to rest on its laurels and plans to launch an upgraded 5G ATG network the following year. Speculation persists that Gogo is also working with Gilat for its Ku-band tail-mount antenna. If true, such a solution would pit the company against Intelsat, SES and Viasat and allow it to address those business jets that travel internationally and that aren’t candidates for its bulkier fuselage mount 2Ku antenna.

Viasat hasn’t given up on its legacy Ku-band network and this year revealed new “Ku Advanced” packages with increased speeds of up to 10 Mbps and an easy migration path to its newer Ka-band system through use of existing aircraft wiring. Ka-band, of course, being a focus of Inmarsat, too. Despite its considerable early lead in this arena, the company continues to add capacity to the Global Xpress (GX) constellation. Inmarsat also has its eyes on supporting shorter intra-European flights having previously announced that the European Aviation Network (EAN) would be available for business aviation in “early 2019”, although timelines would appear to have slipped.

Last but by no means least is Iridium, which is seeking to tap into the increasing demand for backup communications systems with the recently-launched Certus solution. Due to its compact nature, Certus is also expected to find a place as a primary connectivity system on smaller aircraft for “lite connectivity” applications like in-flight messaging. As well as converting its existing customer base to Certus, Iridium will set its sights on capturing market share from L-band counterpart, Inmarsat.

But what’s so appealing about the bizav market that all these players with their many offerings are so intent on vying for a slice of the pie? As mentioned, margins in business aviation relative to air transport are much higher and while there is, surprisingly, a degree of price sensitivity around up-front equipment costs and on-going airtime fees, there is a willingness to pay for a good quality and reliable connectivity experience. Indeed, during the course of the research for our soon to publish study on the adoption of connectivity in this market, a common theme among interviewees was that non-functioning cabin connectivity is often cause to keep an aircraft on the ground. And it’s this level of heightened expectation that could make or break the prospects of those less familiar with having to provide a white glove service.

Simply put, business aviation is a very high touch market and connectivity providers need to cater to the specific demands of those operating no more than a handful of aircraft. A connectivity service needs to tie into the overall theme of making each aircraft or fleet of aircraft unique – something demonstrated by the fact interiors are often completely custom-crafted to match the exacting tastes of owners. Commercial aviation, on the other hand, is a higher volume market where low margin off-the-shelf products (premium cabin seats aside) are the order of the day. And as far as connectivity business models are concerned, airlines and their service providers have frankly struggled for years to make the paid-for approach work. For this reason, the likes of Intelsat and SES have been wise to partner with well-respected industry stalwarts like Satcom Direct and Collins Aerospace.

Though it’s impossible to say who will thrive and who might fall by the wayside in the battle for supremacy, it’s fair to say that we can most probably expect some level of consolidation in the market in the mid- to longer-term. We must remember that there is only a limited number of business aircraft that are viable candidates for many of the services being proposed. For fuselage mount solutions, there are around 500 bizliners that are large enough to accommodate large, bulky radomes. There are currently circa 6,500 large cabin jets and these – plus an extra 2,500 that are set to be added to the fleet over the next ten years – will be the prime target given that most can take a bullet-like tail radome but are not yet fitted with high-bandwidth Ku- or Ka-band connectivity. Beyond this, most of the remaining 16,000 super-midsize, midsize, light and very light business jets and a similar number of turboprops are only really suited to much less invasive ATG and L-band terminals.

A game changer will be the maturity of flat panel antenna technology, which has the potential to open up the total addressable market for high capacity satellite-based connectivity to much smaller airframes. A whole host of companies are currently working on solutions that aim to do just this but industry consensus is that we’re still several years away from market-ready products that overcome current challenges around power consumption, heat dissipation and cost. That being said, there will always be a significant chunk of smaller aircraft that never leave CONUS or Europe and are arguably most suited to an ATG solution. In this regard, the bases look well covered by Gogo, SmartSky and Inmarsat.

With all this in mind, it seems like a stretch to imagine that the bizav market can support so many different solutions. Those with ambitions to stay relevant in the long term need to ensure that they are best in class and not pursue an unwinnable race to the bottom on price, especially if it comes at the expense of a good quality experience. Anything less simply won’t be tolerated.

The competitive environment, market trends and the likely future adoption of connectivity in this space is explored in great depth in Valour Consultancy’s forthcoming report entitled “The Market for IFEC and CMS Systems on VVIP and Business Aircraftdue to publish in Q1 2020.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="5197|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="center" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]https://valourconsultancy.com/wp-content/uploads/2020/01/airplane-4702807_1280.jpg[/fusion_imageframe][fusion_separator style_type="none" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text columns="" column_min_width="" column_spacing="" rule_style="default" rule_size="" rule_color="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""] 2019 was an exciting year in terms of new in-flight connectivity options for the business aviation market and in this article, we ponder whether the increased number of players each now offering a plethora of solutions can really be sustained longer term. Historically, provision of wholesale cabin connectivity services for VIP and business aircraft has been dominated by four companies: Gogo, Viasat, Inmarsat and Iridium. Gogo now counts some 5,500 business aircraft on its air-to-ground (ATG) network, while Viasat lays claim to more than 1,100 cumulative shipments of its Ku-band system over the last decade. On the L-band side, Inmarsat and Iridium account for the bulk of the market and have done for some time. The former has built an enviable base of almost 4,000 aircraft that rely on its hugely-successful SwiftBroadband (SBB) service and over 600 using the Jet ConneX (JX) Ka-band solution. And with 10,000 aircraft installed with its services today, the latter estimates there's a 90% chance a business jet will be using its voice services to power in-flight phone operations. All this could be about to change, however. Over the last couple of years, a clutch of new entrants has emerged, presumably attracted by the higher margins on offer compared with the commercial aviation market. Global Eagle and Panasonic Avionics, for example, announced in 2015, their intent to target the bizliner and bizjet markets, respectively. While Global Eagle still harbours an ambition to pursue opportunities in the VVIP space through its ultra-high end PRIVA brand, Panasonic has stepped back and is concentrating solely on its role in IDAIR, a joint-venture with Lufthansa Technik. Panasonic’s place in partnership with Astronics and Satcom Direct has since been taken by Intelsat and the trio launched FlexExec in October 2018. Installs have been temporarily suspended after the loss of the Intelsat-29e satellite, although expectations are that the service will re-launch in the early part of 2020. Until then, SES and Collins Aerospace will doubtless be looking to make hay with their new, rival Ku-band offering, LuxStream. Further down the line, OneWeb has vowed to revolutionise the connectivity market with a low-latency solution available for fitment on the lightest of bizjets that it plans to have available in the 2021/2022 timeframe. Away from satellite-based connectivity, SmartSky Networks is in the final stages of completing its ATG network with entry-into-service and full CONUS coverage slated for 2020. Hardware is already installed on several business aircraft, including Embraer ERJs for launch customer, JSX. Rival, Gogo, as is the case with the other aforementioned players currently dominant, is not content to rest on its laurels and plans to launch an upgraded 5G ATG network the following year. Speculation persists that Gogo is also working with Gilat for its Ku-band tail-mount antenna. If true, such a solution would pit the company against Intelsat, SES and Viasat and allow it to address those business jets that travel internationally and that aren’t candidates for its bulkier fuselage mount 2Ku antenna. Viasat hasn’t given up on its legacy Ku-band network and this year revealed new “Ku Advanced” packages with increased speeds of up to 10 Mbps and an easy migration path to its newer Ka-band system through use of existing aircraft wiring. Ka-band, of course, being a focus of Inmarsat, too. Despite its considerable early lead in this arena, the company continues to add capacity to the Global Xpress (GX) constellation. Inmarsat also has its eyes on supporting shorter intra-European flights having previously announced that the European Aviation Network (EAN) would be available for business aviation in “early 2019”, although timelines would appear to have slipped. Last but by no means least is Iridium, which is seeking to tap into the increasing demand for backup communications systems with the recently-launched Certus solution. Due to its compact nature, Certus is also expected to find a place as a primary connectivity system on smaller aircraft for “lite connectivity” applications like in-flight messaging. As well as converting its existing customer base to Certus, Iridium will set its sights on capturing market share from L-band counterpart, Inmarsat. But what’s so appealing about the bizav market that all these players with their many offerings are so intent on vying for a slice of the pie? As mentioned, margins in business aviation relative to air transport are much higher and while there is, surprisingly, a degree of price sensitivity around up-front equipment costs and on-going airtime fees, there is a willingness to pay for a good quality and reliable connectivity experience. Indeed, during the course of the research for our soon to publish study on the adoption of connectivity in this market, a common theme among interviewees was that non-functioning cabin connectivity is often cause to keep an aircraft on the ground. And it’s this level of heightened expectation that could make or break the prospects of those less familiar with having to provide a white glove service. Simply put, business aviation is a very high touch market and connectivity providers need to cater to the specific demands of those operating no more than a handful of aircraft. A connectivity service needs to tie into the overall theme of making each aircraft or fleet of aircraft unique – something demonstrated by the fact interiors are often completely custom-crafted to match the exacting tastes of owners. Commercial aviation, on the other hand, is a higher volume market where low margin off-the-shelf products (premium cabin seats aside) are the order of the day. And as far as connectivity business models are concerned, airlines and their service providers have frankly struggled for years to make the paid-for approach work. For this reason, the likes of Intelsat and SES have been wise to partner with well-respected industry stalwarts like Satcom Direct and Collins Aerospace. Though it’s impossible to say who will thrive and who might fall by the wayside in the battle for supremacy, it’s fair to say that we can most probably expect some level of consolidation in the market in the mid- to longer-term. We must remember that there is only a limited number of business aircraft that are viable candidates for many of the services being proposed. For fuselage mount solutions, there are around 500 bizliners that are large enough to accommodate large, bulky radomes. There are currently circa 6,500 large cabin jets and these – plus an extra 2,500 that are set to be added to the fleet over the next ten years – will be the prime target given that most can take a bullet-like tail radome but are not yet fitted with high-bandwidth Ku- or Ka-band connectivity. Beyond this, most of the remaining 16,000 super-midsize, midsize, light and very light business jets and a similar number of turboprops are only really suited to much less invasive ATG and L-band terminals. A game changer will be the maturity of flat panel antenna technology, which has the potential to open up the total addressable market for high capacity satellite-based connectivity to much smaller airframes. A whole host of companies are currently working on solutions that aim to do just this but industry consensus is that we’re still several years away from market-ready products that overcome current challenges around power consumption, heat dissipation and cost. That being said, there will always be a significant chunk of smaller aircraft that never leave CONUS or Europe and are arguably most suited to an ATG solution. In this regard, the bases look well covered by Gogo, SmartSky and Inmarsat. With all this in mind, it seems like a stretch to imagine that the bizav market can support so many different solutions. Those with ambitions to stay relevant in the long term need to ensure that they are best in class and not pursue an unwinnable race to the bottom on price, especially if it comes at the expense of a good quality experience. Anything less simply won’t be tolerated. The competitive environment, market trends and the likely future adoption of connectivity in this space is explored in great depth in Valour Consultancy’s forthcoming report entitled “The Market for IFEC and CMS Systems on VVIP and Business Aircraftdue to publish in Q1 2020. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

How Airlines are Catering to Millennials

Millennials (also known as Generation Y) are a demographic cohort referred to by some as the “Me, Me, Me Generation” – lazy, constantly seeking feedback and prone to jumping from job to job. Others see a group of liberal and upbeat people brimming with confidence and self-expression, who are most receptive to new ideas and ways of living. Whichever side of the fence you sit on, one undeniable trait of millennials is their enormous purchasing power.

For this reason, millennials are one of the most talked about and disruptive generations for businesses globally. Companies, some of which have been household names for generations, have had to fundamentally shift their company culture, redesign products and services, and adopt new, fluid sales channels to resonate with this increasingly important group. Airlines are no exception.

Take Joon, Air France’s new low-cost subsidiary, as an example. The airline launched last year and promises to offer “a global travel experience” as opposed to just a flight and a fare. Part of this experience, somewhat bizarrely, involves a troupe of flight attendants decked out in resplendent white trainers, blazers with rolled up sleeves, polo shirts and ankle-length trousers. However, the “experience” element of the new brand goes a little deeper than a chic uniform. All-too-aware that millennials have grown up with an unmatched presence of technology in their lives, Joon has crafted its in-flight entertainment and connectivity (IFEC) offering accordingly.

First, all seats are equipped with USB ports to allow in-flight charging of personal electronic devices (PEDs). While this is by no means unique, it does point to an understanding that in-flight Internet and wireless content streaming – both of which are being offered by Joon – go hand-in-hand with in-seat power. After all, who boards a plane with a smartphone or tablet that is fully charged? Millennials, who are the likeliest of all to have been glued to their phone on the way to the airport, at the airport, and in the departure lounge, cannot be expected to interact with on-board connectivity if their pocket friends are low on juice! Unfortunately, wireless in-flight entertainment (W-IFE) and in-flight connectivity (IFC) are often deployed without any means to charge the devices that would be used to access these services.

Level, the low-cost arm of the International Airlines Group (IAG), has also put technology at the forefront of its marketing strategy. Its new on-board payment solution, Pair and Play, allows passengers to pay for food, drinks, Wi-Fi, amenity kits and duty-free goods by pairing their mobile devices to the seatback in-flight entertainment (IFE) system. According to Level, its passengers are largely millennials flying long-haul for the first time and being able to pay from their own device is a way for them to have more control of their own experience.

The word “experience” always features prominently in any marketing spiel explaining an airline’s approach to building rapport with millennials. The theory being that millennials, more so than any other demographic, are driven by an experience and being able to share that experience in the moment on social media. And this, in turn, drives greater recognition of the brand among the target audience and with it, customer loyalty and increased revenue.

Delta Air Lines has noticed younger consumers tend to prefer experiences rather than tactile goods, although it favours the term “Emerging High-Value Customers” (eHVCs) over “millennials”. The Georgia-based carrier sees eHVCs as being much more likely to purchase premium products that will enhance their travel experience and has embarked upon a strategy to attract these high-yield future consumers at an early stage. This is why it has placed so much emphasis on the provision of IFC (more than 1,000 planes are now equipped; many with Gogo’s high-speed 2Ku offering) as a way to take business from competitors who offer slow, unreliable Wi-Fi, or no Wi-Fi at all.

JetBlue Airways would doubtless agree about the importance of good-quality in-flight Internet. Its awarded-winning Fly-Fi service has proven extremely popular and has been credited with boosting the airline’s Net Promoter Score, which is a loyalty metric that measures a customer’s willingness to not only return for another purchase, but also make a recommendation to their family, friends or colleagues. Of course, JetBlue offers customers Fly-Fi for free, and very few airlines do that right now for a variety of reasons. Nonetheless, the tech-savvy millennial is used to ubiquitous and free connectivity on the ground, so why should the aeroplane be any different? JetBlue has sought to offset the considerable costs involved with providing complementary IFC – its sponsorship with Amazon brings in valuable revenues and helps underpin the business model.

We are also seeing airlines having to adapt to the way in which millennials engage with content. American Airlines’ decision to forego seatback screens in favour of W-IFE on its Boeing 737 MAX aircraft in mid-2017 raised questions from some about the future of traditional embedded systems. However, many carriers are installing W-IFE alongside seatback screens, especially on their long-haul aircraft. Philippine Airlines, for example, re-introduced embedded IFE systems onto its A330 aircraft in 2017, alongside ONAIR play, its W-IFE solution. One reason for this trend is to allow for ‘second-screening’, a habit most prevalent amongst millennials where people commonly use their PEDs while watching another screen.

Data science company, Black Swan Data, helped the aforementioned Level take second screening a stage further by enabling pairing of a PED directly to the seat-back system via Pair and Play. JetBlue, meanwhile, is using NFC as a binding technology on its newly-restyled A320s. This allows passengers to use their own devices as remote controls/gaming controllers, port Android-based applications and also, stream content to seatback displays.

IFE content is also changing to meet the needs of a younger audience rather than the baby-boomer generation as has been the case in years gone by. On wide-body aircraft, which typically fly routes long enough for people to watch a Hollywood movie, a growing proportion of the video content available is shorter-form with drama series, documentaries and long-running comedy shows becoming more and more popular. Medieval fantasy epic, Game of Thrones, political dramas like House of Cards, and zombie-apocalyptic horror, The Walking Dead, have all gained cult-like status in recent years and represent examples of the content today’s connected generation are enjoying on the ground. In addition, some companies have begun aggregating YouTube and Vimeo shorter snackable video content and offering customised TV channels to airlines. With this demographic expecting connectivity in the air to be more like it is on the ground, it makes sense that the content they view in the air should be of a similar nature to the content they view in their homes.

Next-generation IFEC systems are being architected so that passengers can create and sign into an IFEC account using their social media credentials, and with permission, these systems can learn even more about passengers from their online profile(s) or even the types of emails they send and receive. As a result, it becomes possible to present ads and content that are more compelling, rather than the same thing across the entire cabin. And this is what the millennial passenger expects – most actually embrace recommendation engines from the likes of Amazon and Netflix.

This familiarity with Amazon and Netflix also has an impact on the way in which GUIs are being designed. A good UI should be pretty, intuitive, snappy and put as little space as possible between the passenger and what he or she wants to watch. Delta Air Lines and Turkish Airlines have undoubtedly taken cues from the VOD giants with their recent GUI redesigns. The former’s new look IFE aims to bring important content to the highest levels for ease of access and feel “more like interacting with an iPhone.” The latter’s is the result of a study conducted by professional usability and user experience laboratories. One of the major updates is category filtering for movies or ratings of TV shows and movies from well-known database, Internet Movie Database (IMDb).

And there is much more to come. Virtual Reality (VR) is experiencing a second coming and is a technology many airlines are looking into today. Intriguingly, VR plays to the perceived traits of millennials as it allows passengers to escape the confines of the cabin and therefore the awkward conversation with a stranger, or family member, millennials supposedly prefer to avoid. Joon has committed to deploying SkyLights’ second-generation cinematic VR headset, AlloSky, this year.

In the coming years, we can expect to see more airlines redefine their brand, processes and service to capture the loyalty of millennials. This will become increasingly important and evident as the influence of millennials on economies across the world strengthens. One need only look to the much-changed retail sector and the disruption caused by Amazon to see that the adoption of technology will be fundamental to airlines delivering a passenger experience worth sharing and coming back for.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="4920|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="center" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]http://217.199.187.200/valourconsultancy.com/wp-content/uploads/2018/02/Millennials-1024x530-1.jpg[/fusion_imageframe][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text] Millennials (also known as Generation Y) are a demographic cohort referred to by some as the “Me, Me, Me Generation” – lazy, constantly seeking feedback and prone to jumping from job to job. Others see a group of liberal and upbeat people brimming with confidence and self-expression, who are most receptive to new ideas and ways of living. Whichever side of the fence you sit on, one undeniable trait of millennials is their enormous purchasing power. For this reason, millennials are one of the most talked about and disruptive generations for businesses globally. Companies, some of which have been household names for generations, have had to fundamentally shift their company culture, redesign products and services, and adopt new, fluid sales channels to resonate with this increasingly important group. Airlines are no exception. Take Joon, Air France’s new low-cost subsidiary, as an example. The airline launched last year and promises to offer “a global travel experience” as opposed to just a flight and a fare. Part of this experience, somewhat bizarrely, involves a troupe of flight attendants decked out in resplendent white trainers, blazers with rolled up sleeves, polo shirts and ankle-length trousers. However, the “experience” element of the new brand goes a little deeper than a chic uniform. All-too-aware that millennials have grown up with an unmatched presence of technology in their lives, Joon has crafted its in-flight entertainment and connectivity (IFEC) offering accordingly. First, all seats are equipped with USB ports to allow in-flight charging of personal electronic devices (PEDs). While this is by no means unique, it does point to an understanding that in-flight Internet and wireless content streaming – both of which are being offered by Joon – go hand-in-hand with in-seat power. After all, who boards a plane with a smartphone or tablet that is fully charged? Millennials, who are the likeliest of all to have been glued to their phone on the way to the airport, at the airport, and in the departure lounge, cannot be expected to interact with on-board connectivity if their pocket friends are low on juice! Unfortunately, wireless in-flight entertainment (W-IFE) and in-flight connectivity (IFC) are often deployed without any means to charge the devices that would be used to access these services. Level, the low-cost arm of the International Airlines Group (IAG), has also put technology at the forefront of its marketing strategy. Its new on-board payment solution, Pair and Play, allows passengers to pay for food, drinks, Wi-Fi, amenity kits and duty-free goods by pairing their mobile devices to the seatback in-flight entertainment (IFE) system. According to Level, its passengers are largely millennials flying long-haul for the first time and being able to pay from their own device is a way for them to have more control of their own experience. The word “experience” always features prominently in any marketing spiel explaining an airline’s approach to building rapport with millennials. The theory being that millennials, more so than any other demographic, are driven by an experience and being able to share that experience in the moment on social media. And this, in turn, drives greater recognition of the brand among the target audience and with it, customer loyalty and increased revenue. Delta Air Lines has noticed younger consumers tend to prefer experiences rather than tactile goods, although it favours the term “Emerging High-Value Customers” (eHVCs) over “millennials”. The Georgia-based carrier sees eHVCs as being much more likely to purchase premium products that will enhance their travel experience and has embarked upon a strategy to attract these high-yield future consumers at an early stage. This is why it has placed so much emphasis on the provision of IFC (more than 1,000 planes are now equipped; many with Gogo’s high-speed 2Ku offering) as a way to take business from competitors who offer slow, unreliable Wi-Fi, or no Wi-Fi at all. JetBlue Airways would doubtless agree about the importance of good-quality in-flight Internet. Its awarded-winning Fly-Fi service has proven extremely popular and has been credited with boosting the airline’s Net Promoter Score, which is a loyalty metric that measures a customer’s willingness to not only return for another purchase, but also make a recommendation to their family, friends or colleagues. Of course, JetBlue offers customers Fly-Fi for free, and very few airlines do that right now for a variety of reasons. Nonetheless, the tech-savvy millennial is used to ubiquitous and free connectivity on the ground, so why should the aeroplane be any different? JetBlue has sought to offset the considerable costs involved with providing complementary IFC – its sponsorship with Amazon brings in valuable revenues and helps underpin the business model. We are also seeing airlines having to adapt to the way in which millennials engage with content. American Airlines’ decision to forego seatback screens in favour of W-IFE on its Boeing 737 MAX aircraft in mid-2017 raised questions from some about the future of traditional embedded systems. However, many carriers are installing W-IFE alongside seatback screens, especially on their long-haul aircraft. Philippine Airlines, for example, re-introduced embedded IFE systems onto its A330 aircraft in 2017, alongside ONAIR play, its W-IFE solution. One reason for this trend is to allow for ‘second-screening’, a habit most prevalent amongst millennials where people commonly use their PEDs while watching another screen. Data science company, Black Swan Data, helped the aforementioned Level take second screening a stage further by enabling pairing of a PED directly to the seat-back system via Pair and Play. JetBlue, meanwhile, is using NFC as a binding technology on its newly-restyled A320s. This allows passengers to use their own devices as remote controls/gaming controllers, port Android-based applications and also, stream content to seatback displays. IFE content is also changing to meet the needs of a younger audience rather than the baby-boomer generation as has been the case in years gone by. On wide-body aircraft, which typically fly routes long enough for people to watch a Hollywood movie, a growing proportion of the video content available is shorter-form with drama series, documentaries and long-running comedy shows becoming more and more popular. Medieval fantasy epic, Game of Thrones, political dramas like House of Cards, and zombie-apocalyptic horror, The Walking Dead, have all gained cult-like status in recent years and represent examples of the content today’s connected generation are enjoying on the ground. In addition, some companies have begun aggregating YouTube and Vimeo shorter snackable video content and offering customised TV channels to airlines. With this demographic expecting connectivity in the air to be more like it is on the ground, it makes sense that the content they view in the air should be of a similar nature to the content they view in their homes. Next-generation IFEC systems are being architected so that passengers can create and sign into an IFEC account using their social media credentials, and with permission, these systems can learn even more about passengers from their online profile(s) or even the types of emails they send and receive. As a result, it becomes possible to present ads and content that are more compelling, rather than the same thing across the entire cabin. And this is what the millennial passenger expects – most actually embrace recommendation engines from the likes of Amazon and Netflix. This familiarity with Amazon and Netflix also has an impact on the way in which GUIs are being designed. A good UI should be pretty, intuitive, snappy and put as little space as possible between the passenger and what he or she wants to watch. Delta Air Lines and Turkish Airlines have undoubtedly taken cues from the VOD giants with their recent GUI redesigns. The former’s new look IFE aims to bring important content to the highest levels for ease of access and feel “more like interacting with an iPhone.” The latter’s is the result of a study conducted by professional usability and user experience laboratories. One of the major updates is category filtering for movies or ratings of TV shows and movies from well-known database, Internet Movie Database (IMDb). And there is much more to come. Virtual Reality (VR) is experiencing a second coming and is a technology many airlines are looking into today. Intriguingly, VR plays to the perceived traits of millennials as it allows passengers to escape the confines of the cabin and therefore the awkward conversation with a stranger, or family member, millennials supposedly prefer to avoid. Joon has committed to deploying SkyLights’ second-generation cinematic VR headset, AlloSky, this year. In the coming years, we can expect to see more airlines redefine their brand, processes and service to capture the loyalty of millennials. This will become increasingly important and evident as the influence of millennials on economies across the world strengthens. One need only look to the much-changed retail sector and the disruption caused by Amazon to see that the adoption of technology will be fundamental to airlines delivering a passenger experience worth sharing and coming back for. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

The Three C’s of (In-Flight) Connectivity – Coverage, Capacity and Consistency

A poor experience of anything in life is likely to make someone think twice about whether they want to try it again and the same is true of in-flight connectivity (IFC). People cannot be expected to pay twice for something that does not work well and in the social media age that we now live in, negative experiences can be quickly voiced and made available for the world to see. As Honeywell Aerospace’s passenger connectivity surveys have continually shown, the majority of people to have tried in-flight Wi-Fi have been left frustrated by the experience. Many expressed disappointment with inconsistent and/or slow service.

Unfortunately, I too can be counted amongst those who’ve been left dissatisfied by IFC. Though I’d liked to have relaxed and made a dent in the sizeable collection of content on Emirates’ impressive “ICE” in-flight entertainment (IFE) system, my recent flight from Birmingham to Dubai for the Aircraft Interiors Middle East (AIME) event represented the perfect opportunity to catch up on a backlog of emails. Or so I thought. Sadly, after consuming the initial complimentary 10 megabytes, my connection cut out somewhere over Romania. At first, I thought there had been a momentary blip as one satellite handed over to another but the network remained down for the remainder of the flight. As it turned out, I was still able to compose several emails that eventually made their way to their intended recipients upon reaching the sanctity of my hotel room whereupon Wi-Fi was once again available.

Panasonic Avionics, provider of the underlying technology on said flight, has since informed me that its mission control center reported two network disruptions during my journey and that its team is currently investigating the causes. At the time of writing, no further update had been provided. In the interests of balance, I should note that the system worked perfectly on the return leg, although I was unable to make best use of it having crashed out shortly after take-off – an ill-timed beverage prior to boarding resulted in a mad dash up and down escalators and on and off trains connecting various parts of Dubai International Airport.

But I digress and though I do have an appreciation of the technological feat involved with maintaining connectivity at 35,000 feet on a metal tube travelling 500 miles per hour, I do wonder if more could be done to manage passenger expectations when they’re on board and things don’t function as they should. While I didn’t ask any of the flight attendants why the network had seemingly gone down, it did occur to me that passengers might appreciate it if they were made aware of any disruptions and told if and when connectivity may resume (that’s assuming they’re told of the availability of connectivity in the first place which, surprisingly, still isn’t always the case). I might be wrong but surely a good old-fashioned public announcement would suffice or perhaps a banner message could be flashed across the seatback screen with words to the effect of “we’re sorry, our IFC system is momentarily down – we’re doing our best to get you back up and running as soon as possible”.

Sure, people are demanding faster and faster connections spurred by a desire to consume content in the air as they do on the ground but they don’t care a jot about the underlying technology and whether they are connecting to an L-, Ku- or Ka-band satellite, or to cellular towers on the ground, or how many megabits per second of throughput a solution can support. Passengers just want things to work and for them to work well. In-flight Wi-Fi that does not work the same in all regions and all conditions is arguably more frustrating than offering no in-flight Wi-Fi at all.

Quality of service, however it is delivered, is key as this excellent blog from iDirect’s Dennis Sutherland explains. Throughput is just one consideration. Rockwell Collins’ VP Sales & Marketing, Jeffrey Sales, sums this up well in this equally excellent article from Runway Girl Network:

“If you have great throughput and okay latency but every time that you switch beams there is a 2-minute wait to shift, or I lose connection you are going to be frustrated. If there is not enough spectrum to go around and therefore the third person on the airplane that tries to log on can’t surf, well that third person is disappointed. It is truly about quality of service. It is about consistency. It is about coverage. It is about capacity. But it is an algorithm of all three. It is not any one thing.”

Airlines looking to make an IFC investment decision must therefore ask service providers about road maps and product lifecycles rather than individual offerings and service levels today or in the short-term. This also involves thinking more holistically about connectivity and how it might be scaled not just to meet increased passenger demand but also to achieve operational efficiencies – all over a timeframe of a decade or more. Simply put, adoption of IFC should not be a case of “we need to move because our competitors are”. It should be about investing in a solution that will offer passengers a great service all throughout the flight and on every flight as well as ensuring that the aircraft is a truly connected node in the operation wherever in the world it happens to be.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="5014|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="center" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]http://217.199.187.200/valourconsultancy.com/wp-content/uploads/2017/02/computer-frustrations-1.png[/fusion_imageframe][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text] A poor experience of anything in life is likely to make someone think twice about whether they want to try it again and the same is true of in-flight connectivity (IFC). People cannot be expected to pay twice for something that does not work well and in the social media age that we now live in, negative experiences can be quickly voiced and made available for the world to see. As Honeywell Aerospace’s passenger connectivity surveys have continually shown, the majority of people to have tried in-flight Wi-Fi have been left frustrated by the experience. Many expressed disappointment with inconsistent and/or slow service. Unfortunately, I too can be counted amongst those who’ve been left dissatisfied by IFC. Though I’d liked to have relaxed and made a dent in the sizeable collection of content on Emirates’ impressive “ICE” in-flight entertainment (IFE) system, my recent flight from Birmingham to Dubai for the Aircraft Interiors Middle East (AIME) event represented the perfect opportunity to catch up on a backlog of emails. Or so I thought. Sadly, after consuming the initial complimentary 10 megabytes, my connection cut out somewhere over Romania. At first, I thought there had been a momentary blip as one satellite handed over to another but the network remained down for the remainder of the flight. As it turned out, I was still able to compose several emails that eventually made their way to their intended recipients upon reaching the sanctity of my hotel room whereupon Wi-Fi was once again available. Panasonic Avionics, provider of the underlying technology on said flight, has since informed me that its mission control center reported two network disruptions during my journey and that its team is currently investigating the causes. At the time of writing, no further update had been provided. In the interests of balance, I should note that the system worked perfectly on the return leg, although I was unable to make best use of it having crashed out shortly after take-off – an ill-timed beverage prior to boarding resulted in a mad dash up and down escalators and on and off trains connecting various parts of Dubai International Airport. But I digress and though I do have an appreciation of the technological feat involved with maintaining connectivity at 35,000 feet on a metal tube travelling 500 miles per hour, I do wonder if more could be done to manage passenger expectations when they’re on board and things don’t function as they should. While I didn’t ask any of the flight attendants why the network had seemingly gone down, it did occur to me that passengers might appreciate it if they were made aware of any disruptions and told if and when connectivity may resume (that’s assuming they’re told of the availability of connectivity in the first place which, surprisingly, still isn’t always the case). I might be wrong but surely a good old-fashioned public announcement would suffice or perhaps a banner message could be flashed across the seatback screen with words to the effect of “we’re sorry, our IFC system is momentarily down – we’re doing our best to get you back up and running as soon as possible”. Sure, people are demanding faster and faster connections spurred by a desire to consume content in the air as they do on the ground but they don’t care a jot about the underlying technology and whether they are connecting to an L-, Ku- or Ka-band satellite, or to cellular towers on the ground, or how many megabits per second of throughput a solution can support. Passengers just want things to work and for them to work well. In-flight Wi-Fi that does not work the same in all regions and all conditions is arguably more frustrating than offering no in-flight Wi-Fi at all. Quality of service, however it is delivered, is key as this excellent blog from iDirect’s Dennis Sutherland explains. Throughput is just one consideration. Rockwell Collins’ VP Sales & Marketing, Jeffrey Sales, sums this up well in this equally excellent article from Runway Girl Network:
“If you have great throughput and okay latency but every time that you switch beams there is a 2-minute wait to shift, or I lose connection you are going to be frustrated. If there is not enough spectrum to go around and therefore the third person on the airplane that tries to log on can’t surf, well that third person is disappointed. It is truly about quality of service. It is about consistency. It is about coverage. It is about capacity. But it is an algorithm of all three. It is not any one thing.”
Airlines looking to make an IFC investment decision must therefore ask service providers about road maps and product lifecycles rather than individual offerings and service levels today or in the short-term. This also involves thinking more holistically about connectivity and how it might be scaled not just to meet increased passenger demand but also to achieve operational efficiencies – all over a timeframe of a decade or more. Simply put, adoption of IFC should not be a case of “we need to move because our competitors are”. It should be about investing in a solution that will offer passengers a great service all throughout the flight and on every flight as well as ensuring that the aircraft is a truly connected node in the operation wherever in the world it happens to be. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Latin American Carriers Begin to Embrace In-Flight Connectivity

Having lived and worked in Peru for a couple of years, I try to take a keen interest in all things Latin America. This is especially so when it comes to researching the market for in-flight Internet and mobile phone services and breaking down our stats on connected aircraft by geography as I frequently do. As we remarked in our December 2014 blog post, adoption of in-flight connectivity in Latin America lags some way behind other regions. Back then, TAM Airlines (now known as LATAM Airlines Brasil following the merger of TAM and LAN) was the only carrier in the region to have deployed any type of IFC. The SITAONAIR-powered L-band cellular system installed on 31 Airbus A320 aircraft was, however, de-activated last year. Since that blog was written, activity in this part of the world has been hotting up with a couple of operators having now played their cards.

First up was Gol Linhas Aéreas Inteligentes (GOL). The Brazilian low-cost-carrier announced in June 2015 that it would be fitting Gogo’s 2Ku connectivity on all of its aircraft. The first – a Boeing 737-800 – was installed at the beginning of this month. The remaining 135 in the fleet (a mixture of 737-700s, and 737-800s) are due to be kitted out over the next year or so. And just this week, it has been announced that Avianca Brasil is to follow GOL’s lead and deploy Ku-band connectivity from Gogo rival, Global Eagle Entertainment (GEE).

Again, this deal is for fleet-wide equipage. The only difference being that Avianca Brasil operates fewer aircraft (Planespotters.net puts the number at 46 currently). The carrier does have a significant number of planes on order though, including 62 from the Airbus A320neo family. In its second quarter earnings call earlier this week, GEE confirmed it is in discussions to secure a contract for these new aircraft and that there also exists an opportunity to win the business of those operated by the larger Avianca entity headquartered in Colombia. Installations on Avianca Brasil’s in-service aircraft are slated to begin in the autumn.

So what of the other airlines in the region? LATAM has said that it has no plans to offer in-flight Internet in the near-term. At least not on its short-haul fleet, which has been retrofitted with the “RAVE Wireless” content streaming system from Zodiac Inflight Innovations (Zii). Whether that view changes in light of recent announcements remains to be seen. Aerolineas Argentinas and Boliviana De Aviacion have teamed up with Panasonic Avionics to install the eXW wireless in-flight entertainment (W-IFE) solution on select aircraft and may opt to add Internet capabilities at a later date. Other large carriers in Latin America, and I’m thinking of Copa Airlines and Azul Linhas Aéreas Brasileiras, in particular, have yet to reveal any sort of connectivity strategy, although some of the smaller ones have. Air Caraibes, for example, is set to install both W-IFE (from Display Interactive) and GX Aviation Ka-band connectivity from Thales on six new A350s currently on order.

Adopting IFC can be the difference between attracting an additional paying passenger and not. According to a recent survey carried out by Honeywell, almost three-quarters of passengers say they are ready to switch carriers to have access to a faster, more reliable Internet connection while airborne. Now that a couple of key players have made their moves, the proverbial dominoes can be expected to fall. Indeed, the building blocks are moving into place with satellite capacity in the region being continually expanded. According to GEE, EMC’s existing satellite contracts over South America were instrumental in securing the business of Avianca Brasil. And further high-capacity coverage is being added all the time: Intelsat 29e – the first of seven Intelsat EpicNG birds – launched in January and SES-10 is due to blast-off later in the year.

By 2025, Valour Consultancy expects there to be 846 aircraft in Central and South America with IFC. This is equivalent to a penetration rate of about 38 per cent at that point in time. Our new report, “The Future of In-Flight Connectivity” delves deeply into the IFC market, providing forecasts for connected aircraft by type of connectivity (Wi-Fi, cellular and a combination of the two), fitment type (retrofit and line-fit), aircraft type (narrow-body, wide-body, regional jet) and geographic region (Asia-Pacific, China, Western Europe, Central & Eastern Europe, Africa, Middle East, North America, Central & South America). Aeromexico, which is installing different technologies from Panasonic Avionics and Gogo, contributes to North America’s installed base as far as Valour Consultancy’s analysis is concerned.

In-Flight Connectivity in Latin America

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Having lived and worked in Peru for a couple of years, I try to take a keen interest in all things Latin America. This is especially so when it comes to researching the market for in-flight Internet and mobile phone services and breaking down our stats on connected aircraft by geography as I frequently do. As we remarked in our December 2014 blog post, adoption of in-flight connectivity in Latin America lags some way behind other regions. Back then, TAM Airlines (now known as LATAM Airlines Brasil following the merger of TAM and LAN) was the only carrier in the region to have deployed any type of IFC. The SITAONAIR-powered L-band cellular system installed on 31 Airbus A320 aircraft was, however, de-activated last year. Since that blog was written, activity in this part of the world has been hotting up with a couple of operators having now played their cards. First up was Gol Linhas Aéreas Inteligentes (GOL). The Brazilian low-cost-carrier announced in June 2015 that it would be fitting Gogo’s 2Ku connectivity on all of its aircraft. The first – a Boeing 737-800 – was installed at the beginning of this month. The remaining 135 in the fleet (a mixture of 737-700s, and 737-800s) are due to be kitted out over the next year or so. And just this week, it has been announced that Avianca Brasil is to follow GOL’s lead and deploy Ku-band connectivity from Gogo rival, Global Eagle Entertainment (GEE). Again, this deal is for fleet-wide equipage. The only difference being that Avianca Brasil operates fewer aircraft (Planespotters.net puts the number at 46 currently). The carrier does have a significant number of planes on order though, including 62 from the Airbus A320neo family. In its second quarter earnings call earlier this week, GEE confirmed it is in discussions to secure a contract for these new aircraft and that there also exists an opportunity to win the business of those operated by the larger Avianca entity headquartered in Colombia. Installations on Avianca Brasil’s in-service aircraft are slated to begin in the autumn. So what of the other airlines in the region? LATAM has said that it has no plans to offer in-flight Internet in the near-term. At least not on its short-haul fleet, which has been retrofitted with the “RAVE Wireless” content streaming system from Zodiac Inflight Innovations (Zii). Whether that view changes in light of recent announcements remains to be seen. Aerolineas Argentinas and Boliviana De Aviacion have teamed up with Panasonic Avionics to install the eXW wireless in-flight entertainment (W-IFE) solution on select aircraft and may opt to add Internet capabilities at a later date. Other large carriers in Latin America, and I’m thinking of Copa Airlines and Azul Linhas Aéreas Brasileiras, in particular, have yet to reveal any sort of connectivity strategy, although some of the smaller ones have. Air Caraibes, for example, is set to install both W-IFE (from Display Interactive) and GX Aviation Ka-band connectivity from Thales on six new A350s currently on order. Adopting IFC can be the difference between attracting an additional paying passenger and not. According to a recent survey carried out by Honeywell, almost three-quarters of passengers say they are ready to switch carriers to have access to a faster, more reliable Internet connection while airborne. Now that a couple of key players have made their moves, the proverbial dominoes can be expected to fall. Indeed, the building blocks are moving into place with satellite capacity in the region being continually expanded. According to GEE, EMC’s existing satellite contracts over South America were instrumental in securing the business of Avianca Brasil. And further high-capacity coverage is being added all the time: Intelsat 29e – the first of seven Intelsat EpicNG birds – launched in January and SES-10 is due to blast-off later in the year. By 2025, Valour Consultancy expects there to be 846 aircraft in Central and South America with IFC. This is equivalent to a penetration rate of about 38 per cent at that point in time. Our new report, “The Future of In-Flight Connectivity” delves deeply into the IFC market, providing forecasts for connected aircraft by type of connectivity (Wi-Fi, cellular and a combination of the two), fitment type (retrofit and line-fit), aircraft type (narrow-body, wide-body, regional jet) and geographic region (Asia-Pacific, China, Western Europe, Central & Eastern Europe, Africa, Middle East, North America, Central & South America). Aeromexico, which is installing different technologies from Panasonic Avionics and Gogo, contributes to North America’s installed base as far as Valour Consultancy’s analysis is concerned. In-Flight Connectivity in Latin America
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