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With New LCC Announcements Set to Come, Wireless IFE Remains Robust in the Face of COVID

One of the first questions we were asked once the enormity of the COVID-19 situation became apparent some seven months ago was its likely impact on the in-flight entertainment (IFE) industry. Indeed, one of the messages we received from a well-respected name in the industry back in March was that he suspected “traditional IFE would not bounce back”. At that time, it was not hard to see why. Throughout the travel continuum, there is an obvious reluctance for people to interact with touchscreens of any kind, be they installed in the seatback or situated on a kiosk in the airport check-in area. In fact, the decision has, in some cases, been taken out of the hands of passengers and airlines alike. India’s Ministry of Civil Aviation, for example, suspended the use of seatback displays as a health and safety measure to limit the spread of the virus.

Then there are the not insignificant costs associated with content acquisition and maintenance, which have already compelled financially squeezed airlines to switch off systems and in some cases, I’m sure, think twice about whether they want to install the technology in future. Additionally, seatback IFE is inextricably tied to the hugely impacted wide-body market – almost every one of these aircraft is delivered with an embedded system fitted at the factory and this has been the case for years now. To put this into perspective, a total of 76 twin-aisle aircraft (excluding freighters and so-called bizliners) were delivered by Airbus and Boeing between the start of this year and August 31st. In the same period last year, the number was 212. That’s a 64 per cent reduction in the number of aircraft that would normally make up a sizeable portion of the seatback IFE market.

Sadly, the prospects for wide-bodies in the short- to medium term don’t look all that rosy either. According to our own internal forecast, deliveries won’t return to pre-pandemic levels until around 2026. We must also consider that the attach rate for seatback IFE on narrow-bodies has been falling for a while now. There have been several recent high profile examples where carriers – particularly in North America where adoption of seatback IFE in the single aisle market has always been higher – have opted against fitting these systems on their newest aircraft. In 2019, the attach rate stood at just under 26 per cent and we expect this to fall to 13 per cent by 2030. The decline would be even more pronounced were it not for the forthcoming arrival of long range single aisle aircraft like the Airbus A321XLR (and any rival Boeing might bring out in the next few years), which will doubtless be equipped with wide-body-esque amenities.

Enter wireless IFE (W-IFE), which has exhibited remarkable growth in recent years, and which looks set to continue on this trajectory from here on in. Why? Two reasons: First, W-IFE costs a lot less than seatback IFE – an extremely important consideration in these unprecedented times. In fact, we estimate that the average cost per seat for W-IFE (both fixed and portable) was about $381 in 2019. The equivalent figure for seatback IFE was just over $6,000. And it’s getting less expensive too thanks to a frankly insane number of vendors vying for a slice of the pie and with new entrants joining the party all the time. VuLiv and GoMedia being the two most recent examples. Second, W-IFE, by its very nature, means using your own device, which is undeniably preferable to touching a screen many others have come into contact with previously. In the interests of balance, cleaning regimes have been stepped up a notch since the pandemic was declared and our expectation is that the PED will become the de-facto control device for seatback systems in future. Furthermore, hardware development has arguably reached its zenith and rapid commoditisation will ensure that the cost per seat of seatback IFE will fall hugely over the next few years. As airline balance sheets improve, its current unattractiveness will somewhat reverse.

W-IFE also provides the foundation for airlines to exit the stone age, radically transform their operations and exploit much-needed new ancillary revenue opportunities. With paper based menu cards and the in-flight magazine now a thing of the past, the “E” in “IFE” is rapidly becoming less about entertainment in the traditional sense of the word and more about maximising engagement with passengers. We need only look to Ryanair as an example. The notoriously cost-conscious LCC is set to launch a new W-IFE solution next month on 50 aircraft and a key part of the proposition is a touchless shopping experience for food, beverages and other goods and services. The platform will also support targeted and measurable advertising based initially on the passenger’s language, the origin and destination of flights and the content viewed. My spies tell me that other well-known LCCs in Europe and Asia will announce that they are launching similar solutions before the end of this year, while many airlines that have already adopted W-IFE will also enable digital buy-on-board in the very near future.

What does all this mean in numerical terms? Well, we think that 2020 will end up seeing just over 1,100 installations of W-IFE. This represents a decline of about 19 per cent year-on-year – a quite remarkable feat given the utter devastation the virus has wreaked upon the industry. In addition to those set to reveal their hands before the year is out, airlines new to the world of W-IFE that have commenced (or significantly expanded) rollouts include: Spicejet, the IAG Group and Lion Air Group. Combined, this activity will see the W-IFE installed base grow to 8,261 – up from 7,975 in 2019. The eagle-eyed amongst you will note that last year’s installed base plus this year’s expected installs does not equal the projected installed based for 2020. And that’s because there were a large number of systems deducted from the total due to aircraft retirements and de-installations. By 2030, we believe that the number of aircraft with a W-IFE system will grow to exceed 21,000.

Given the evidence before us, it would be quite easy to agree with the industry contact mentioned at the beginning of this blog and declare that seatback systems have finally entered into a terminal decline after previous reports of its death were greatly exaggerated. That is not the view we’d take, however. Airlines will increasingly move towards ensuring passengers encounter multiple transient hardware interfaces on longer journeys, each supported by cloud services and enabling a hyper-personalised lifestyle experience. The passenger PED will become the continuity and comfort display, or the companion that connects their entire journey. The IFE screen will become secondary in value and the conduit through which all manner of traditional and non-traditional content – consistent with the airlines’ brand positioning and passenger preferences – will be displayed. In short, an enabler of services. Seatback IFE is still not dead, therefore, it will just be reborn under a different guise.

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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="5583|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/2020/10/ryanair-aircraft-2-scaled-e1602592213142.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=""] One of the first questions we were asked once the enormity of the COVID-19 situation became apparent some seven months ago was its likely impact on the in-flight entertainment (IFE) industry. Indeed, one of the messages we received from a well-respected name in the industry back in March was that he suspected “traditional IFE would not bounce back”. At that time, it was not hard to see why. Throughout the travel continuum, there is an obvious reluctance for people to interact with touchscreens of any kind, be they installed in the seatback or situated on a kiosk in the airport check-in area. In fact, the decision has, in some cases, been taken out of the hands of passengers and airlines alike. India’s Ministry of Civil Aviation, for example, suspended the use of seatback displays as a health and safety measure to limit the spread of the virus. Then there are the not insignificant costs associated with content acquisition and maintenance, which have already compelled financially squeezed airlines to switch off systems and in some cases, I’m sure, think twice about whether they want to install the technology in future. Additionally, seatback IFE is inextricably tied to the hugely impacted wide-body market – almost every one of these aircraft is delivered with an embedded system fitted at the factory and this has been the case for years now. To put this into perspective, a total of 76 twin-aisle aircraft (excluding freighters and so-called bizliners) were delivered by Airbus and Boeing between the start of this year and August 31st. In the same period last year, the number was 212. That’s a 64 per cent reduction in the number of aircraft that would normally make up a sizeable portion of the seatback IFE market. Sadly, the prospects for wide-bodies in the short- to medium term don’t look all that rosy either. According to our own internal forecast, deliveries won’t return to pre-pandemic levels until around 2026. We must also consider that the attach rate for seatback IFE on narrow-bodies has been falling for a while now. There have been several recent high profile examples where carriers – particularly in North America where adoption of seatback IFE in the single aisle market has always been higher – have opted against fitting these systems on their newest aircraft. In 2019, the attach rate stood at just under 26 per cent and we expect this to fall to 13 per cent by 2030. The decline would be even more pronounced were it not for the forthcoming arrival of long range single aisle aircraft like the Airbus A321XLR (and any rival Boeing might bring out in the next few years), which will doubtless be equipped with wide-body-esque amenities. Enter wireless IFE (W-IFE), which has exhibited remarkable growth in recent years, and which looks set to continue on this trajectory from here on in. Why? Two reasons: First, W-IFE costs a lot less than seatback IFE – an extremely important consideration in these unprecedented times. In fact, we estimate that the average cost per seat for W-IFE (both fixed and portable) was about $381 in 2019. The equivalent figure for seatback IFE was just over $6,000. And it’s getting less expensive too thanks to a frankly insane number of vendors vying for a slice of the pie and with new entrants joining the party all the time. VuLiv and GoMedia being the two most recent examples. Second, W-IFE, by its very nature, means using your own device, which is undeniably preferable to touching a screen many others have come into contact with previously. In the interests of balance, cleaning regimes have been stepped up a notch since the pandemic was declared and our expectation is that the PED will become the de-facto control device for seatback systems in future. Furthermore, hardware development has arguably reached its zenith and rapid commoditisation will ensure that the cost per seat of seatback IFE will fall hugely over the next few years. As airline balance sheets improve, its current unattractiveness will somewhat reverse. W-IFE also provides the foundation for airlines to exit the stone age, radically transform their operations and exploit much-needed new ancillary revenue opportunities. With paper based menu cards and the in-flight magazine now a thing of the past, the “E” in “IFE” is rapidly becoming less about entertainment in the traditional sense of the word and more about maximising engagement with passengers. We need only look to Ryanair as an example. The notoriously cost-conscious LCC is set to launch a new W-IFE solution next month on 50 aircraft and a key part of the proposition is a touchless shopping experience for food, beverages and other goods and services. The platform will also support targeted and measurable advertising based initially on the passenger's language, the origin and destination of flights and the content viewed. My spies tell me that other well-known LCCs in Europe and Asia will announce that they are launching similar solutions before the end of this year, while many airlines that have already adopted W-IFE will also enable digital buy-on-board in the very near future. What does all this mean in numerical terms? Well, we think that 2020 will end up seeing just over 1,100 installations of W-IFE. This represents a decline of about 19 per cent year-on-year – a quite remarkable feat given the utter devastation the virus has wreaked upon the industry. In addition to those set to reveal their hands before the year is out, airlines new to the world of W-IFE that have commenced (or significantly expanded) rollouts include: Spicejet, the IAG Group and Lion Air Group. Combined, this activity will see the W-IFE installed base grow to 8,261 – up from 7,975 in 2019. The eagle-eyed amongst you will note that last year’s installed base plus this year’s expected installs does not equal the projected installed based for 2020. And that’s because there were a large number of systems deducted from the total due to aircraft retirements and de-installations. By 2030, we believe that the number of aircraft with a W-IFE system will grow to exceed 21,000. Given the evidence before us, it would be quite easy to agree with the industry contact mentioned at the beginning of this blog and declare that seatback systems have finally entered into a terminal decline after previous reports of its death were greatly exaggerated. That is not the view we’d take, however. Airlines will increasingly move towards ensuring passengers encounter multiple transient hardware interfaces on longer journeys, each supported by cloud services and enabling a hyper-personalised lifestyle experience. The passenger PED will become the continuity and comfort display, or the companion that connects their entire journey. The IFE screen will become secondary in value and the conduit through which all manner of traditional and non-traditional content – consistent with the airlines’ brand positioning and passenger preferences – will be displayed. In short, an enabler of services. Seatback IFE is still not dead, therefore, it will just be reborn under a different guise. [/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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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]

2’s Company, 28’s a Crowd: Truth and Lies in Wireless IFE

With the world and his W-IFE now seemingly involved, keeping track of developments in this market is one that becomes more difficult with every passing quarter. At last count (Q1 2019), 25 service providers had installed their respective solutions on at least one aircraft, and more are entering the fray all the time. TEAC’s new portable solution, PortaStream, launched with IBEX Airlines on April 1st, Mythopoeia is currently rolling out its streaming platform on Rossiya and Atlas Air, while Phitek’s long-delayed deployment of Cabinstream boxes on the Afrijet ATR fleet is finally underway. So there will be at least 28 active vendors when we get round to crunching the numbers for Q2 and as we’ve covered before, plenty of candidates providing infotainment solutions in other transportation markets that may also decide they want a piece of the action.

Even so, the market is what the Herfindahl-Hirschman Index (HHI) would define as “moderately concentrated” – 1,693 being the total of each companies’ squared market share. In comparison, seatback IFE, which is dominated by Panasonic Avionics and Thales, has a HHI of 4,809, which is indicative of a highly concentrated marketplace. The reason for this is that the top five vendors – Gogo, Panasonic Avionics, Global Eagle, Viasat and Thales – collectively account for just over three-quarters of all aircraft with W-IFE. Each company owes their lofty position in the market share rankings primarily to their in-flight connectivity (IFC) heritage – W-IFE shares the same on-board architecture as IFC and can be bolted onto existing installations relatively easily.

Beyond this top five lies a clutch of vendors offering W-IFE solutions with no connectivity element of their own, although several have partnered with IFC providers to combine the two services. Only five of these companies have equipped more than 100 aircraft with W-IFE; Lufthansa Systems, AirFi, Safran (Zii), Immfly and Bluebox Aviation Systems. And contrary to the incredible number of competing W-IFE studies being pumped out on a near daily basis (see exhibits A, B and C), BAE systems are not active in the market and haven’t been for some time, while Bluebox Avionics became Bluebox Aviation Systems more than two years ago. Just remember folks, not all market intelligence firms were created equal. Some of us spend hours conducting real, primary research ?

The influx of vendors certainly makes sense when you consider the apparent advantages of W-IFE – less costly systems, reduced weight/fuel burn, rapid installation (in the case of portable W-IFE), lower maintenance costs, an abundance of PEDs being brought on board, a large untapped single-aisle market, the potential to generate ancillary revenues etc. But eight years after wireless streaming first came to the fore, there are problems still to be ironed out.

Chief amongst them is the apparent frustration passengers experience when dealing with app-based DRM. Whether it be confusion that on-board Wi-Fi is not necessarily the same as Wi-Fi that opens the door to the world wide web, an inability to download an app in a disconnected environment, or issues with compatibility across different mobile operating systems, it would seem that the move away from app-based DRM can’t come soon enough. For service providers, app-based DRM is undesirable for several reasons. Not only do passengers often forget to download W-IFE applications ahead of their journey, evidence is stacking up to suggest there’s a ceiling on the number of apps they are willing to download and use. And of course, apps create additional costs every time an update to an operating system is rolled out.

Another issue is the lack of in-seat power on the majority of single-aisle aircraft – the key target market for W-IFE vendors. According to our latest study, about 20% of single-aisle seats have an in-seat power outlet, compared to about 75% of available seats on twin-aisle aircraft. With no access to on-board power, there is every chance passengers won’t use W-IFE and instead, opt to preserve precious charge for when they land. Thankfully, departmental siloes that have prevented these two amenities from being deployed at the same time are showing signs of breaking down.

The question remains whether the market can sustain nigh-on 30 different vendors. It’s one thing putting together impressive looking demo solutions inexpensively. However, ensuring these solutions satisfy Hollywood studios, demonstrating PCI compliance and getting installations done under STC are all difficult, time consuming and expensive. That’s without taking into account the difficulties in facing off against established IFE players who carry more clout when it comes to getting their solutions approved for the line-fit market and who can often draw upon expansive R&D budgets of parent companies, as well as the ability to offer truly global after sales services.

Consolidation seems inevitable and it would be foolish to assume others won’t go the way of Storebox Inflight, Ocleen TV, BAE Systems and PaxLife, all of which entered and exited the market in a relatively small space of time.

As part of our aviation portfolio, and to supplement our in-depth annual deep dive into the in-flight entertainment market, Valour Consultancy delivers a quarterly tracker designed to keep those with an interest in the area updated on W-IFE installation activity and key trends. Unlike other quarterly trackers, the W-IFE tracker is extremely rich in data with various splits including airline, product type, aircraft type, sub fleet, fitment type, geographic region, connectivity and service provider and hardware partners. Its updated with input from service providers and airlines and is a must-have resource for anyone looking for an accurate and up-to-date understanding of the market.

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With the world and his W-IFE now seemingly involved, keeping track of developments in this market is one that becomes more difficult with every passing quarter. At last count (Q1 2019), 25 service providers had installed their respective solutions on at least one aircraft, and more are entering the fray all the time. TEAC’s new portable solution, PortaStream, launched with IBEX Airlines on April 1st, Mythopoeia is currently rolling out its streaming platform on Rossiya and Atlas Air, while Phitek’s long-delayed deployment of Cabinstream boxes on the Afrijet ATR fleet is finally underway. So there will be at least 28 active vendors when we get round to crunching the numbers for Q2 and as we’ve covered before, plenty of candidates providing infotainment solutions in other transportation markets that may also decide they want a piece of the action. Even so, the market is what the Herfindahl-Hirschman Index (HHI) would define as “moderately concentrated” – 1,693 being the total of each companies’ squared market share. In comparison, seatback IFE, which is dominated by Panasonic Avionics and Thales, has a HHI of 4,809, which is indicative of a highly concentrated marketplace. The reason for this is that the top five vendors – Gogo, Panasonic Avionics, Global Eagle, Viasat and Thales – collectively account for just over three-quarters of all aircraft with W-IFE. Each company owes their lofty position in the market share rankings primarily to their in-flight connectivity (IFC) heritage – W-IFE shares the same on-board architecture as IFC and can be bolted onto existing installations relatively easily. Beyond this top five lies a clutch of vendors offering W-IFE solutions with no connectivity element of their own, although several have partnered with IFC providers to combine the two services. Only five of these companies have equipped more than 100 aircraft with W-IFE; Lufthansa Systems, AirFi, Safran (Zii), Immfly and Bluebox Aviation Systems. And contrary to the incredible number of competing W-IFE studies being pumped out on a near daily basis (see exhibits A, B and C), BAE systems are not active in the market and haven’t been for some time, while Bluebox Avionics became Bluebox Aviation Systems more than two years ago. Just remember folks, not all market intelligence firms were created equal. Some of us spend hours conducting real, primary research ? The influx of vendors certainly makes sense when you consider the apparent advantages of W-IFE – less costly systems, reduced weight/fuel burn, rapid installation (in the case of portable W-IFE), lower maintenance costs, an abundance of PEDs being brought on board, a large untapped single-aisle market, the potential to generate ancillary revenues etc. But eight years after wireless streaming first came to the fore, there are problems still to be ironed out. Chief amongst them is the apparent frustration passengers experience when dealing with app-based DRM. Whether it be confusion that on-board Wi-Fi is not necessarily the same as Wi-Fi that opens the door to the world wide web, an inability to download an app in a disconnected environment, or issues with compatibility across different mobile operating systems, it would seem that the move away from app-based DRM can’t come soon enough. For service providers, app-based DRM is undesirable for several reasons. Not only do passengers often forget to download W-IFE applications ahead of their journey, evidence is stacking up to suggest there’s a ceiling on the number of apps they are willing to download and use. And of course, apps create additional costs every time an update to an operating system is rolled out. Another issue is the lack of in-seat power on the majority of single-aisle aircraft – the key target market for W-IFE vendors. According to our latest study, about 20% of single-aisle seats have an in-seat power outlet, compared to about 75% of available seats on twin-aisle aircraft. With no access to on-board power, there is every chance passengers won’t use W-IFE and instead, opt to preserve precious charge for when they land. Thankfully, departmental siloes that have prevented these two amenities from being deployed at the same time are showing signs of breaking down. The question remains whether the market can sustain nigh-on 30 different vendors. It’s one thing putting together impressive looking demo solutions inexpensively. However, ensuring these solutions satisfy Hollywood studios, demonstrating PCI compliance and getting installations done under STC are all difficult, time consuming and expensive. That’s without taking into account the difficulties in facing off against established IFE players who carry more clout when it comes to getting their solutions approved for the line-fit market and who can often draw upon expansive R&D budgets of parent companies, as well as the ability to offer truly global after sales services. Consolidation seems inevitable and it would be foolish to assume others won’t go the way of Storebox Inflight, Ocleen TV, BAE Systems and PaxLife, all of which entered and exited the market in a relatively small space of time. As part of our aviation portfolio, and to supplement our in-depth annual deep dive into the in-flight entertainment market, Valour Consultancy delivers a quarterly tracker designed to keep those with an interest in the area updated on W-IFE installation activity and key trends. Unlike other quarterly trackers, the W-IFE tracker is extremely rich in data with various splits including airline, product type, aircraft type, sub fleet, fitment type, geographic region, connectivity and service provider and hardware partners. Its updated with input from service providers and airlines and is a must-have resource for anyone looking for an accurate and up-to-date understanding of the market.

What’s Going on in the World of Wireless In-Flight Entertainment?

Last month, Valour Consultancy published its long-awaited report “The Future of In-Flight Entertainment – 2017”, which covers the prospects for four types of in-flight entertainment (IFE) product: embedded IFE, wireless IFE (W-IFE), overhead IFE and portable units. In this blog, we zero in on the W-IFE market and share some insight into its present state, likely future development and how the competitive landscape is shaping up.

By the end of 2017, the installed base of W-IFE will stand at just over 6,000 aircraft. Drilling down into this top-level number reveals some interesting trends:

  • About 80% of W-IFE-equipped aircraft also offer full off-board connectivity.
  • North America still dominates the W-IFE landscape, but penetration elsewhere is growing – particularly in Western Europe, and Central and South America.
  • At the end of 2017, single-aisle aircraft will account for almost 90% of the installed base.
  • W-IFE line-fitments are a rare commodity – just 60 aircraft had systems installed at the factory in 2017.
  • Portable W-IFE continues to confound the doubters and the number of companies offering this kind of solution keeps on growing.

Internet-enabled W-IFE

In the early days of W-IFE, most installations were on aircraft already equipped with in-flight connectivity (IFC). Global Eagle and Gogo have the largest share of the current W-IFE installed base mainly because they have been able to easily add their respective solutions to existing IFC deployments that utilise the same in-cabin architecture. Combining IFC and W-IFE is almost a no-brainer for airlines as it results in little disruption and has the potential to generate additional ancillary revenues, while at the same time, reducing the strain on sometimes overburdened networks.

In 2015, however, we started to see the emergence of vendors eager to attract those operators not yet convinced by the economics of IFC offering solutions with no connectivity element. However, it has become evident that unconnected W-IFE has not established itself to the extent many were expecting. W-IFE grows mostly as an accessory to IFC and will continue to do so, especially as technology improves and the benefits of an integrated IFEC approach (greater personalisation, tailored content, operational efficiencies etc.) become more obvious.

Some market participants are positioning themselves as universal service providers capable of handling multiple platforms, connectivity links and applications throughout the cockpit and cabin. SITAONAIR and Rockwell Collins have been most vocal about their abilities in this regard; both eager to capitalise on the need for nose-to-tail connectivity. As this theme gathers momentum, W-IFE and IFC will increasingly be procured alongside one another and in addition to other products such as flight tracking and ACARS messaging. We, therefore, expect the number of aircraft with Internet-enabled W-IFE to surpass 13,000 by 2026 – up from approximately 4,500 in 2016.

Portable W-IFE Vendors

That’s not to say there’s no role for unconnected W-IFE to play. There absolutely is, and proponents of portable W-IFE are arguably best-placed to take advantage of this.

These solutions are attractive for a number of reasons:

  • Low up-front costs.
  • No STCs, thus minimising aircraft downtime and installation costs.
  • Low weight/small footprint.
  • Older units can be swapped for newer variants as technology evolves.
  • A low-risk way to trial W-IFE.

Consequently, the market for portable W-IFE has quickly become very crowded. AirFi, the company that pioneered the concept of portable W-IFE back in January 2015, has now been joined by the following vendors:

  • Lufthansa Systems
  • LSK Sky Chefs (Media inMotion)
  • Bluebox Aviation Systems
  • Inflight Dublin
  • Amphenol Phitek
  • Flow IFE
  • Vision Systems
  • Interactive Mobility (Flymingo)
  • ViaSat
  • Immfly

Others stand ready to enter the fray. In March 2017, Intertrust Technologies acquired Kiora Media and with it, a content distribution platform that can be used for IFE. Likewise, Czech-based Passengera has developed an infotainment platform for the bus, rail, vehicle and aviation markets. SkyFlix and Paradigm Tech, meanwhile, have opted to concentrate on business aviation thus far, but could, conceivably, look to address the commercial aviation market in future with their SkyFlix 2 and AdonisOne systems, respectively.

Hybrid Portable W-IFE

Faced with increased competition, incumbent vendors have sought to protect their position and over the last few months, several have unveiled portable W-IFE boxes that can be connected to the aircraft power supply. This type of solution is likely to prove popular among operators not keen on the logistical side of portable W-IFE that involves units being removed from the aircraft at the end of the day for recharging and content refreshment.

New Lufthansa Systems’ customer, Air Europa, is deploying a version of BoardConnect Portable that will see boxes stored in the overhead storage compartments of aircraft and further secured with Lufthansa Technik’s Power & Safe solution, a locked safe which is connected to a power supply to prevent unwanted access. Immfly and Air Nostrum have also launched a powered solution whereby boxes can be charged and powered on board the aircraft, while AirFi has announced that it is offering something similar. We speculate that the same is true of ViaSat and Tigerair Australia, although precise details are not currently available.

Such solutions combine the benefits of both a portable and an installed IFE solution and could prove popular in the low-cost sector and on short- and medium-haul routes in particular.

Future of W-IFE

Service provider backlog indicates that airlines under contract represent at least three years’ worth of W-IFE installations to come. Furthermore, some big airlines have recently committed to W-IFE.

Air France’s new low-cost subsidiary, Joon, is fitting Display Interactive’s UGO technology on its fleet and the French company along with Chinese partner, Donica, are close to revealing the name of another major client. Immfly is celebrating the recent launch of its “Air Time” service as part of a pilot on five easyJet aircraft, Panasonic Avionics’ eXW streaming system is being deployed on Hawaiian Airlines’ new A321neos and as already mentioned, Lufthansa Systems has bagged Air Europa.

Bluebox Aviation Systems, AirFi and Inflight Dublin continue to pick up new customers for their portable propositions, too. Bluebox has won the business of Solaseed Air and Air Inuit in the last few months and expects to reveal the names of additional customers imminently. AirFi has added Samoa Airways to a customer list that has grown rapidly in just three years and now consists of more than 30 airlines. Africa, which is almost entirely untapped as far as W-IFE goes, appears to be a major focus for Inflight Dublin. The Irish content service provider has signed up Tunisair and Kenya Airways as customers for the portable variant of its Everhub offer.

All things told, there is certainly every reason to believe our forecast of 15,000 W-IFE equipped aircraft by 2026 will be fulfilled. Much less certain is whether there will still be 30 plus vendors in the market by this point in time. The likes of Storebox Inflight, Ocleen TV, BAE Systems and PaxLife have all entered and exited the W-IFE market in a relatively short space of time and it would be foolish to assume that others will not follow suit.

Wireless In-Flight Entertainment Market Forecast

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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="4956|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/2017/12/Cellphone-Airplane-Mode-PHONEMODE0316-1024x640-1.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] Last month, Valour Consultancy published its long-awaited report “The Future of In-Flight Entertainment – 2017”, which covers the prospects for four types of in-flight entertainment (IFE) product: embedded IFE, wireless IFE (W-IFE), overhead IFE and portable units. In this blog, we zero in on the W-IFE market and share some insight into its present state, likely future development and how the competitive landscape is shaping up. By the end of 2017, the installed base of W-IFE will stand at just over 6,000 aircraft. Drilling down into this top-level number reveals some interesting trends:
  • About 80% of W-IFE-equipped aircraft also offer full off-board connectivity.
  • North America still dominates the W-IFE landscape, but penetration elsewhere is growing – particularly in Western Europe, and Central and South America.
  • At the end of 2017, single-aisle aircraft will account for almost 90% of the installed base.
  • W-IFE line-fitments are a rare commodity – just 60 aircraft had systems installed at the factory in 2017.
  • Portable W-IFE continues to confound the doubters and the number of companies offering this kind of solution keeps on growing.
Internet-enabled W-IFE In the early days of W-IFE, most installations were on aircraft already equipped with in-flight connectivity (IFC). Global Eagle and Gogo have the largest share of the current W-IFE installed base mainly because they have been able to easily add their respective solutions to existing IFC deployments that utilise the same in-cabin architecture. Combining IFC and W-IFE is almost a no-brainer for airlines as it results in little disruption and has the potential to generate additional ancillary revenues, while at the same time, reducing the strain on sometimes overburdened networks. In 2015, however, we started to see the emergence of vendors eager to attract those operators not yet convinced by the economics of IFC offering solutions with no connectivity element. However, it has become evident that unconnected W-IFE has not established itself to the extent many were expecting. W-IFE grows mostly as an accessory to IFC and will continue to do so, especially as technology improves and the benefits of an integrated IFEC approach (greater personalisation, tailored content, operational efficiencies etc.) become more obvious. Some market participants are positioning themselves as universal service providers capable of handling multiple platforms, connectivity links and applications throughout the cockpit and cabin. SITAONAIR and Rockwell Collins have been most vocal about their abilities in this regard; both eager to capitalise on the need for nose-to-tail connectivity. As this theme gathers momentum, W-IFE and IFC will increasingly be procured alongside one another and in addition to other products such as flight tracking and ACARS messaging. We, therefore, expect the number of aircraft with Internet-enabled W-IFE to surpass 13,000 by 2026 – up from approximately 4,500 in 2016. Portable W-IFE Vendors That’s not to say there’s no role for unconnected W-IFE to play. There absolutely is, and proponents of portable W-IFE are arguably best-placed to take advantage of this. These solutions are attractive for a number of reasons:
  • Low up-front costs.
  • No STCs, thus minimising aircraft downtime and installation costs.
  • Low weight/small footprint.
  • Older units can be swapped for newer variants as technology evolves.
  • A low-risk way to trial W-IFE.
Consequently, the market for portable W-IFE has quickly become very crowded. AirFi, the company that pioneered the concept of portable W-IFE back in January 2015, has now been joined by the following vendors:
  • Lufthansa Systems
  • LSK Sky Chefs (Media inMotion)
  • Bluebox Aviation Systems
  • Inflight Dublin
  • Amphenol Phitek
  • Flow IFE
  • Vision Systems
  • Interactive Mobility (Flymingo)
  • ViaSat
  • Immfly
Others stand ready to enter the fray. In March 2017, Intertrust Technologies acquired Kiora Media and with it, a content distribution platform that can be used for IFE. Likewise, Czech-based Passengera has developed an infotainment platform for the bus, rail, vehicle and aviation markets. SkyFlix and Paradigm Tech, meanwhile, have opted to concentrate on business aviation thus far, but could, conceivably, look to address the commercial aviation market in future with their SkyFlix 2 and AdonisOne systems, respectively. Hybrid Portable W-IFE Faced with increased competition, incumbent vendors have sought to protect their position and over the last few months, several have unveiled portable W-IFE boxes that can be connected to the aircraft power supply. This type of solution is likely to prove popular among operators not keen on the logistical side of portable W-IFE that involves units being removed from the aircraft at the end of the day for recharging and content refreshment. New Lufthansa Systems’ customer, Air Europa, is deploying a version of BoardConnect Portable that will see boxes stored in the overhead storage compartments of aircraft and further secured with Lufthansa Technik’s Power & Safe solution, a locked safe which is connected to a power supply to prevent unwanted access. Immfly and Air Nostrum have also launched a powered solution whereby boxes can be charged and powered on board the aircraft, while AirFi has announced that it is offering something similar. We speculate that the same is true of ViaSat and Tigerair Australia, although precise details are not currently available. Such solutions combine the benefits of both a portable and an installed IFE solution and could prove popular in the low-cost sector and on short- and medium-haul routes in particular. Future of W-IFE Service provider backlog indicates that airlines under contract represent at least three years’ worth of W-IFE installations to come. Furthermore, some big airlines have recently committed to W-IFE. Air France’s new low-cost subsidiary, Joon, is fitting Display Interactive’s UGO technology on its fleet and the French company along with Chinese partner, Donica, are close to revealing the name of another major client. Immfly is celebrating the recent launch of its “Air Time” service as part of a pilot on five easyJet aircraft, Panasonic Avionics’ eXW streaming system is being deployed on Hawaiian Airlines’ new A321neos and as already mentioned, Lufthansa Systems has bagged Air Europa. Bluebox Aviation Systems, AirFi and Inflight Dublin continue to pick up new customers for their portable propositions, too. Bluebox has won the business of Solaseed Air and Air Inuit in the last few months and expects to reveal the names of additional customers imminently. AirFi has added Samoa Airways to a customer list that has grown rapidly in just three years and now consists of more than 30 airlines. Africa, which is almost entirely untapped as far as W-IFE goes, appears to be a major focus for Inflight Dublin. The Irish content service provider has signed up Tunisair and Kenya Airways as customers for the portable variant of its Everhub offer. All things told, there is certainly every reason to believe our forecast of 15,000 W-IFE equipped aircraft by 2026 will be fulfilled. Much less certain is whether there will still be 30 plus vendors in the market by this point in time. The likes of Storebox Inflight, Ocleen TV, BAE Systems and PaxLife have all entered and exited the W-IFE market in a relatively short space of time and it would be foolish to assume that others will not follow suit. Wireless In-Flight Entertainment Market Forecast [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Seat-back In-Flight Entertainment is NOT Dying!

It might not be a date that immediately evokes strong memories but cast your mind back, if you will, to January 25th, 2017. Donald Trump was just getting his feet under the White House desk after a shock election victory two months’ prior, Roger Federer was rolling back the years on his way to capturing a remarkable 18th grand slam at the Australian Open and, lest we forget, news outlets the world over were united in sounding the death knell for the humble seat-back in-flight entertainment (IFE) system.

And what prompted such proclamations I hear you ask? American Airlines revealed that it would be eschewing embedded IFE on new Boeing 737 MAX aircraft in favour of wireless distribution of content to passengers’ own devices. Yes, the decision by one carrier not to offer the traditional seat-back IFE on one single aircraft type sent the media into a frenzy and resulted in headlines like these:

The death of in-flight entertainment? American Airlines scraps screens and tells fliers to bring their own” – The Telegraph

American Airlines to ditch seat back entertainment” – CNBC

American Airlines does away with seat-back entertainment” – The Economist

I could certainly understand the hullaballoo if American had come to such a decision for say, the 22 A350s it currently has on order, but that fact that it chose not to fit embedded IFE on some narrow-body aircraft is hardly revolutionary. Indeed, an estimated 45% of these aircraft roll off production lines without any form of IFE on board, and around one-third of the installed base still, somewhat surprisingly, carries drop-down screens (overhead IFE). It is therefore disingenuous in the extreme to imply that the adoption of wireless IFE (W-IFE) on aircraft that often don’t carry any form of IFE whatsoever is somehow tantamount to the imminent extinction of an entire class of product.

Today, nearly every single wide-body aircraft is delivered with a seat-back system and it would be much more revealing to look at whether W-IFE is making inroads into this market to establish whether a fundamental shift is taking place. The answer is that W-IFE is making inroads, but not at the expense of embedded IFE. In fact, many carriers are installing both W-IFE alongside seat-back screens on their long-haul aircraft. One reason for this is the emergence of second screening where people commonly use their personal electronic devices (PEDs) while watching another screen – a trend most prevalent amongst millennials who are accounting for an increasingly larger percentage of travellers.

Interestingly, it is Philippine Airlines (PAL), which might provide a clue as to how the industry may shake out in the not-too-distant future. Back in 2014, the carrier drew widespread criticism and mixed reviews for choosing to jettison embedded IFE on much of its long-haul fleet. Instead, PAL fitted its A330s and A340s with SITAONAIR’s ONAIR Play W-IFE offering and was heralded as the “poster boy” for the new class of streaming systems making their way to market. Fast forward to January 23rd, 2017 – a mere two days before American Airlines made shockwaves – and PAL quietly announced the return of embedded Audio/Video On-Demand (AVOD) systems on its A330s. The reader should note that its A340s are in the process of being phased out, while ONAIR Play will still be offered on the A330s, as well as on the carrier’s short-haul aircraft.

The bottom line is that when it comes to the death of embedded IFE, we’ve heard it all before. The re-birth of IFC following the demise of Connexion by Boeing in the mid-2000s was supposed to usher in a new era of in-cabin entertainment whereby passengers could stream to their hearts’ content. While the likes of JetBlue Airways, Aeromexico and QANTAS have, in recent years, struck deals with Amazon Prime (in the case of the former) and Netflix (in the case of the latter two) that allow passengers to do just this using new high-speed connectivity pipes, all continue to maintain the latest seat-back screens.

The key reason W-IFE will not cannibalise a significant chunk of the classic IFE market in the next ten years is down to the fact that almost every single wide-body is ordered with an embedded system way in advance of actual delivery. Furthermore, major Gulf carriers have indicated that they fully intend to offer seat-back screens well into the future. Emirates, for example, will install seat-back IFE on the 150 Boeing 777X aircraft that will start to enter its fleet in 2020. As long as these luxury brands continue to offer embedded systems, other flag carriers will be compelled to do likewise in order to be seen as on the cutting edge of in-cabin technology.

Another roadblock that W-IFE vendors seeking to smash into the wide-body market need to surmount is the restriction on the streaming of early window content (EWC) to passenger PEDs. Though some vendors are keen to underplay the value of EWC, passengers have come to expect that they will be able to watch the latest Hollywood blockbusters on medium- and long-haul flights. To put this into perspective, Rodrigo Llaguno, Customer Experience Corporate Vice President at Aeromexico recently revealed that the airline had expected a higher take-up of passengers watching Netflix and was surprised when data revealed that people were actually watching more EWC. Regardless of the availability of EWC, there is an extremely long way to go before IFC technology can support streaming of web-based content to multiple seats on multiple aircraft and at a price that is palatable to passengers.

Relying on the bring your own device (BYOD) model has several other pitfalls. One is the assumption that passengers will bring onboard devices that are either fully charged, or contain sufficient charge for them to interact with the IFC/W-IFE systems for a sizeable portion of the flight. With many travellers now using their smartphones throughout their journey to store mobile boarding passes and to help them navigate through airports, as well as for general use, the need to re-charge on board is higher than ever. Unless PED battery life improves dramatically in coming years, in-seat power should almost always be installed alongside W-IFE and IFC. However, in-seat power comes with significant weight and cost penalties and weight and cost are, of course, two key considerations when carriers make the decision to ditch embedded systems in the first place.

Because most seats do not feature a method to keep PEDs upright and at a favourable viewing angle, passengers generally hold smartphones or tablets in their hands while resting their arms on the tray table. When watching a movie or television show for a long period of time, this can quickly result in neck and/or wrist ache. Additionally, the moment food and drink items arrive is the moment this valued arm rest takes on another purpose. Though a number of vendors have developed PED holders designed to overcome these issues, there is still plenty of room for innovation as pointed out by John Walton in this informative article on Runway Girl Network.

The recent electronics ban also highlighted the vulnerability of the W-IFE market to the ongoing fight against terrorism. Though it has now been partially lifted, any future return or extension of the ban (to smaller devices) would undoubtedly be extremely favourable to the future of seat-back systems.

For these reasons, it is hard to imagine seat-back IFE disappearing on long-range aircraft anytime soon. Rather than replacement technologies, W-IFE and IFC should be viewed as complimentary to embedded IFE. Entertainment can be amplified by connectivity, which can be viewed as a gateway to endless media and content options for everyone. Indeed, true personalisation of content and ads cannot be achieved without real-time connectivity off of the aircraft. Thus, it might be said that where there was once IFE, there will also now be IFC and where IFC existed on its own, there are opportunities too for IFE, whether wireless of wired.

Like PAL, Delta is another interesting test case. As well as providing IFC on many of its aircraft, it has also gone fleet-wide with the Gogo Vision-based “Delta Studio” W-IFE system. Whether passengers ultimately prefer to use this, the embedded system or a mixture of the two will offer insight into how the industry will develop.

Valour Consultancy is currently developing two new reports that delve more deeply into these trends. “The Future of In-Flight Entertainment – 2017” quantifies the market for four types of IFE system (embedded, wireless, overhead and portable) and provides forecasts for the growth of each. “The Future of In-Flight Entertainment Content – 2017” looks at how the demand for content is changing, particularly on routes where the flight time is shorter than the length of a typical movie.

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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="4932|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/2018/01/IFE.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] It might not be a date that immediately evokes strong memories but cast your mind back, if you will, to January 25th, 2017. Donald Trump was just getting his feet under the White House desk after a shock election victory two months’ prior, Roger Federer was rolling back the years on his way to capturing a remarkable 18th grand slam at the Australian Open and, lest we forget, news outlets the world over were united in sounding the death knell for the humble seat-back in-flight entertainment (IFE) system. And what prompted such proclamations I hear you ask? American Airlines revealed that it would be eschewing embedded IFE on new Boeing 737 MAX aircraft in favour of wireless distribution of content to passengers’ own devices. Yes, the decision by one carrier not to offer the traditional seat-back IFE on one single aircraft type sent the media into a frenzy and resulted in headlines like these: “The death of in-flight entertainment? American Airlines scraps screens and tells fliers to bring their own” – The Telegraph “American Airlines to ditch seat back entertainment” – CNBC “American Airlines does away with seat-back entertainment” – The Economist I could certainly understand the hullaballoo if American had come to such a decision for say, the 22 A350s it currently has on order, but that fact that it chose not to fit embedded IFE on some narrow-body aircraft is hardly revolutionary. Indeed, an estimated 45% of these aircraft roll off production lines without any form of IFE on board, and around one-third of the installed base still, somewhat surprisingly, carries drop-down screens (overhead IFE). It is therefore disingenuous in the extreme to imply that the adoption of wireless IFE (W-IFE) on aircraft that often don’t carry any form of IFE whatsoever is somehow tantamount to the imminent extinction of an entire class of product. Today, nearly every single wide-body aircraft is delivered with a seat-back system and it would be much more revealing to look at whether W-IFE is making inroads into this market to establish whether a fundamental shift is taking place. The answer is that W-IFE is making inroads, but not at the expense of embedded IFE. In fact, many carriers are installing both W-IFE alongside seat-back screens on their long-haul aircraft. One reason for this is the emergence of second screening where people commonly use their personal electronic devices (PEDs) while watching another screen – a trend most prevalent amongst millennials who are accounting for an increasingly larger percentage of travellers. Interestingly, it is Philippine Airlines (PAL), which might provide a clue as to how the industry may shake out in the not-too-distant future. Back in 2014, the carrier drew widespread criticism and mixed reviews for choosing to jettison embedded IFE on much of its long-haul fleet. Instead, PAL fitted its A330s and A340s with SITAONAIR’s ONAIR Play W-IFE offering and was heralded as the “poster boy” for the new class of streaming systems making their way to market. Fast forward to January 23rd, 2017 – a mere two days before American Airlines made shockwaves – and PAL quietly announced the return of embedded Audio/Video On-Demand (AVOD) systems on its A330s. The reader should note that its A340s are in the process of being phased out, while ONAIR Play will still be offered on the A330s, as well as on the carrier’s short-haul aircraft. The bottom line is that when it comes to the death of embedded IFE, we’ve heard it all before. The re-birth of IFC following the demise of Connexion by Boeing in the mid-2000s was supposed to usher in a new era of in-cabin entertainment whereby passengers could stream to their hearts' content. While the likes of JetBlue Airways, Aeromexico and QANTAS have, in recent years, struck deals with Amazon Prime (in the case of the former) and Netflix (in the case of the latter two) that allow passengers to do just this using new high-speed connectivity pipes, all continue to maintain the latest seat-back screens. The key reason W-IFE will not cannibalise a significant chunk of the classic IFE market in the next ten years is down to the fact that almost every single wide-body is ordered with an embedded system way in advance of actual delivery. Furthermore, major Gulf carriers have indicated that they fully intend to offer seat-back screens well into the future. Emirates, for example, will install seat-back IFE on the 150 Boeing 777X aircraft that will start to enter its fleet in 2020. As long as these luxury brands continue to offer embedded systems, other flag carriers will be compelled to do likewise in order to be seen as on the cutting edge of in-cabin technology. Another roadblock that W-IFE vendors seeking to smash into the wide-body market need to surmount is the restriction on the streaming of early window content (EWC) to passenger PEDs. Though some vendors are keen to underplay the value of EWC, passengers have come to expect that they will be able to watch the latest Hollywood blockbusters on medium- and long-haul flights. To put this into perspective, Rodrigo Llaguno, Customer Experience Corporate Vice President at Aeromexico recently revealed that the airline had expected a higher take-up of passengers watching Netflix and was surprised when data revealed that people were actually watching more EWC. Regardless of the availability of EWC, there is an extremely long way to go before IFC technology can support streaming of web-based content to multiple seats on multiple aircraft and at a price that is palatable to passengers. Relying on the bring your own device (BYOD) model has several other pitfalls. One is the assumption that passengers will bring onboard devices that are either fully charged, or contain sufficient charge for them to interact with the IFC/W-IFE systems for a sizeable portion of the flight. With many travellers now using their smartphones throughout their journey to store mobile boarding passes and to help them navigate through airports, as well as for general use, the need to re-charge on board is higher than ever. Unless PED battery life improves dramatically in coming years, in-seat power should almost always be installed alongside W-IFE and IFC. However, in-seat power comes with significant weight and cost penalties and weight and cost are, of course, two key considerations when carriers make the decision to ditch embedded systems in the first place. Because most seats do not feature a method to keep PEDs upright and at a favourable viewing angle, passengers generally hold smartphones or tablets in their hands while resting their arms on the tray table. When watching a movie or television show for a long period of time, this can quickly result in neck and/or wrist ache. Additionally, the moment food and drink items arrive is the moment this valued arm rest takes on another purpose. Though a number of vendors have developed PED holders designed to overcome these issues, there is still plenty of room for innovation as pointed out by John Walton in this informative article on Runway Girl Network. The recent electronics ban also highlighted the vulnerability of the W-IFE market to the ongoing fight against terrorism. Though it has now been partially lifted, any future return or extension of the ban (to smaller devices) would undoubtedly be extremely favourable to the future of seat-back systems. For these reasons, it is hard to imagine seat-back IFE disappearing on long-range aircraft anytime soon. Rather than replacement technologies, W-IFE and IFC should be viewed as complimentary to embedded IFE. Entertainment can be amplified by connectivity, which can be viewed as a gateway to endless media and content options for everyone. Indeed, true personalisation of content and ads cannot be achieved without real-time connectivity off of the aircraft. Thus, it might be said that where there was once IFE, there will also now be IFC and where IFC existed on its own, there are opportunities too for IFE, whether wireless of wired. Like PAL, Delta is another interesting test case. As well as providing IFC on many of its aircraft, it has also gone fleet-wide with the Gogo Vision-based “Delta Studio” W-IFE system. Whether passengers ultimately prefer to use this, the embedded system or a mixture of the two will offer insight into how the industry will develop. Valour Consultancy is currently developing two new reports that delve more deeply into these trends. “The Future of In-Flight Entertainment – 2017” quantifies the market for four types of IFE system (embedded, wireless, overhead and portable) and provides forecasts for the growth of each. “The Future of In-Flight Entertainment Content – 2017” looks at how the demand for content is changing, particularly on routes where the flight time is shorter than the length of a typical movie. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Samsung Galaxy Note 7 Woes and the Impact on IFEC

On an Air France flight from Marseille to Paris recently, I couldn’t help but notice a striking addition to the standard safety briefing.

“Ladies and Gentlemen, due to the recent safety issues with Galaxy Note 7 devices, we ask passengers to ensure your device is completely switched off and stored away for the duration of this flight”.

This is perhaps not one of those statements that will cause much alarm for seasoned passengers. Such personal alarm will always be reserved for “brace, brace”. However, behind the polite tone of each air flight attendant that delivers the above statement, is a very nervous airline. And rightly so! The World Wide Web is full of visual evidence backing up the need for the aviation industry to throw everything into ensuring issues do not arise in the air. Indeed, one flight has already had a lucky escape and we’re now seeing requests not just to switch off the plagued smartphone, but to ensure that people don’t travel with it all. Samsung has even opened “swap and drop” booths at major Australian airports where Note 7’s can be traded for the Galaxy S7 Edge.

The U.S. Federal Aviation Administration (FAA) has issued an emergency order to ban all Samsung Galaxy Note 7 smartphone devices from air transportation in the United States and Japan’s transport ministry quickly followed suit. As a result, many airlines across the globe are prohibiting passengers from flying with the device for fear that it may catch fire mid-flight. Such fear has caused Delta Air Lines to accelerate pre-existing plans to fit planes with fire-containment bags. The likes of Alaska Airlines and Virgin America have already adopted the bags, which are capable of sealing up an overheating smartphone or laptop battery.

Emirates urges its passengers to carry switched-off Note 7's in cabin baggage only.
Emirates urges its passengers to carry switched-off Note 7’s in cabin baggage only

Following relaxation on the use of personal electronic devices (PEDs) in flight, this issue has brought a very significant con to the table. Any device or object that poses the potential risk of starting a fire onboard an aircraft in flight is something authorities will simply not tolerate. Questions that airlines and others are sure to be asking at this point in time include:

  • “Is this a one-off, isolated to the Samsung Galaxy Note 7?”
  • “What is the potential for other PEDs to have a similar defect?”
  • “Are other battery-powered devices at risk?”

At this point in time, it looks like this particular issue is isolated to one device alone. That’s not to say that other phones haven’t caught fire. They have. Several iPhone owners, for example, have allegedly suffered nasty burns from exploding devices. The exact cause of the Note 7 issue is not known but is said to relate to a sub-optimal assembly process. Fortunately, a combination of the corrective actions by Samsung (i.e. recalling every single Note 7) and the response of the aviation industry seems to have done enough to ensure no device has gone up in flames mid-air.

At Valour Consultancy, we’ve been asked to provide our perspective on where this leaves the in-flight entertainment and connectivity (IFEC) industry. While there is unlikely to be any pushback on the deployment of these solutions because of the issues surrounding the Note 7, it is likely that we will see heightened focus on a particular subset of the market – portable wireless in-flight entertainment (W-IFE).

For a while now, some voices have expressed concern that these battery-powered boxes may also represent a fire hazard, cautioning that companies offering these products are operating in a market that could quickly close up if an incident occurs. Clearly, any energy storage device carries some sort of risk and this applies equally to battery-powered portable W-IFE as it does to laptops and other PEDs. Vendors of these devices have been quick point out that they rigorously test hardware to comply with the Transportable Pressure Equipment Directive (TPED) and other standards as they become adopted.

AirFi, the leading supplier in the portable W-IFE space, has repeatedly stated that the Dutch Aerospace/Defense Laboratory has tested its products and concluded that: “It is not a source of unacceptable interference for the aircraft electronics and therefore can be used onboard aircraft safely”. Additionally, AirFi’s units contain specialised batteries that can cope with air pressure. If a battery is not functioning as it should, the system shuts itself down and stores the information. Others reportedly offer self-extinguishing mechanisms. Even so, there are protocols in place for addressing burning PEDs that all flight attendants are aware of.

Portable W-IFE vendors should not worry too much. None would be in the industry if they brought to market sub-standard devices and we’ll doubtless hear of many new developments in this space at next week’s APEX Expo in Singapore. One thing’s for sure – passengers will find a way to move on and adapt. The word “nomophobia” has entered common parlance and refers to the fear of being out of mobile phone contact (I even saw a t-shirt for sale with the word and its meaning emblazoned across the front yesterday) . Such is the attachment to obtaining the latest and greatest technology, some will already be investigating their next replacement phone as opposed to worrying about the impact their current device could have on a flight.

Valour Consultancy will begin updating its report on W-IFE in 2017. In this new and improved edition, we’ll also take a look at the embedded market to provide an all-encompassing view of the market. Is there a data split or trend that you’d like us to focus on in more detail? If so, do please get in touch to find out more about our participant program, which is a way to shape our report scopes up-front.

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On an Air France flight from Marseille to Paris recently, I couldn't help but notice a striking addition to the standard safety briefing. "Ladies and Gentlemen, due to the recent safety issues with Galaxy Note 7 devices, we ask passengers to ensure your device is completely switched off and stored away for the duration of this flight". This is perhaps not one of those statements that will cause much alarm for seasoned passengers. Such personal alarm will always be reserved for "brace, brace". However, behind the polite tone of each air flight attendant that delivers the above statement, is a very nervous airline. And rightly so! The World Wide Web is full of visual evidence backing up the need for the aviation industry to throw everything into ensuring issues do not arise in the air. Indeed, one flight has already had a lucky escape and we’re now seeing requests not just to switch off the plagued smartphone, but to ensure that people don’t travel with it all. Samsung has even opened "swap and drop" booths at major Australian airports where Note 7's can be traded for the Galaxy S7 Edge. The U.S. Federal Aviation Administration (FAA) has issued an emergency order to ban all Samsung Galaxy Note 7 smartphone devices from air transportation in the United States and Japan’s transport ministry quickly followed suit. As a result, many airlines across the globe are prohibiting passengers from flying with the device for fear that it may catch fire mid-flight. Such fear has caused Delta Air Lines to accelerate pre-existing plans to fit planes with fire-containment bags. The likes of Alaska Airlines and Virgin America have already adopted the bags, which are capable of sealing up an overheating smartphone or laptop battery. [fusion_builder_container hundred_percent="yes" overflow="visible"][fusion_builder_row][fusion_builder_column type="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" spacing="yes" background_image="" background_repeat="no-repeat" padding="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="no" center_content="no" min_height="none"] [caption id="attachment_2008" align="aligncenter" width="500"]Emirates urges its passengers to carry switched-off Note 7's in cabin baggage only. Emirates urges its passengers to carry switched-off Note 7's in cabin baggage only[/caption] Following relaxation on the use of personal electronic devices (PEDs) in flight, this issue has brought a very significant con to the table. Any device or object that poses the potential risk of starting a fire onboard an aircraft in flight is something authorities will simply not tolerate. Questions that airlines and others are sure to be asking at this point in time include:
  • "Is this a one-off, isolated to the Samsung Galaxy Note 7?”
  • “What is the potential for other PEDs to have a similar defect?"
  • “Are other battery-powered devices at risk?”
At this point in time, it looks like this particular issue is isolated to one device alone. That’s not to say that other phones haven’t caught fire. They have. Several iPhone owners, for example, have allegedly suffered nasty burns from exploding devices. The exact cause of the Note 7 issue is not known but is said to relate to a sub-optimal assembly process. Fortunately, a combination of the corrective actions by Samsung (i.e. recalling every single Note 7) and the response of the aviation industry seems to have done enough to ensure no device has gone up in flames mid-air. At Valour Consultancy, we’ve been asked to provide our perspective on where this leaves the in-flight entertainment and connectivity (IFEC) industry. While there is unlikely to be any pushback on the deployment of these solutions because of the issues surrounding the Note 7, it is likely that we will see heightened focus on a particular subset of the market – portable wireless in-flight entertainment (W-IFE). For a while now, some voices have expressed concern that these battery-powered boxes may also represent a fire hazard, cautioning that companies offering these products are operating in a market that could quickly close up if an incident occurs. Clearly, any energy storage device carries some sort of risk and this applies equally to battery-powered portable W-IFE as it does to laptops and other PEDs. Vendors of these devices have been quick point out that they rigorously test hardware to comply with the Transportable Pressure Equipment Directive (TPED) and other standards as they become adopted. AirFi, the leading supplier in the portable W-IFE space, has repeatedly stated that the Dutch Aerospace/Defense Laboratory has tested its products and concluded that: “It is not a source of unacceptable interference for the aircraft electronics and therefore can be used onboard aircraft safely”. Additionally, AirFi’s units contain specialised batteries that can cope with air pressure. If a battery is not functioning as it should, the system shuts itself down and stores the information. Others reportedly offer self-extinguishing mechanisms. Even so, there are protocols in place for addressing burning PEDs that all flight attendants are aware of. Portable W-IFE vendors should not worry too much. None would be in the industry if they brought to market sub-standard devices and we’ll doubtless hear of many new developments in this space at next week’s APEX Expo in Singapore. One thing’s for sure – passengers will find a way to move on and adapt. The word “nomophobia” has entered common parlance and refers to the fear of being out of mobile phone contact (I even saw a t-shirt for sale with the word and its meaning emblazoned across the front yesterday) . Such is the attachment to obtaining the latest and greatest technology, some will already be investigating their next replacement phone as opposed to worrying about the impact their current device could have on a flight. Valour Consultancy will begin updating its report on W-IFE in 2017. In this new and improved edition, we’ll also take a look at the embedded market to provide an all-encompassing view of the market. Is there a data split or trend that you’d like us to focus on in more detail? If so, do please get in touch to find out more about our participant program, which is a way to shape our report scopes up-front.[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]