October 2011 Archives

How do different in-flight connectivity systems stack up against each other? Aircell, the business aviation communications unit of commercial provider Gogo, has provided the #bizav industry with a new handy dandy report.

Please note that the peak speeds listed are just that - the peaks! All in-flight connectivity service providers are seeing speed valleys, including Gogo, which recently received the following tweet from a user: "Dear @gogoinflight: 110kbs downstream? If you're going to take me back to the mid-90s, please at least play some Nirvana or something." [We're an insatiable bunch, eh?]

Aircell's full report is very informative, so do check it out here. See specifics about SwiftBroadband pricing for #bizav on page 26, Ku pricing on page 36 and ATG on page 46.

UPDATED to note that LiveTV is still the Ka-band connectivity supplier for United-Continental's domestic Continental fleet.

Also, United-Continental says it will offer Wi-Fi across its ENTIRE mainline fleet.

With Panasonic winning United's business (and LiveTV retaining the Continental contract), the United States domestic market has four connectivity providers - Gogo, Row 44, LiveTV and Panasonic. Can they all survive?

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United-Continental today announced that it has committed to offer in-flight Wi-Fi across the ENTIRE MAINLINE United fleet, and promised more details later.

But multiple sources tell RWG this morning that Panasonic Avionics has won the massive deal, and that it could be even bigger (i.e. it could include long-haul aircraft!).

It's "huge", says one source.

I'm trying to scratch up more details about this mega-deal right now, so stay tuned!

Panasonic's connectivity system operates over Ku-band satellites. United-Continental previously announced it will offer LiveTV's Ka-band system on the Continental portion of its domestic fleet.

UPDATED to include the following comment from an industry source (which, in short, means the cost to airlines is far less). "The real cost for airlines is a lot different - unsurprisingly since a) there is no existing revenue to undermine and b) the volumes are drastically different. The current offer to key airlines (like Singapore) is to match the price of Ku with SBB if they commit to staying with Inmarsat through the transition to GX. That means an effective price of $0.20-$0.30 per Mbyte, not multiple dollars per Mbyte. Not clear how they will price for cellular services, but the key is to make a data-only service available at a realistic flat rate."

Inmarsat has not confirmed these figures.
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I haven't even called Inmarsat exec Lars Ringertz about this blog and I can already hear him telling me: "Mary, those are not the prices that Inmarsat charges its partners. We don't control our partners' pricing." Except Lars would say it more eloquently than that, and with that lovely accent of his. 

Of course, Lars - or the Lars in my head - is right. But it's also true to say that the new pricing we're seeing for SwiftBroadband-supported in-flight connectivity services are reflective of Inmarsat's decision to dramatically reduce the cost of SwiftBroadband.

The result is that Wi-Fi via SwiftBroadband, whether for commercial or corporate aircraft, is becoming more attractive to some operators. OnAir, the Airbus/SITA joint venture, is far and away the leader in this space, with a customer list for SwiftBroadband-based connectivity that includes Emirates, Singapore Airlines, TAM and many others.

Panasonic's partner AeroMobile offers some SwiftBroadband-supported solutions, although it is now focused on offering mobile connectivity via Ku (while Panasonic offers Internet via Ku).

Finally, ARINC has brought a SwiftBroadband-based Wi-Fi offering to market, and has been talking to Panasonic about potential pairings (think Panasonic IFE with ARINC Wi-Fi).

So, with all that said, I invite you to watch the following video, 'Pricing for Swiftbroadband connectivity revealed'. The figures quoted pertain to corporate aviators, most particularly the Satcom Direct service that will be provided Honeywell on its Dassault Falcon 900EX, but you get the picture. 

Can portable in-flight entertainment (IFE) providers survive in an environment where airlines are fitting their aircraft with in-flight connectivity and looking to support passengers' own devices? Not if their businesses are based solely on the provision of portables, suggests IFE Services managing director Andy McEwan.

"I am a believer that within an IFE strategy of an airline, portable devices can fit into that strategy somehow, but it has got to be the individual's portable device. [Generally]  I don't think it's a device that's provided by an airline or a third party," McEwan told RWG in a recent interview.

"From the limited knowledge I have of companies whose core business is the provision of portable devices, I don't think there are many that actually make money. I think probably most of them lose money and that's what they do, Monday to Friday, five days a week. So, something doesn't smell right to me."

Those are some strong words from a company that, in addition to providing airlines with IFE audio/video content and management, supplies a portable IFE solution based on Sony's PSP gaming device. And, as you'd expect, McEwan caveats his comment, saying portable IFE devices still play a role in "certain situations".

Says McEwan:

"So lets say you have a long-haul, low-cost airline - and we've signed a client in Asia with that type of characteristic - I can see it working then. You have 200 or 300 people on board an aircraft, there is no IFE, they're flying 10 hours to London, it's a portable device, it's rented out, and there is a solution there. I can see it working in that situation and some of our clients kind of do that today but the ones that are successful at it have very good product management; they typically product manage everything themselves. As soon as you involve a third party, like a catering company who is doing the loading onto the aircraft, charging up the devices, you're potentially going to have problems."

Portable IFE (and tray-table embedded IFE) based on Samsung's latest Android tablet, the Galaxy Tab 10.1, received a lot of attention at APEX, even though Apple had already successfully won an injunction preventing its sale in Germany at that time (and later Australia). Naturally, I wanted to get McEwan's take on whether the lawsuits would ultimately hurt the business case.

"...I wouldn't have thought an airline making a decision about portable devices in the short-term particularly in Europe is going to progress with the Samsung tablets," he says.

As for iPad-based portable IFE, the well-documented challenges associated with that scheme serve as "the perfect example of how technology moves so slow in the airline industry", according to McEwan "Let's take ourselves back to April 2010, Hamburg - Aircraft Interiors. [There was] lots of fanfare and the iPad is a great product. But how many airlines today, 18 months on, are actually using an iPad solution, one or two or three?"

Meanwhile, in the 15 months since McEwan took the position of managing director at IFE Services, the UK company has rapidly grown its client roster, delved into marketing its brand through social media, and positioned itself to participate in industry consolidation. You can read more about IFE Services' growth strategy at FlightglobalPro.

Last month at Airline Business' alliances, joint ventures and partnerships conference in Rome, Estonian Air CEO Tero Taskila announced that the carrier will be the first in the world to launch a social loyalty programme fully-powered by social media.

Prodded by RWG from the audience for details, Tero confirmed that the airline worked with airline social media powerhouse consultancy Simpliflying to make the unique programme a reality. Within hours, the news started to spread via the same social media channels that Estonian will utilize for its new loyalty programme. 

I've asked Stephanie Gehman, aka Airport Girl, to tell us about what Estonian is doing. Stephanie is a marketing manager with a passion for building relationships and brands via traditional and emerging means. In this role at Harrisburg International Airport she specializes in numerous touchpoints ranging across marketing, social media, technology, advertising, digital communication, and public relations.

Stephanie writes:

A small airline is taking a big bite out of the social media pie by creating a first of its kind initiative. Estonian Air has announced that in late October it will launch a social loyalty program for customers.

Estonian Air plans to use a Facebook platform to host the programme and to reward fans and customers via the programme for actions as simple as reviewing the airline on Facebook or tweeting a deal on Twitter. While the programme does include the traditional elements of airline loyalty programmes, it is also focused on rewarding brand advocacy in Estonian Air customers as well.

Estonian Air cites that airlines are trying to find new ways to make air travel more attractive and rewarding for even those who are not frequent flyers. The future of airline loyalty is now a pressing question given to the growth of social technologies. In this arena, Estonian Air has partnered with SimpliFlying to build and shape its loyalty programme.

"Today 88% of frequent flyers use Facebook and they are twice as active as ordinary Facebook users. Over 70% of them would like to be part of a social loyalty programme too. Estonian Air's pioneering effort in this field will intensify a pool of advocates for engaging with the airline online. The lessons learned from this can potentially change the course of airline loyalty programmes globally," says Shashank Nigam, CEO of SimpliFlying.

Innumerable social media consumers rely upon the recommendations, experiences and feedback of friends and family for their future product and service purchases. The factions of those social media consumers that travel, and travel frequently, are making social networking a part of their air travel routine. 

Many air travelers are tweeting, blogging and posting to Facebook about their airline experiences.  Estonian Air seeks to capitalize upon these trends and wants to rewards consumers online behaviors with offline rewards.

"In addition to rewarding and sharing recognition to our fans and customers, we also see it is an innovative way to bring Estonian Air and Estonia to the world map. Estonia is a small market and in order to provide good connections at reasonable price for Estonians, the airline needs to also attract connecting traffic from outside Estonia. Social Media is one of the most effective ways to market and promote brands across the borders," said Tero Taskila, the CEO of Estonian Air.

As an airline passenger, what's important to you in a loyalty programme?  Would you join a program that rewards based upon your social sharing habits? Do you think this new social loyalty programme will take flight or be ground delayed?

Tero and Shashank further explain the initiative in the following video:

Estonian Air makes history in loyalty marketing from Estonian Air on Vimeo.

(Photo above from Simpliflying's SlideShare presentation: "Why the future of loyalty programmes will be powered by social media.)

The company that used to be SO difficult for me to nail down, Row 44, is now ready to talk...a lot! I recently sat down with Row 44's chief commercial officer Howard Lefkowitz, who proceeded to drop the following super-juicy newsy nuggets of love:

1) Some 200 Boeing 737s in Southwest Airlines' fleet are expected to be fitted with Row 44's Ku-band in-flight Internet solution by the end of this year, and Row 44 expects to have most of the installs done by the end of next year.

2) Row 44 is "talking to folks about some hybrid solutions where there is a little bit of overhead, a little bit of Wi-Fi, a little bit of their own device and so forth. Some, which have seat-backs, and how to do that kind of thing, so a little bit of this and a little bit of that."

3) A total of 40 Norwegian 737s are expected to be fitted with Row 44 by the end of this year. The company is in talks with other European carriers to bring its solution on board their aircraft.

4) Real-time credit card transactions on Row 44-fitted aircraft are around the corner!

Check out my interview below. Yes, that's me slurping one of Row 44's naughty tequila drinks at its APEX exhibit. Don't judge!

Since we're all running in similar circles these days, you've no doubt seen the report from Travelzoo's meta-search engine Fly.com which suggests that fewer than 5% of passengers want in-flight mobile and Internet access based on a survey of frequent travellers.

Furthermore, the September survey "revealed that more than 30% of people would actively avoid travelling with an airline that offered such services", according to Fly.com.

Whoa, whoa, whoa there little doggie. Say what?

Moving past the sensational headline of Fly.com's press release, let's take a look at the actual survey. In tiny print at the bottom of the statement, you'll find that the source of the information is: "Travelzoo European subscriber survey, October 2011, 50,000 UK subscribers were asked at random, n=1359. The survey was completed online using QuestionPro software and no incentives were offered."

Okay, so we know that the survey was limited to British travellers, and only 1,359 of them participated. But did you know that most of the British travellers surveyed have never even had the opportunity to use in-flight connectivity?

I asked Fly.com to provide me its raw data for the survey. The first question asked was: "Have you ever flown on a plane where you have been allowed to use a mobile device for either internet or making phone calls during the flight?"

The overwhelming 86.45% majority of respondents answered in the negative. Yet, many of those who answered in the affirmative didn't remember where they had tried the connectivity. Some even referred to airlines or routes that don't offer true in-flight mobile or Internet connectivity, but rather narrowband data services through the IFE or onboard telephony.

Thankfully, some respondents did recall that they were able to use their mobile phone on Emirates, Ryanair (before the carrier switched its service off), and British Airways (A318s to NY), among others.

But, in light of what we now know, I think it's fair to say that the data does not tell the whole story. I'm not even going to address Fly.com's question about whether the same passengers who have not used in-flight connectivity think mobile phones put the safety of a plane at risk!!

Sigh.....

These kinds of surveys are exasperating, but they underscore the importance of informing the general public about what in-flight connectivity options are available to them, and how the systems are installed with safety in mind.

I also stress to airlines that managing expectations is crucial; if you are offering in-flight Wi-Fi but not a true high-speed connection, then be up front with your passengers (and reasonable with your pricing).

If you're offering in-flight voice, be clear about your on board etiquette rules.

And if you're reading surveys like the one above to help you decide whether or not to bring in-flight connectivity on board your aircraft, come on back and read this blog for the real story.

P.S. Sorry about the pace of my posts of late. I've been a rolling stone over the past several weeks, with trips to LA, Paris, Seattle, Rome, and Las Vegas (where I got down and funky in blue plastic). Next, I'm off to Dallas, then LA and Dubai. But I assure you I never forget which carrier offers in-flight connectivity on my trips. My last connected flight was on board an Alaska Airlines Boeing 737 with Gogo. And it was FANTASTIC! Note to the Brits. 

While companies seeking to turn the Apple iPad into portable in-flight entertainment devices have encountered some teething problems, there is no stopping the tablet from becoming a major fixture in the cockpit.

Keen to support its customers' preferences, ARINC Direct has released a new iPad app that provides access to flight plans, weather, NOTAMS and airport charts.

The app proved to be quite a hit at the NBAA show in Las Vegas. I was lucky to be able to pull aside an ARINC Direct executive for a quick tutorial on the new app. Check it out.

LAS VEGAS: It's clear I need to start using a dateline for my blogs, as I hardly know where I'm at in the world these days or even what time it is. My body clock is discombobulated! That didn't stop me from thoroughly enjoying my flight to Vegas yesterday aboard Honeywell's Dassault Falcon 900EX, which has been fitted with the company's newly certified Ovation Select cabin management system (which was simply awesome...more on that later!)

The Falcon is fitted with Inmarsat's Swift64 aeronautical service, and bless, I put the in-flight connectivity system through its paces yesterday, using it to email, post FaceBook updates and tweet on Twitter, and even upload pictures to said social media sites. Yes, it was slow going at times, but I'm told the Falcon 900EX will soon be upgraded to SwiftBroadband.

Who covered the $8/minute cost of Falcon passengers to use Swift64, you ask? That was kindly covered by Satcom Direct. Many thanks!

During the flight, I spoke with Satcom Direct regional manager, satcom technologies Mark Mata about the firm's cool new in-flight connectivity troubleshooting app, which is aptly called...wait for it...MATA. He explains his solution here! 

I love in-flight Internet
Accessing in-flight Internet requires an antenna
Ergo, I love antennas

I was never very good at logic. In fact I received a "D" in the subject in college. I had better things to do at 8am, like sleep off a hangover or watch my boyfriend sleep off a hangover or drink coffee at Eat n' Park before going to sleep. (Oh for a tiny taste of those halcyon days).

My illogical mind makes me either completely unsuited for writing about in-flight entertainment and connectivity OR perfectly suited for covering this often madcap business, which is my roundabout way of bringing you to the topic at hand - the ARINC 791 standard. What the holy hell is that, Mary, err, Runway, and why should I care?

ARINC 791 defines a K-band satellite data airborne terminal unit, and it's the spec that's followed for current Ku-band-supported in-flight connectivity systems. Boeing, for example, has started line-fitting its 777s with Ku, so it is punching holes in its aircraft in the fashion described in the graphic above. 

However, when Inmarsat announced plans to offer a global Ka-band service, dubbed Global Xpress, the London-based satellite giant also promised that Ka antennas could be as small as iPads, which would require a decidedly different spec. Rockwell Collins, which won the exclusive deal to lead the development, production and distribution of user terminals for Global Xpress, has some busy days ahead (they beat out the likes of Thales and Panasonic).

But with an increasing array - ahem - of choices, what should airlines do? Should they fit their aircraft with Ku (and the provisions that come along with that) now, or should they wait for those wee iPad-sized antennas?

Here is what some of the leading industry dudes say about the matter:

Gary Hebb, vice president of strategy, EMS Aviation 

"The reality is that airframe manufacturers will probably want to reuse the radome shapes and sizes that already exist for Ku, and there's little sense in putting a small antenna into a large radome, so yes, Ka antennas will tend to be the same size as Ku.

"However, Ka can support smaller antennas.

"For the same size antenna, Ka has higher gain than Ku.  This means that it has a narrower, more focused beam.  This narrower beam will interfere less with adjacent satellites. So, you can meet the discrimination spec with a smaller Ka-band antenna.

"It comes as a surprise to many that the higher gain of a given size Ka-band antenna is exactly offset by a higher path loss for Ka-band as it travels from the satellite to the antenna.  So, for a given amount of power from the satellite, you receive the same amount of power in a Ka band antenna as you would in a Ku-band antenna of the same size.  While this might seem to eliminate the advantage of Ka-band, two other factors increase the bandwidth that you can cost-effectively support in a Ka-band antenna:

"Ka-band satellites have spot beams, which focus the power more effectively on each user terminal;

"Ka-band has more spectrum available, and the spot beams multiply the spectrum by allowing "reuse" of frequencies.

"So, if you want to keep the same radome shape as for Ku-band, Ka-band can support higher data rates at a lower cost per bit.  If you are willing to change the radome shape, you can support the same data rates, still meet the discrimination requirement and probably still get lower cost per bit, with a smaller antenna."

Leo Mondale, managing director of Inmarsat's Global Xpress

"The variable here is a certified unit, and the easiest way to bring new technology to  market. So, will there be a 791 standard Ka band piece of equipment that fits under the radome designed originally for Ku? Yes.

"The Ku radome needs to be redesigned and re-certified in some cases.

"When doing a retrofit, you may not choose to do 791 and in that way, you're not constrained by a pre-agreed envelope and in that case we have a trade.

"We believe for the same sized terminal, we'll get significantly higher throughput for that terminal. We can do comparable throughput to a smaller terminal.

"I think you'll see both solutions really. For retrofit I think a lot of people may prefer the smaller footprint but Airbus' perspective is driven in many ways by new aircraft, like the A350 and Boeing has the same considerations, so I think you'll see a mix, even a smaller terminal sitting under a larger radome."

Meanwhile, all the peeps you'd expect - Panasonic, Row 44, Airbus, Boeing and Lufthansa - have been participating in a group to standardize Ku and Ka connectivity hardware installations. But, lo, so is Delta Air Lines, which clearly aims to toss either a Ku or Ka antenna on its long-haul aircraft (perhaps with partner Gogo, which is quietly testing a Ku antenna but also has an upgrade path to Ka).

It is merely a coincidence that the 'DL' in my headline - slang for 'down low', yee older fogies - is also Delta's IATA symbol.

(Graphic above taken from a presentation made by DDDi's Peter Lemme at the March 2010 APEX single focus workshop.)

Competition is essential to any industry, and it's truly wonderful to see so many new players in the in-flight entertainment and connectivity (IFEC) space. Garnering some of the big news headlines these days are airline deals for wireless in-flight entertainment and seat-centric in-flight entertainment systems. Both solutions - offered together or in standalone form - are dramatically less expensive than the traditional embedded platforms flying on aircraft today.

But the leading providers of embedded IFEC systems are not sitting on their hands. Far from it. They are coming out fighting. Here is what market leader Panasonic Avionics is doing in a bid to remain the elephant in the room. Will it succeed?

I've just returned from a whirlwind trip to Rome, where I was honored to have the opportunity to speak about one of my favorite topics - in-flight connectivity - at the ERA General Assembly (you can find my full presentation via this link).

As you can imagine, intra-European regional operators are not exactly chomping at the bit to add satellite-supported connectivity systems to their regional jets and turboprops at a starting cost of $500,000 (no, I'm not talking about your price tag, Iridium OpenPort).

But European regionals' reluctance to retrofit underscores the need for airframers to offer connectivity as a linefit option. Airbus is the furthest along in this regard, as it offers L-band SwiftBroadband linefit on Airbus types, including the A320 family. Boeing is understood to be poised to do the same for the 737 (and for the 787 in 2012), and the US airframer recently confirmed it will offer Panasonic's Ku-band system on its 777s .

Pertinent to the ERA crowd, however, Bombardier and Sukhoi have said connectivity is in their sights, and I'm hopeful after last week that ATR is giving it some thought as well.

If regional airframers take clear steps towards getting connected, and sparing regionals the huge cost of retrofits, it seems they may have a champion in ERA director general Mike Ambrose, who believes European operators will need to consider basic connectivity solutions within the next five years; and that cockpit applications may drive equipage.
   
Of course, in-flight connectivity is already shaking up the embedded in-flight entertainment space. But so too are new wireless IFE and seat-centric solutions. Indeed, a number of new offerings are giving the big dogs like Thales and Panasonic a run for their money.

I'd imagine that the prevalence of clunky, legacy, server-based IFE systems and shabby interiors - as seen here on my US Airways flight to Rome - help IFE newcomers make a case to would-be airline customers (even though Thales and Panasonic now offer some terrific-looking new integrated IFE/seat systems).

One carrier making the switch to a new IFE  hardware provider (but keeping Recaro as its seat supplier) is Virgin America. A standard bearer in the IFE space, the San Francisco-based carrier announced last month at the APEX conference and exhibition in Seattle that it has chosen Lufthansa Systems as its partner in offering a hybrid 'BoardConnect' IFE and connectivity system - wireless plus seat-centric - to passengers.

The carrier also explained why it has moved away from its traditional Red platform, which was developed by Panasonic and CoKinetic. And yes, the carrier is even considering replacing currently-installed Red systems with the new solution.

Check out my videotaped interview below, and take note of what Lufthansa Systems says about seeking offerability for its system on Airbus A320 family aircraft, the type operated by Virgin America. Because just as connectivity gets a heck of a lot easier/less expensive when offered linefit, so too does IFE.