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Flightglobal's journalists and staffers are renowned in the aerospace industry for being among the hardest working, most dedicated and congenial group of people one could ever hope to meet. I'm not exaggerating when I say that some of the most thrilling moments of my life - and some of the most uproariously funny moments - happened during the near 12 years I have worked at this company. There were days, during conferences and air shows, that I thought my side was going to split open from laughing so hard with my British, American and Singaporean comrades, who, let it be stated for the record, have turned dry, sarcastic humor into an art form.

I am extraordinarily grateful for all the opportunities provided to me by Flightglobal - the ability to write for its esteemed magazine and online titles, to jump behind the shaky camera and in front of the (unforgiving) high-def camera, and to bounce around the aircraft static displays at some of the world's greatest air shows. More than anything, however, I am grateful for having been afforded the autonomy to write this blog uncensored.

It might surprise you to know that, during the early days, Flightglobal's decision to let its journalists blog was perceived by some industry stakeholders as risky. I'm sure a few of my managers questioned their own sanity after reading some of the more, errrr, indelicate posts that appeared on Runway Girl. But they never once told me to 'tone it down' or 'stop'. Nor did they ever take out the proverbial editing pen. Perhaps they figured they would be wasting their time in trying to tame a flame-haired Irish American. Whatever their reason for restraint, I thank them. 

Free to explore the parts of this industry that interested me the most - and to have some serious fun while doing so - I found myself gravitating towards, and writing about, the tremendous innovation happening in the world of in-flight entertainment and connectivity (IFEC), aircraft cabin interiors and the overall passenger experience. With a passion for this industry (a passion bordering on addiction, some might say), and a deep respect for the men and women who are bringing humanity back to air travel, I have accepted an offer to become Editor in Chief of the Airline Passenger Experience magazine and APEX media platform.

I am ecstatic to be able to take on this new challenge, and focus my energy on covering the passenger experience. But I will always cherish my time at Flightglobal and the lifelong friends I have made there. My final day at Flightglobal is tomorrow, 30 November. I'd like to thank all of the dedicated readers of this blog, who oscillate between giving high praise and doling out good tongue lashings. You know where to find me.

Having read my recent blog post, 'SOMEBODY is making money on in-flight connectivity', research firm Northern Sky Research (NSR) felt compelled to add a little color to its report about the Ku-band sector, and in so doing, dropped a few potential nuggets. Improperly installed antennas? Server overloads? Could this explain why some user experiences of Ku haven't been so rosy?

Here is what senior analyst  Claude Rousseau told RWG:

- NSR forecast is for a ten-year period and the planned installation rate for Ku-band in the next five years is the highest we've seen (not sure if this is historical but what we track is shipped and installed). The forecast is based on units installed only as these are (theoretically) generating traffic thus revenues, either from the cabin or from the crew. Thus we do not differentiate between revenues coming from the passengers or from the crew.
 
- The business models for commercial in-flight connectivity today is still very much in flux as you know, which is normal for an emerging service. I would love to have some hard numbers from the various models but it seems airlines and service providers are shy about that and these change from one airline to another. From what I gathered, most often the service providers sell the equipment + airtime (bandwidth) bundled together to airlines. Suffice it to say that the (bad) experience of 'giving' the equipment as OnAir did to Ryanair has put that model to rest  (if Row44 is paying for SW equipment, then too bad for them). Furthermore, our research shows that in the start-up phase, revenues from passengers will vary widely because of discounts and roll-out hiccups (improperly installed antenna, overload of servers, etc.).  NSR services revenues forecast is based on industry figures we've been able to gather through interviews and primary research for services on a per-unit basis (and again for all segments) which means that these may vary accordingly by region and by type of frequency (L- vs Ku-band).
 
- The equipment market is still very fragmented and prices are still high compared to annual revenues per antenna but there has been a fierce battle to bring it down substantially as more airlines have issued RFPs. Our data shows that over the past five years, this has come down by more than 40% for a typical Ku-band antenna system.

- Manufacturers of aeronautical equipment systems are making very little money in this if they remain pure players (thus your analysis is correct if it is strictly aimed at commercial airlines).  Unless they have a large fleet to equip, they often have other government or business jet revenue streams or are part of a larger group where satellite connectivity is a 'must' for the company to eventually tap passenger revenues (and also gain more legs from R&D develop from other segments). Many have 'admitted' indirectly that they are unable to rely so far on revenues from aeronautical equipment and 'branched-out' into other products or services for maritime (OnAir) and land-mobile (Starling) platforms, if they have not been acquired (ARINC by Viasat) or considered throwing in the towel altogether (MELCO).

- Finally, there is a misconception that long-haul flights will close the business case for commercial in-flight connectivity. NSR has been evaluating this market for 10 years and we continue to believe that regional routes will gather more revenues due to the larger fleets, but this will also mean more equipment to be installed and that is where industry efforts (eg. volume discounts) should go to keep the trends we see going forward.

"IFE isn't that important anymore. I mean, seriously, all anybody really wants to do is use their own iPad in flight."

I hear this statement or a variation thereof and I sigh. It is inaccurate, short-sighted, and, dare I say it, betrays a level of ignorance.

The IFE industry is evolving to accommodate tech-savvy travelers. That means we are seeing new in-flight connectivity and streaming video solutions come to bear (or, if Ryanair's O'Leary has his way, come to bare) as well as Galaxy Tab and iPad-based portable IFE distributed to passengers. 

But major contracts for embedded audio/video on demand (AVOD) systems are still being signed by airlines, particularly the long-haul variety.

A good case in point is Etihad Airways, which today announced plans to spend more than $1 billion - that's billion with a 'b', folks - on IFE and connectivity with Panasonic Avionics over the next ten years. You could buy a small fleet of NEW aircraft with that money, people.

The carrier sees a requirement to keep its passengers entertained via the same seat-back screens that so many suddenly-hot-on-the-scene industry "experts" believe will be antiquated in five years.

Showing that Panasonic's current-generation eX2 IFE system still has plenty of life to live (though no doubt in 'Fusion' slim screen iterations), Etihad will install the platform on its new Airbus A380s, Boeing 787s, and Boeing 777-300ERs, while Panasonic's Android-based eX3 solution will be fitted to the carrier's Airbus A350 aircraft. Some 16 Etihad aircraft are already equipped with eX2.

But, lo, Etihad will offer these IFE systems in conjunction with the widebody fleet-wide installation of Panasonic's Ku-band satellite-supported in-flight Internet and live television, as well as mobile connectivity via partner AeroMobile.

Etihad CEO James Hogan says:

"It is essential that we offer the most engaging and dynamic in-flight entertainment for our guests - especially on long-haul flights. We went through a comprehensive technical and commercial evaluation of what was out there in the market. Panasonic will support Etihad Airways' commitment to delivering a system that will enable us to stay at the leading edge in this all-important area."

Crucially, however, the Etihad deal will include "a full service maintenance contract".

For various reasons, MRO is generally not considered the sexiest part of the aviation industry (though I'd argue that some of the mechanics are...oh, okay, I'll be good.)

However, in addition to IFE manufacturers, MRO firms from all over the world are cashing in - or preparing to cash in - on the business being generated by IFE and connectivity equipage and long-term maintenance.  Just ask the MRO providers that attend Aviation Week's annual MRO Americas conference.

Know your way around an IFE system? Then call Panasonic or jump on its web site because the California-headquartered firm is just one of myriad IFE companies in the midst of a hiring push.

And, in light of Etihad's contract, Abu Dhabi is sure to be the next hot spot for IFE installation and maintenance work.  

So embedded IFE is producing jobs, 10-year MRO contracts, $1 billion-plus deals, big news headlines and plaudits from CEOs, and you still think it's making an early exit? Take off the blinders, my friend.

SOMEWHERE OVER NEVADA: I'm on board a Virgin America Airbus A320 flying from Washington Dulles to Los Angeles, where the Airline Passenger Experience Association (APEX) is holding a technical committee meeting this week at Walt Disney Studios.

Considering the fact that I'll be covering a conference about the airline passenger experience, I could hardly be flying on a more appropriate ambassador than Virgin America, which offers an award-winning in-flight entertainment system, Gogo in-flight Wi-Fi and, importantly, in-seat power.

As you'd expect, I'm making full use of the in-flight entertainment and connectivity on offer. I've ordered an Artisan cheese meal through the seat-back monitor and dutifully swiped my credit card; I've plugged my Macbook Pro into the in-seat power plug and it is juicing up while I write this blog and clear other work;  I've plopped down $12.95 for a Gogo session to stay connected, and I'm trying to catch up on snippets of my one trash TV indulgence, 'The Real Housewives of Beverly Hills' on satellite television (easy now).

Unfortunately, the speed of Gogo on this flight is far from ideal. I've conducted a number of speed tests via www.pingtest.net - here's the latest result - but the tests are probably unnecessary. I need only jump onto any web site with bandwidth-heavy applications to ascertain that things are slooooooow going.
 
While I'm certainly grateful to be connected in flight - with the ability to tweet, post to FaceBook and access email - I'm not being nearly as productive as I had hoped.

For me, today's connection speed serves as yet another gentle reminder that, when it comes to bandwidth, we passengers can't get enough, and connectivity service providers are having a difficult time keeping up.

It certainly makes sense for Gogo - and other connectivity stakeholders - to offer a streaming video service to passengers as a means of drawing them away from a live connection when and where possible.

Equally, I can see why some airlines - including Virgin America - are not yet ready to cease offering embedded (or portable IFE) solutions, though Virgin America has tabled a plan to bring wireless IFE to passengers' own devices as well as new seat-back screens, a different direction than its current headend server-based embedded IFE offering.

At present, connectivity is largely augmenting IFE rather than replacing it, or is being offered on aircraft that traditionally did not offer IFE.

During the recent APEX conference and exhibition in Seattle, I talked to digEcor marketing director Adam Williams about some of these topics. Check out my interview below.

I'll have an opportunity to dive into a fuller discussion this week with digEcor and other players in the field, as I'm moderating the wireless and portables panel at the APEX technical committee meeting.

Can we speed up Virgin America? I want to get to LA! :-)

Readers of this blog knew a week ago that United-Continental was planning fleet-wide connectivity, and had tapped Panasonic Avionics for a portion of the business. But it was still great to see confirmation of the news today from the horse's mouth as well as some precious details about the mammoth deal, which calls for the installation of Panasonic's eXConnect system on United-Continental Boeing 747s, 757s, 767s, 777s, 787s (!!!) as well as Airbus A319s and A320s.

In so doing, United-Continental has become the first US carrier in recent years to announce plans for bringing connectivity to overseas flights (a decade ago United, along with Delta and American, scuttled plans to invest in and offer Connexion by Boeing's now-defunct connectivity service in the wake of 9/11).

United-Continental's announcement comes just over two months after the Federal Communications Commission (FCC) formally granted blanket authority to Panasonic for domestic operation of up to 50 technically identical transmit/receive aircraft earth stations in the Aeronautical Mobile Satellite Service (AMSS).

And it follows Continental Airlines' earlier announcement to bring JetBlue subsidiary LiveTV's Ka-band connectivity service to some 200 Boeing aircraft being fitted with the LTV3 live television system. 

Of course, United-Continental has plenty of incentive to get the ball rolling on fleet-wide connectivity equipage - it has distributed Apple iPad-based EFBs to pilots, and ultimately intends to bring real-time applications to the devices; its Star Alliance partner Lufthansa is equipping its own fleet with Panasonic's eXConnect, and is bringing real-time EFB to pilots; and its competitors in the United States, namely its former Connexion buddies Delta and American are big-time users of Gogo's domestic air-to-ground (ATG)-based connectivity in the United States. Indeed, Delta, which offers Gogo across its domestic fleet, and is fitting its regional jets with the service, has its own big plans for driving operational benefits from its connectivity pipe.

But will Delta, or American for that matter, sit idly by and watch as United-Continental steels the glory of being the first US carrier to offer Wi-Fi across the Atlantic? I wonder.

We know that Gogo has been quietly testing an Aerosat Ku-band antenna in its offices; and we know that Delta has said it ultimately plans to offer connectivity on overseas flights. Perhaps United-Continental's announcement will give Delta a little foot in the rear to move on equipping its long-haul fleet (or maybe Delta doesn't need a foot, and will manage to trump United by getting Ku onto some of its aircraft sooner). United-Continental says installs of eXConnect will begin in mid-2012 so There Is Still Time for Delta (or American or another US major) to surprise.

Meanwhile, this Runway Girl is feeling a little deja vu today. You see, I was there when Connexion by Boeing announced its partnership with American, Delta and United on June 13, 2001 at the Press Club in Washington DC, and I wrote the following piece for Air Transport Intelligence (now known as FlightglobalPro). For history buffs, check out the final pars of my article to see how Airbus had started building a competitive product to Connexion. The venture ultimately joined forces with SITA to became OnAir, which today has become one of Panasonic's most formidable competitors for in-flight connectivity on international routes.

Oh wait, and before I forget - CONGRATULATIONS United-Continental! You've given this reluctant US Airways frequent flyer something to smile about today.

Boeing teams with US majors for Connexion joint venture
Mary Kirby, Washington DC (13Jun01, 18:20 GMT, 528 words)

In a departure from its original strategy, Boeing has teamed up with American Airlines, Delta Air Lines and United Airlines to market its Connexion airborne Internet service under a new joint business venture.

Each airline has signed a letter of intent to take an undisclosed equity stake in the Connexion program as well as to equip a total of 1,500 aircraft with the service. Boeing will maintain overall management responsibility as majority shareholder of Connexion.

Speaking to reporters in Washington DC today, Connexion president Scott Carson confirms the new venture will retain the Connexion by Boeing name and will continue to develop broadband services for inf-flight e-mail, Internet access, corporate intranets, live television and other services.

But today's joint venture deal means the structure of Connexion will be differ from what Boeing had originally envisioned when it unveiled the program in late April 2000.

At that time, the company outlined a plan to act as the sole seller of the service. Boeing discovered, however, that airlines were nervous about the costs and risk involved in equipping their aircraft on a large scale.

Connexion president Scott Carson says Boeing now believes "it will take this kind of collaboration" to bring the service to the marketplace.

"Each of the airlines and Boeing bring together a critical mass to help ensure success for this service with airline passengers and the global airline industry," he says, adding that Boeing and the airlines each will contribute funding, certain intellectual property, and other assets.

As a collaborative venture, Connexion will also work to sell the service to other carriers. "We are in discussions with a wide range of other airlines and expect that other announcements are forthcoming," says Carson.

After definitive agreements are signed, the airlines intend each to equip 500 aircraft with Connexion's broadband Internet connectivity service. Retrofits will begin in the second half of 2002, with each carrier agreeing to initially test the service on ten aircraft.

American vice president of corporate development and treasure James Beer tells ATI that all three carriers are "looking to make Connexion available throughout the cabins" of their aircraft. Beer says American wants to eventually equip its entire fleet with the system. Meanwhile, Delta and United appear more comfortable installing Connexion on their long haul fleets only.

Boeing does not reveal the anticipated cost of installation, but Carson assures "the scope of the installations will allow the venture's system and service to be designed and developed for reasonable costs".

Delta senior vice president of technical operations Ray Valeika points out that the Connexion service will "open up" a range of other possibilities to the carriers, potentially allowing them improve communication with crew in-flight concerning weather, maintenance and logistical issues.

Boeing is one of a number of company's seeking to provide broadband or to optimize narrowband data services to the airlines. Airborne Internet service provider Tenzing Communications, in which Cathay Pacific has a small stake, has been making considerable progress in the market.

Airbus Industrie is buying a sizeable stake in Tenzing and Airbus executive vice president customer affairs John Leahy has stated his company will make a key announcement about its in-flight entertainment strategy in June.
Source: Air Transport Intelligence news