Mary Kirby: June 2010 Archives

It has been a Virgin sort of week. So much so that I'm nearly ready to reclaim my own virginity (not :) 

Has the death knell rung for embedded in-flight entertainment? Virgin American doesn't think so. Not by a long shot.

In fact, the carrier - which is rolling out new upgrades to its IFE system, including 'The Red Store' for onboard shopping to further capture passenger spend - is already mulling the type of next generation system it wants to bring on board its Airbus A320 family aircraft by 2013.

And what type of system is that? A fully connected one! Virgin America calls the project 'Cabin 2.0'.

Key quote from Virgin America president and CEO David Cush:

"We know we want a significant upgrade in hardware, and significant upgrades in bandwidth, and by 2012, or more likely 2013, we'd [like] wider monitors on the airplane, with more functional handheld remotes and keyboards, faster processors, and faster Internet that is integrated into the system from inception, so it really becomes about the capabilities of the platform."

Cush's quote begs all sorts of questions, so read on for my exclusive Q&A with him.

Q You plan to add a connected element via the Aircell Gogo link to your current in-flight entertainment system (with limited social media and real-time credit card transactions). Will Gogo be able to keep pace with your bandwidth demands in the coming years, as you look ahead to both a next generation system and at passenger requirements for in-flight connectivity?
A The simple fact is we are going to need greater bandwidth, faster speeds of uploads in particular, but also downloads, and somehow they are going to have to keep pace with the technology. Three or four years from now, having the speeds we have today, will not be sufficient. The web is getting more and more video intensive and we are going to have to figure out a way to have a bigger pipe and a faster pipe in the next few years. I am confident Gogo will find a solution but if they don't we'll go somewhere else."

Q Has your current system paid for itself yet?
A These systems are long-term investments. They should stay on the airplane as long as 12 years, although we think the hardware life cycle is probably half of that or perhaps a little less. They pay for themselves in a couple of ways. One is that the preference factor for our airline and quality rating for our airline is very high. Certainly the Red system is one of the most visible reasons for that. We have been slow to successfully monetize the system, but we have a lot of momentum now [with the roll-out of new functionality, including The Red Store]. Certainly, the systems in my view have more than paid for themselves. That's why we're looking into what we call 'Cabin 2.0' and we will invest more money in the system and we will do that as it will have greater capabilities and more opportunities to monetize. We would not invest more if we didn't think it was paying off for us now.

Q How much ancillary revenue do you gain from your current system?
A We do track that by flight and we analyze it quite heavily, but we don't disclose those numbers. The ancillary revenue for passengers is [overall] up 40% year-over-year, and we're expecting that type of growth going forward when we add more functionality. "

Q How responsive was hardware manufacturer Panasonic Avionics and software specialist CoKinetic when you said you wanted to upgrade your current system by adding SkyMall shopping, more detailed Google terrain maps, and other new functionality?
A In general they are responsive. Panasonic is interested in our business and knows we are growing and wants to sell us more IFE equipment going forward. CoKinetic is a small company that is responsive to our desires in general. That being said, this is complicated stuff. It's on an airplane, 35,000ft above the earth and none of it is simple, and I'll be completely blunt, even putting in something like shopping took us something like six months longer than we hoped it to. We're used to rapid speed to market, that doesn't always happen with these big complicated IFE systems, and the software it takes to drive them.

Q What do you think of the argument that passengers' own devices coupled with in-flight connectivity will destroy embedded IFE?
A That is like saying the Internet is the death knell of cable television. We think people want the option for having entertainment dished up to them and letting them make the choice.  [The questions to ask are] 'Who owns the transactions? Who owns those customers? And ultimately, who owns those eyeballs.' We've had lots of interesting discussions with the leading thinkers in the San Francisco Bay Area, with Google and with others, on how they view the entertainment and information going forward. People have been saying this for five years [that embedded IFE won't survive]...and it has never gone anywhere. We're a big believer in seat-backs."

Q Will Virgin America ever extend its service beyond the Americas?
A We're starting with Canada in a couple of weeks. That's kind of dipping our toe into it, as it gives us a good feel for the complexities [of international service], and even though Canada is very similar to the US, there are important complexities involving immigration, taxes and customs. But other than Canada and probably Mexico in the next six to nine months, that's pretty much it. We have lots of opportunities here in the united States, certainly in North America, and I would not see us doing too much beyond that. We have Virgin Atlantic doing a great job across the Atlantic and V Australia doing great across the Pacific

It's that time of year again. Flightglobal is gearing up to honor the best and brightest in aviation and aerospace during the Flightglobal Achievement Awards on 20 July at the Farnborough Air Show.

But we need your help.

Nominees for the Leader, Aviator and Innovator of the Year, as well as Flightglobal's Lifetime Achievement Award have already been selected by you and shortlisted by a panel of experts.
 
Now it's your chance to vote from the shortlist in each category to recognise the entries which deserve to win a Flightglobal Achievement Award.

Go to the following link to see who's shortlisted and cast your vote! The Flightglobal Achievement Awards will be presented at the TAG Building, Farnborough. Voting closes 20 June.

On the chance that you missed this video from AIX, here is my interview with Thales VP media services Stuart Dunleavy on why the firm's next generation in-flight entertainment and connectivity (IFEC) system is so special.

Personally, I like that Thales will forgo the usual credit card swipe, and instead will offer a new credit card insert, which "takes into account chip and pin technology...which we see as a very important emerging technology", says Dunleavy. Oh yeah, and that 12.1in screen with HD and touchscreen handheld is sweet too.

To view this video, click PLAY to the right of the screen.

As reported on the Flightglobal IFEC channel and the Wandering Aramean blog, Continental Airlines has opted to postpone its trial of Aircell's Gogo in-flight Internet system on 21 Boeing 757-300s, as it thrashes out strategy with merger partner United Airlines. 

So is the deal dead, RWG?

Not quite. Aircell tells me that its agreement with Continental for the 757-300 fleet "remains in place", but that Continental "has, in effect, 'hit the Pause button' as they work through the merger-integration planning process".

United already operates Gogo on a portion of its 757-200 fleet. So it makes perfect sense that Continental and United are looking at fleet rationalization before deciding on a consistent in-flight service for their merged operation. In other words, I don't think it's time to pick apart Continental's decision to postpone Gogo...yet. 

It is logical to assume, however, that Continental and United are studying all their options for domestic fleet-wide equipage (I mean they've got to do something, since Delta Air Lines is nearly fleet-wide with Gogo, and Southwest Airlines has begun equipping its Boeing 737s with Row 44's satellite-based system).

And, even as it hits "pause" on Wi-Fi, Continental is pushing ahead with equipage of LiveTV's LTV3 system across its Boeing domestic fleet. As of 8 June, Continental had completed 51% of the installations.



As you can see, the LiveTV guys down in Melbourne, Florida have been busy, but they'd be even busier if the merged Continental/United opted for LTV3.

And who's to say the two carriers won't do both Gogo and LTV3? If they want to truly duplicate in the air what's happening on the ground (iPhone or laptop sitting on our laps while we watch TV), they could do it.


 

We talk a lot about passenger comfort on this blog, but we haven't yet looked at what the poor sods up front are dealing with. And when I say up front, I don't mean the privileged folks in premium class. I'm talking about the pilots.

Graduate student Nicoline van der Vaart, in a fascinating report about redesigning the cockpit seat, notes that pilots (in this case, KLM pilots) suffer with a lot of back pain due to uncomfortable seats, and that this leads to a high rate of absenteeism.

What does van der Vaart recommend? Check out her presentation below. Note slide 36 (shown above), where the highly-interactive Nintendo Wii-fit plays a role.

I was doing a bit of research on YouTube when I came across a familiar face. Why it's none other than Flight International editor Murdo Morrison and he's talking about in-flight entertainment and connectivity (IFEC) and aircraft interiors! Specifically, Morrison says he believes it will be a "pivotal year" for the cabin. Oh yeah. I can see that. How about you?

It doesn't take a rocket scientist to know that in-flight entertainment and connectivity (IFEC) and social media go hand-in-hand. And indeed, we're already seeing evidence that major IFEC players Panasonic Avionics and Thales are bringing social media apps to their platforms. Panasonic's SeatTweet app, which I had a chance to try at AIX in Hamburg, is particularly clever. Here's the tweet I sent from a Panasonic IFEC system:



Airlines are wrapping their arms around social media and with good reason - it is now an essential marketing tool. It reaches loads of people (and indeed is becoming part of our daily lives), and, oh yeah, it's FREE (okay, you do need at least one warm body and ideally a social media strategy).

The carriers that understand how to harness the power of in-flight connectivity together with social media  - I'm looking at you Lufthansa and your MySkyStatus  - will be leaders in this industry.

So with all this attention being paid to the benefits of connected IFEC with social media apps, surely the major players in the field - Panasonic, Thales and other IFEC stakeholders - are participating, right? Wrong!

The Thales Group has a Twitter stream, but it pushes out tweets about everything going on within the group (space, defense, everything!) and really only uses the service as another public relations outlet...i.e. There is no back-and-forth conversation.

Sadly, Thales doesn't even own its own Twitter handle. Instead this person does. We call this a social media #Fail on Twitter. The Thales Group does have a FaceBook page, which is a little bit more dynamic but still very general.

Panasonic promises that it will be actively tweeting soon (see below), but again it doesn't appear to have a dedicated Twitter handle for IFEC. Another social media #Fail in my humble opinion. Its FaceBook page is also very general.

Both firms - and frankly all IFEC companies - should also be looking at building an IFEC presence on YouTube. Who better to showcase the latest and greatest IFEC systems coming to market - and the latest and greatest content - than the providers? Then we journos will take that info and push it to our growing networks. Yes, airlines brand your systems, but that doesn't mean you shouldn't be telling the world about what you do (hey, even Boeing is jumping into social media!)

Someone asked me today (on Twitter): "Will social media really help Panasonic or Thales win an RFP contract because they're more social?" Fair question. Here's my answer: "It can't freaking hurt!"

Indeed the World Airline Entertainment Association (WAEA) - which is rebranding as the Airline Passenger Experience Association (APEX) - is even starting to get more social, with the launch of the Passenger Choice Awards (it should be touting these awards on Twitter and FaceBook!)



Meanwhile, I can't wait for the day when I'll be able to tweet: Panasonic and Thales - IFEC social media #Success.

On an aside, I'm curious as to why the IFEC press hasn't jumped into the social media arena either. If you stay out of social media (or merely lurk in the shadows), you'll let others dominate a conversation that you're likely best equipped to lead (The same argument can be made for Thales and Panasonic and other IFEC players.)

Perhaps you think the real thought leaders in our industry aren't using Twitter. I can tell you that they are. Sure, some IFEC executives prefer to stay in the background, but these and others are becoming increasingly vocal.

Collectively, this industry has a tremendous opportunity to use social media to get the word out about how IFEC plays a crucial role in the passenger experience (and I assure that the passenger experience is one of the most popular topics on Twitter).

If nothing else, would you please jump on Twitter and help me dispel the myth that the iPad is going to kill embedded IFEC? My God, that could be a job in and of itself.

So, what do you say? Will you join me?

Here is what people are saying about the in-flight experience now.

B/E Aerospace's integration project with Thales is really quite something. But don't just take my word for it. Here is what B/E Aerospace's Alex Pozzi says about integrating Thales' next gen in-flight entertainment and connectivity (IFEC) system into the firm's Pinnacle economy-class seat. The solution will be offered on Qatar's 787s.

It has been a busy few weeks for this RWG with back-to-back-to-back trips on both sides of the pond. Along the way, I've picked up various bits of IFEC/aircraft interiors news that I'd like to share with you. (This meal is probably best served with German beer, but please no more sausage for the love of God and all that is holy!!)

Let's get this party started...

Lest you think the contrary, Airbus/SITA joint venture OnAir is very open to providing Ku-band satellite-based connectivity to current and new customers should they want it. The company is bringing Inmarsat SwiftBroadband-supported connectivity to Qatar's Boeing 787s, and "if one day Qatar wants Ku, then we'll give them Ku", OnAir chief executive Benoit Debains told me at AIX. "We are totally scalable and adaptable. Today, I believe the airlines will first want to see what they can do with the [SwiftBroadband] antenna. They can always add a second antenna and we can adapt to this link."

So is OnAir open to partnerships with Ku providers, such as Row 44? "Of course," says Benoit, who swung by the Row 44 stand at AIX to discuss a meeting between the two companies (great timing!). Says Benoit: "90% of the technology we bring is independent from the aircraft to ground link. If it's Inmarsat, good. If it's Ku, we can adapt even if we don't manage the satellite link. We could be ATG (air-to-ground), Ka-band, or WXYZ." Oh Benoit, you kidder.

While OnAir's connectivity deal with Qatar - and its as-yet-unannounced deal with Emirates for the A380 - are significant, rival AeroMobile and partner Panasonic Avionics are also working on a number of very big announcements, after confirming the Air New Zealand deal last week. Let's just say they involve Boeing long-range aircraft. Also, Lufthansa is gearing up to shortly launch Panasonic/AeroMobile-provided high-speed Internet and mobile service on overseas flights. 

Speaking of in-flight connectivity, my hometown airline, US Airways, has clarified just how far the Gogo service extends beyond US borders - exactly 100 miles. Here's the message I received in my inbox yesterday.



It's no wonder, then, that Canadian operator WestJet this week said during an earnings conference call it is still in the early stages of studying in-flight connectivity - yes still! - because the infrastructure isn't in place to support Wi-Fi. (How long will Air Canada have to wait for fleet-wide roll-out of Gogo? And what about a satellite-based solution, WestJet?)

Knowing a thing or two about Ku-band satellites is Row 44, which is confident it will secure more business in the United States (outside of its massive Southwest Airlines deal). Row 44 head of business development Frederick St Amour tells RWG: "There are domestic US and non-US carriers that see, and are becoming ever more aware of, the dramatic advantage that increased bandwidth [provides]."

But what about Ka-band-based connectivity, Frederick? Does Row 44 have any interest in that? "Ka-band is interesting at this point, but it is not crucial," he says, noting, however, that Ka may be practical for antenna makers in "three to five years".

One of those antenna makers, EMS Technologies, believes the technical problems surrounding Ka-band connectivity - such as the current geographical limitations and so-called "rain fade" - can be overcome, making passenger communications much more affordable.

EMS Technologies vice-president of strategy and innovation Gary Hebb broke out his crystal ball and gave an excellent presentation on the matter at the recent WAEA (now APEX) single focus workshop on connectivity in Los Angeles. Read his presentation here (it also includes insight on the 60 Ghz unlicensed band for wireless in-flight entertainment).
EMS Aviation -- WAEA SFW on Connectivity -- Networks.ppt
 
Another antenna maker, Aerosat, sees great potential for the Ka market, and reveals it is developing an upgrade for its Ku-band antenna. "I would say that the trend in interest in Ka is up. You'd have to be [living] under a rock to not recognize that," Aerosat vice-president of business development Bill McNary tells me.

One could reasonably argue that antenna makers might like to see serious Ku-band connectivity take-up in the commercial sector before shouting about the benefits of a better Ka-band business model. But it seems that even our L-band friends at Inmarsat may be eyeing up Ka like donuts in a shop window.

Here is a key par from consultant consultant Tim Farrar's recent report on Ka activity:

Inmarsat's future satellite plans
According to recent press reports, Inmarsat is "exploring a range of options for its next-generation global satellite system, including advanced L-band, Ka-band and other frequencies" and sent out a Request For Information to satellite manufacturers in late 2009 to evaluate possible alternatives for a fifth generation Inmarsat system. Though this process could in theory take quite a long time before any satellite order was even placed, it appears Inmarsat is moving forward very quickly to make a decision. We now expect Inmarsat to make an announcement of a multi-satellite contract at the investor day this summer, when it has promised to provide five year revenue growth targets (2011-15) and will presumably have to set expectations for capex over that period as well.

Iridium Communications, meanwhile, has picked Thales Alenia Space to design and build its next-generation constellation of satellites, which will support speeds of up to 1 Mbps to the cabin.

But enough about satellites. Let's talk about interiors, specifically integrated IFEC/seats. During a pre-AIX interview with RWG, Boeing regional director passenger satisfaction and revenue Kent Craver said:

"Based on what we're seeing, there is definitely strong interest from the industry for these more highly integrated product offerings. I've been around the industry for quite some time, and there has always been talk of a greater need for in-flight entertainment and seat suppliers to work closer together. I think you're seeing the industry respond positively. My guess is we're going to see additional integration between suppliers and seat manufacturers."

Attendees at AIX saw examples of the integrated IFEC/seats coming to market, including the B/E Aerospace Pinnacle economy-class seat with Thales IFEC (one word - beautiful), which will be offered on Qatar's 787s. Will the aircraft need to be retrofitted with the solution? Let's hope not. Thales, Boeing and OnAir are all working to try to get this line-fit.

Also at AIX, we saw the Lumexis fiber-optics-based system integrated with Recaro's BL 3510 seat, which will be offered on FlyDubai's 737s; and the Panasonic Integrated Smart Monitor ("Smart") on Weber and Recaro seats, which have already been ordered by a number of undisclosed customers.

You'll recall that Teague - Boeing's not-so-secret design weapon - aided Panasonic and Weber in developing the original, award-winning Smart IFEC/seat, seen here:



Separately, Teague has been working with Boeing from concept through delivery on the 787 cabin "to define and deliver an unprecedented passenger experience". But what are 787 customers requesting in terms of configuration for the twinjet? Here's what Boeing recently told me on camera about that (an all-business 787? nice!):
 

Now imagine what you could do in the cabin of a Blended Wing Body aircraft, if it sees the light of day. That's just what Aerospace International did in its May issue. Key pars from the magazine's 'Space Invaders' feature:



Innovation is not relegated to the long-haul (and futuristic) market, however. During the recent Regional Airline Association (RAA) convention in Milwaukee, Mitsubishi revealed that it is developing a premium-class seat for its MRJ regional jet. Delta Kogyo is already providing the economy-class seat. Japan has not made a commercial aircraft in decades. Consequently, for the MRJ to receive FAA certification, the agency will have to perform a shadow certification to ensure that the Japan civil aviation bureau's processes are on par with FAA standards. (I wonder if the Koito aircraft seat debacle will make the FAA throw a bit of extra oversight into the mix.)

Also at RAA, ATR touted its new Series 600 turboprops' cabin improvements, which enhance the feeling of space and comfort (and can give you a bit of drop-down IFE to boot).



I'm guessing this cabin feels spacious providing the airline customer doesn't pick the 29in pitch layout. Ouch!




Separately, it bears mentioning that China is hosting another WAEA (APEX)-sponsored IFEC event (its third!). Be sure to check it out. Also, voting for the Passenger Choice Awards has started. Which carrier gives you the best passenger experience? Vote here!

(Photo of sausages from L.i.l.l.i.a.n's Flickr photo stream) 

According to digEcor, they do. But digEcor is a portable in-flight entertainment (IFE) provider RWG, you cry.

Fair enough, but the survey is still most certainly worth a read, as it takes a good look at what passengers actually want to watch. Also be sure to read digEcor's take on the survey in its "key findings" piece.

Update:

While Jetstar used to rent digEcor's digEplayer portable IFE units to passengers, it no longer does so. DigEcor says today that it hasn't supplied Jetstar in several years, and that Irish firm Airvod is the current provider. Meanwhile, there is a really interesting back story to the Jetstar/BlueBox deal, and Airfax has the skinny.

Blog:

Qantas unit Jetstar has emerged the trial carrier for BlueBox' iPad for in-flight entertainment (IFE).

The Australian low-fares airline - understood to be a customer of Airvod - in a statement says the trial will begin later this month on selected domestic routes across Australia.

It says the iPads will provide IFE with movies, TV programs, eBooks, music videos, games and CDs. Jetstar passengers can pay $10 to rent the iPad on board.

Specific details about content are not immediately available. However, the trial is being carried out under partnership with Stellar Inflight, which specializes in film and television programming/licensing.

Key quote from Jetstar CEO Bruce Buchanan:

"We are really excited to commence the trial of the iPads, as we're always looking for ways to enhance our customer's Jetstar experience. Given the demand for the iPad so far, I anticipate it will have strong appeal amongst our passengers. In addition to offering low fares, great customer service and more choice, it's important that we can provide the latest in innovative technology to entertain our customers on board.Based on demand for the iPads as part of the trial, we'll be looking to roll out the devices across our entire domestic and international network later in the year."

So Jetstar is mulling rolling out the devices on its entire domestic and international network? Well that's rather huge. Jetstar's fleet consists of Airbus A320s, A321s and A330s. The carrier also holds an order for 15 787s. A bit of in-flight connectivity would go nicely with this deal, eh?