Recently in In-flight Entertainment/Communications Category

Show me the money, says IFE expert

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I recently wrote a Flight feature about how airlines are turning to in-flight entertainment and connectivity to drive fresh ancillary revenue streams. But is there really big cash to be made? One IFE expert with deep knowledge of the industry doesn't think so by any stretch.

eXConnect.jpgHere is a little food for thought for those of you keeping an eye on the industry, or readying to hop a plane to Long Beach for WAEA. Comments, as always, are welcome.

"Over the past few weeks I have read so many different reports about how the market for connectivity is going to worth billions. The reality is somewhat different. With airlines trying to survive the current squeeze and using the opportunity to 'bury any other baggage they have' connectivity particularly is not top of the agenda.

"It is a great achievement for the industry that Aircell, AeroMobile and OnAir are all flying and we finally have a sustainable approach to connectivity. However, the market prospect has been over-hyped. The figures do not add up.

"A handful of airlines will operate various forms of connectivity during 2009. The product will be successful in certain market, but the reality is that financially, it is no big deal. It is like having 2-3 extra items on the duty free trolley. However, as various companies look to get investment, the market is being talked up all the time. By the end of next week in Long Beach it will probably be a case of one wafer mint too much.

"The focus on connectivity is hiding major changes in IFE content and hardware. Content companies are consolidating and realising that there is no room for a 'middle man'. Weight constraints and threat of portables (which was over hyped) has kicked IFE hardware into shape.

"The latest systems are 30-40% lighter and providing 3 times the content of the previous generation. This is before the latest competitors come out of China with ultra-high tech and low cost."

Saints above, it has finally happened! Aircell's in-flight connectivity service Gogo thPrayer 2.JPGis morning went live on American Airlines' Boeing 767-200 fleet. Regular readers of this blog know that I've been praying for this day for a long time. And frankly, right now I'm wishing I had booked on American for my upcoming flight to Los Angeles, where nearby Long Beach is hosting both the WAEA and Interiors events.

With all systems now go, go, go on American, the onus is on Aircell to prove that its long-touted system not only works, but works really well. All eyes are on the carrier - and all ears on Gogo users - as the three- to six-month test of Aircell's system begins.

The stakes are ever so high. The outcome of American's trial will help determine the speed at which in-flight connectivity is adopted in the United States.

If the system proves robust and passenger take-up is fierce, Aircell is in a very sweet place, and could very well capture a sizeable chunk of the US market. An Aircell success could also prompt LiveTV, which holds a narrowband slice of air-to-ground spectrum, to step into broadband via satellite-based means (heck, it's got loads of experience with satellite television). 

If Aircell's system falters or doesn't live up to expectations, it would be a major setback for the Colorado-based company (and its investors alike) as well as other connectivity providers because carriers will grow ever more cautious about adopting new services. 

The Aircell trial will also decide - perhaps once and for all - whether an air-to-ground network can truly support broadband services. The jury is currently out on whether Aircell can offer in the air the type of high-speed functionality that we have all come to know and love on the ground.

Stay tuned...

Israel's Starling Advanced Communication is targeting operators of narrowbody aircraft for its new Ku-band antenna, Mijet-Lite, which will support high-speed connectivity services.

Development has been completed and the system is ready for flight testing. A prototype of Mijet-Lite will be unveiled next month at the World Airline EntertainMijet.jpgment Association (WAEA) conference and exhibition in Long Beach, California, Starling VP marketing and sales Jacob Keret told Flight's premium affiliate ATI.

He says the system is a lighter weight, lower cost version of Starling's standard Mijet antenna but larger than the mini-Mijet for business jets (click on graph for specifications of each).

Mijet-Lite will provide about two thirds of Mijet's performance, while saving about 50% of the weight, he says.

Separately, Starling is working in partnership with EMS Technologies' Georgia-based Defence & Space Systems (D&SS) division to offer a new ultra-fast, ultra-lightweight (45lb/20kg) Ku-band airborne antenna system for the US commercial airline market.

"We are making a lot of progress with EMS on our partnership. [I can] make a good guess that EMS will announce something soon," says Keret.

Panasonic Avionics previously picked Starling as a non-exclusive antenna partner in its satellite-based connectivity system, eXConnect, but requested performance improvements to the firm's fuselage-mounted Mijet antenna as well as from other would-be suppliers. It is not yet clear whether Starling's antenna offerings are still being considered by Panasonic Avionics, which is expected to reveal further details of its solution in the near-term.

The in-flight entertainment (IFE) hardware giant has been working to fill the void left by Connexion by Boeing's December 2006 closure.

"It wasn't wrong what Connexion did. They just had some problems," says

Panasonic Avionics director of strategic product marketing David Bruner, adding that the eXConnect system will be "lighter, better and have less drag".

He adds: "We didn't want to have a system that was limited to basically the geography of the United States. We wanted something that could scale better and this solution at least we believe is the right solution."

Inmarsat has confirmed the successful launch and acquisition of the third Inmarsat-4 satellite.

Inmarsat launch.jpgThe satellite was launched on a Proton Breeze M rocket from the Baikonur Cosmodrome in Kazakhstan on 18 August.

Inmarsat launched the first two I-4 satellites in 2005. With this latest achievement, the satellite network provider's new, higher-bandwidth aeronautical service, SwiftBroadband, will be accessible worldwide - except the extreme polar regions.

"The Inmarsat-4s are the world's most sophisticated commercial network for mobile voice and data services, and the successful launch of the third I-4 allows us to complete the global coverage for our broadband services," says Inmarsat chairman and CEO Andrew Sukawaty.

"Once the third I-4 is operational, Inmarsat will have the only fully-funded next-generation network for mobile satellite services."

The satellite will now undergo a period of deployment and several weeks of comprehensive tests and manoeuvres before being positioned in geostationary orbit at 98ยบ West.

In-flight connectivity provider OnAir is offering a SwiftBroadband-based GSM solution.

On 2 April Air France started the voice element of ongoing trials during commercial flights across Europe on an Airbus A318.

Irish budget carrier Ryanair is readying to begin a trial of the service. Other international carriers have committed to the OnAir solution.

(Photo care of Inmarsat)

We're nearing the end of summer and there has been nary a test of Row 44's satellite-based connectivity system onboard Southwest Airlines' aircraft, as previously expected. What's going on?

Southwest Vegas.jpgSouthwest still expects to trial the system this year onboard four Boeing 737s, but doesn't see it happening until the fourth quarter.

"It's a new process for us so there are approvals that we're going through and the technology is new for Southwest as well," says a Southwest spokeswoman.

Pricing has also not yet been determined but it will be "in line with our low-fare model", she adds.

Southwest isn't working with any other connectivity providers at this point. "We are concentrating on Row 44 and this stage is the proof-of-concept. We're working with them and only them right now."

Probing the interior

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The time has come to use this blog for the noble cause of self promotion. On 9-10 September, I will have the pleasure of moderating some panels at the iinteriors.jpgnaugural Airline Interiors Expo - Americas event, which is making its debut in Long Beach, California.

Co-located with the annual World Airline Entertainment Association (WAEA) conference and exhibition, Interiors' forums will explore how and why airlines should be using the cabin environment to differentiate themselves; what drives a culture of cabin innovation; and how airlines can make new technology pay.

In addition, noted researcher and blogger, Addison Schonland - IAG will deliver the results of a hard-hitting industry and consumer survey about airline comfort. Please feel free to participate in the survey at http://survey.iag-inc.com/interview.cfm?id=105

That all sounds wonderful, you say, but aren't cabin amenities for those of us in steerage being chucked out the window, especially on domestic flights? Aren't we being nickled and dimed for even basic necessities?

Clearly we're going to see more "pay as you go" items. But this is one road warrior who welcomes the chance to browse the Internet, use e-mail or have a quick phone chat in-flight, even if it means paying a fee.

In any case, the future windfall of ancillary revenue from these endeavours could be substantial to airlines. Recent research from MultiMedia Intelligence suggests that the market for in-flight broadband services is poised to grow to $936 million in passenger revenue in 2012, up from initial revenue of $6.6 million this year. Similarly, the market for in-flight live direct broadcast video is projected to grow from $87 million in 2007 to $913 million in 2012.

Predictions that in-flight mobile phone usage would at best prove a nuisance and at worst provoke an onslaught of air rage episodes haven't materialized.

Air France pic.jpgAccording to Airbus/SITA partnership OnAir, there are three main reasons why this is so - the OnAir system currently allows up to six simultaneous calls, which is not a high proportion of passengers in any commercial plane; the average length of calls is no more than two minutes; and an aircraft cabin is a noisy place, so the sound of people talking is drowned by other noises.

OnAir has been trialling its service on Air France and TAP Portugal, and is readying to go live on Ryanair.

"Despite the challenging current and foreseeable economic environment in the air transport industry, more and more airlines are trialling, installing or planning to install in-flight passenger communications services in the near future, to allow passengers to use text messages and email, and to make and receive voice calls," says the company.

"The ancillary revenue and service differentiation potential is evidently winning the board-room over."

OnAir CEO Benoit Debains is convinced that once people get a taste of in-flight mobile phone connectivity, they'll want it and come to expect it. He notes that there are "applications that people haven't started to think about" like the ability to access information about each flight, using cell phones as a tool for rebooking and mobile check-in.

Voice calls during flight are presumed to be "something annoying" but the mobile phone "is much more than voice; it can communicate with messaging, make payments, plenty of things and that's why I think there will be a lot of adoption", says Debains.

Emirates 777.jpgOnAir's rival, Arinc/Telenor joint venture AeroMobile, has also discovered that in-flight voice call chatter is more than tolerable.

An Emirates Boeing 777 equipped with the AeroMobile system flew into London Heathrow on 7 August with passengers able to make and receive calls, as well as exchange text messages.

"All the evidence so far is that concerns about potential impact on fellow passengers are groundless. The service has been used considerately and with the minimum of fuss," says AeroMobile chief executive Bjorn-Taale Sandberg.

"Text messaging is proving particularly popular, especially because it's an effective way to communicate during a long-haul flight when you are crossing different time zones."

Emirates VP for passenger communications Patrick Brannelly adds: "Passengers have reacted matter-of-factly, as if it was the most natural thing in the world.

"We have had no complaints or incidents since the service was introduced in March.  On airliners the cabin noise level is such that you can't hear people making phone calls, and the call quality has been so good there's been no need to shout."

(Photo of Emirates 777 copyright of AirTeamImages)

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