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An uncensored goodbye...

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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.

Flag.JPGI 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.
If you want to revamp your image, you must consider the passenger experience. Garuda Indonesia, which began a fleet revitalization programme in 2009, shows us how it is embracing customer 'centricity'. A new Super First Class will be introduced to the carrier's new three-class Boeing 777-300ERs. Deliveries begin in 2013.

Panasonic Avionics shows off its new in-flight television service and reveals details about how it is building a critical mass of airline customers.
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.

The Etihad Airways IFE deal is MRO-tastic

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"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.

GO HERE: https://plus.google.com/u/0/110897184785831382163/posts/5qsNxFEaiML, which will lead you to the full report here: https://www.infosecisland.com/blogview/16696-FACT-CHECK-SCADA-Systems-Are-Online-Now.html

I don't have any further details at this time. I will try to firm up this story as soon as possible.

Many thanks to @stefanpaetow for the heads up about this post!