The Business of Passenger Experience
Competition is generally good news for customers and bad news for the company that dominates a market. The recent strategic partnership announcement by Inmarsat and Panasonic Avionics will bring competition to the on-board terminal hardware for the Global Xpress (GX) inflight connectivity solution. Today's exclusive provider Honeywell appears unfazed – and even optimistic – at the developments.
After ten months of negotiations Inmarsat and Panasonic Avionics unveiled a strategic partnership late last month. The news hit just prior to APEX EXPO, a major trade show where executives from both companies fielded questions. Answers were provided but uncertainty remains about exactly what the new partnership will deliver on some fronts.
It was called "Kiteline" and it was going to revolutionize the inflight passenger experience. A light weight connectivity solution with visions of delivering core functionality, the Kiteline concept is now being emulated by Lufthansa Systems, Iridium, AirFi, fflya and more. And, unlike Kiteline's failure nearly a decade ago, these solutions are now (finally) taking flight.
Panasonic snagged a pair of IFE/C deals this week, adding 20 aircraft to the backlog. These are still Ku connectivity contracts, not yet taking advantage of the new InmarPAC partnership announced last week.
The annual APEX EXPO is less than 24 hours away and anticipation for this year’s event is high. Many suppliers are promising big new throughout the week. In the inflight connectivity world it remains to be seen if anything will top the Panasonic Avionics/Inmarsat announcement from last week. Of course new order announcements are anticipated and will likely be big news. But what additional news will develop during the week?
Panasonic Avionics Corporation (PAC) and Inmarsat are poised to reshape the inflight connectivity world with a landmark deal. The ten year strategic collaboration project will see PAC sell Inmarsat's Ka-band GX connectivity solution while Inmarsat bundles some of PAC's data analytics and services offerings into its sales efforts. Is this the consolidation the market so desperately craves?
Hong Kong Airlines celebrated the delivery of a new tranche of A350s this week, bringing new inflight products to the carrier. The airline’s early A350 deliveries were originally built for Azul; the current set were meant for HK Airlines all along. That means different seats, entertainment systems and inflight connectivity kit on board.
Connectivity installations slow slightly over the summer, allowing an opportunity to take a big picture look at the industry and where the various players sit in terms of connected aircraft and future commitments. Compared to a year ago some players have shifted positions, even as the total committed count increases. The latter is definitely good news for all involved while the former is better for some than others.
Panasonic Avionics has a new marketing boss with a strong background in cloud services and AI systems. It will be interesting to follow the company’s shift in focus as the leadership team continues its rebuild after the bribery scandal, especially as IFE/C or airline-related experience appears an optional qualification.
Just how many aircraft carry inflight connectivity hardware? And which kit?? A pair of announcements this week gives greater insight into which kit is where and how the market is shifting, rapidly in some cases. Not that installation number 1000 matters more than number 999, of course. Yet somehow it does. Just a little.
