The Business of Passenger Experience
As the new Thales/Spirit Airlines Ka-band inflight wifi connectivity solution inches closer to flight testing it appears necessary to dispel one rumor about timing and opine on a very different one about the antenna technology that will be used on board.
Building on yesterday’s report that JetBlue plans “aggressive” changes to its route network details the changes are now public. One new international destination joins the route map and several routes see increased frequencies. The carrier will also close three stations and shift one to seasonal service. A handful of routes will also be shuttered. This round of changes will begin to show in JetBlue’s schedule effective in January 2019.
Outgoing Spirit Airlines CEO Bob Fornaro is no stranger to the inflight connectivity world, even if his current airline is a late adopter of such services. Fornaro oversaw the fleet-wide deployment of connectivity at AirTran. He saw the value it could deliver and the pains that poor performance and limited availability caused for passengers and the airline. Now he wants to bring a new model to market and lead the connected ULCC revolution, starting with the Thales kit installed on his company's fleet. Will this secret sauce work?
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?
Work on the first Spirit Airlines aircraft to receive its Thales-supplied inflight wifi connectivity hardware is underway. Installation efforts started this week at an MRO with Thales overseeing the work.
“Inflight connectivity doesn’t just create revenue, it could save the airline industry US$15bn a year.”
That’s a bold claim from Inmarsat and the research it commissioned from the London School of Economics (LSE). Much of the savings comes from better weather forecasting and the associated effects: reducing delays and fuel burn. Part of the forecast savings comes from predictive maintenance opportunities, allowing the plane to track its own performance and use on-board connectivity solutions to report back to headquarters when operations are less than nominal. The so-called Internet of Things for Aviation (IoT/A) has long been held up as the financial savior of the connectivity platforms, delivering the necessary financial support to justify installations. What will it take to realize the $3-46bn in annual savings the research revealed? A lot of work, and it is unclear which connectivity vendors are truly committed to that effort.
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.
The launch of inflight wifi connectivity on Spirit Airlines presents many questions about the business model associated with that deal. Earlier this month, on the sidelines of the IATA Annual General Meeting in Sydney, Dominique Giannoni, CEO of Thales InFlyt, spoke about the arrangement and why just focusing on the contract terms doesn't really answer the bigger questions around how the service will operate and prove profitable to both parties.
When senior airline executives are willing to trash their vendors in public that's usually bad news for everyone involved. Welcome to the inflight connectivity world, where airlines are almost as unhappy as the passengers struggling to stay online in the sky. Alas, only part of that frustration is grounded in reality.
Spirit Airlines will add inflight wifi as it seeks to improve the onboard passenger experience. The carrier's full fleet will carry Thales FlytLIVE hardware by the end of Summer 2019.
