Kate Sarsfield/LONDON
As the global economies stimulate increased demand for air transportation, the business aviation industry is becoming hot property and the knock-on effect is being felt by all.
Riding on this wave of prosperity is the in-flight cabin systems market in which original equipment manufacturers (OEMs), completions centres and hardware providers are carving a slice of this lucrative niche. "The value of aircraft as business tools keeps growing, and new higher value models, with more cabin space and increased range and comfort, will continue to stimulate customer demand," says Joseph Leonard, president of AlliedSignal's sales and marketing division.
This prediction is welcomed by the completions centres and cabin systems providers, which are witnessing one of the strongest periods of growth in a relatively short history, stimulated by unprecedented demand for the latest merchandise. "This industry is huge. As more and more people get into business aircraft, they are demanding up to date and top of the range products to make their journey more productive," says Airshow marketing services manager Marty Hamilton. While the Tustin, California-based company continues to sell its information systems to the airline and business aircraft industries, many providers are switching their focus towards the corporate aviation market. "The growth is far more rapid," says The Network Connection (TNCi) chairman, Wil Riner. To date, Alpharetta, Georgia-based TNCi has secured only a single airline customer, Fairlines of France (which has ceased operations while its financial problems are addressed), for its Airview entertainment and information system, but is attracting interest from business aircraft manufacturers. "Business jet customers are receptive to new technology - this market is very profitable," he adds.
Cabin systems can add millions of dollars to the price of an already costly interior, although both the sumptuous and the hi-tech work-oriented cabins are often the trend on widebodied and long range aircraft, where customers routinely spend up to 14h in flight. "Customers which bring their aircraft to our completion centre can spend anything from $8 million on a BBJ [Boeing Business Jet] or Gulfstream V interior to around $40 million on a Boeing 747 interior - the sky is the limit," says Raytheon's Waco, Texas-based completion centre.
ENTERTAINMEMT SYSTEMS
The market can be divided into three key areas: entertainment, communications and information systems. Cabin entertainment is not a new phenomenon, according to Raytheon Aircraft avionics specialist Mark Calhoun. "Twenty years ago we would install a run-of-the-mill hi-fi, bought from a local store. Nowadays, these systems are tailor-made for business aircraft and are far superior," he says. The Little Rock, Arkansas-based completion centre outfits up to 30 Hawker 800XPs annually. "In the majority of mid-sized aircraft, entertainment systems are becoming standard equipment," adds Calhoun.
Cessna, which claims to have completed around 200 Citations from its Wichita base, believes that new technology is driven by changes in tastes and perceptions, which are now focused on small, lightweight and functional systems. "Customers are keen to stay on top of the latest developments and we have to be ahead of the game. If the customer orders a piece of equipment which will not be delivered for another six months, you can bet that the manufacturer will have upgraded the model by then," says Cessna technical support manager Alan Bergfeld.
The most popular pieces of equipment include flat panel screens, digital video disc players, which are replacing standard video recorders, compact disc players, surround sound and amplifiers. The systems are normally controlled by an integrated cabin management system, which enables the user to "take charge" of the cabin environment via a control panel on the seat arm. On a small aircraft, the systems start at around $50,000, rising to around $100,000 for a more sophisticated mid-sized aircraft fit. On large long-range aircraft, 533mm (21in) plasma television screens are becoming popular. Executive Jet is now installing the screens as standard on its fractional ownership BBJs.
Such is the demand for in-flight entertainment that manufacturers are devising ways of replicating the customers' home environment. Among technological advances to reach the business aircraft entertainment industry is the introduction of airborne satellite television. Hughes Avicom has led the way with the introduction of its DirectTV satellite, which is in service with international airlines. Airshow linked with television satellite TV operator Direct TV in 1997 and certificated the first business aircraft system on a Gulfstream III this year.
Racal Avionics and Datron Systems have produced the radomes and 290mm-diameter direct-broadcast satellite antenna (DBS-2100), respectively, which enable transmission of live TV. AirShow TV is offered with two or four receivers, which provide access to up to 88 television channels, "unlimited" access to pay-per-view films and boundless sports coverage. Rockwell Collins, which was the first company to offer a live TV product to airlines, plans to certificate its first business aircraft system by year end. Most recently, the avionics manufacturer clinched a deal with Gulfstream to provide satellite television on all new GIVSPs and GVs. Honeywell's entry into the market is a matter of time, and Boeing is understood to be developing an airborne "satellite TV" variant , although it declines to reveal any details to date. "We blazed the trail [in the corporate market] and now everyone is following our lead," says Airshow president Dennis Ferguson.
The airborne TV market has been slow to take off, not least because of the high costs involved in buying and installing systems. For example, AirShow TV is priced at $200,000, plus an annual subscription of $6,500. Rockwell Collins' offering is believed to cost more than $270,000, added to an annual subscription of more than $8,000. "Prices will not fall dramatically because manufacturers have spent vast sums of money designing and developing the systems," says Airshow's Ferguson.
Although airborne TV has attracted only small numbers of customers, AirShow TV, for example, is now installed on six aircraft (two Citation X, two Falcon 900s, one Challenger 604 and one GIII). Manufacturers and OEMs are predicting sales of around 100 TV-equipped aircraft a year over the next 10 years. The manufacturers and systems providers are concentrating their efforts on expanding their global coverage to include services in Europe and the Middle East, feeding off the DirectTV satellite.
"We want to offer the customer a truly international service, which we plan to have running by the end of next year," adds Ferguson. Airshow claims that inflight systems providers are "-only a few steps behind what's happening in the home and the office", and believes teleconferencing will become the next requirement.
COMMUNICATION LINKS
As corporate aircraft increasingly find acceptance as business tools, so customers are seeking the technology that will mirror their office environment. Satellite communications (satcoms), which encompass an antenna and avionics, provide on-board communication via telephones, faxes and computers, which are now considered a vital ingredient for business travel. A digital telephone is routinely installed, as are integrated fax and computer ports.
The company's integrated business and entertainment system, called AirView, is claimed to be the first "all digital" system which provides fully integrated functions including telephones, personal computers, printers, faxes scanners and shredders and in-flight entertainment systems over a shared Ethernet Network. TNCi recently signed a contract with Raytheon's completions centre in Waco, Texas, to equip the BBJ demonstrator with the AirView system, which is expected to cost between $500,000 and $2 million, depending on seating and storage configurations. TNCi is also planning to install the system on the remaining 11 BBJ interiors, under contract with Raytheon, and is negotiating with Dassault and Bombardier with a view to installing AirView on the Falcon 2000 and Global Express long-range business jets, respectively.
Information systems have also become a key part of travel, as customers demand to be updated on latest events. Airshow has become one of the largest providers of cabin information systems for business aircraft, along with Universal Avionics. Airshow's systems, priced from about $15,000, include flat screen moving maps and Network, a round the clock financial and sports news service.
The upgraded Executive Office feature provides customised information, generated by the passenger, to be modemed to the Airshow communication centre and uplinked to the aircraft, including e-mail, newsletters, corporate reports and spreadsheets.
What used to be the domain of large/long range aircraft is now filtering down into the small to mid-sized aircraft market, with many companies installing fully integrated cabin business and entertainment systems.
The chink in the provider's armour is the inability to transmit data and voice messages quickly and efficiently via the Internet. Although it is only a matter of time before telecommunications companies devise a way to introduce increased transmission speed, the race is on for systems providers to reach the marketplace first with their unique product.
Source: Flight International
