Inmarsat plc Investor Day Aviation opportunity€¦ · •Available on the market today...
Transcript of Inmarsat plc Investor Day Aviation opportunity€¦ · •Available on the market today...
Inmarsat plc – Investor Day Aviation opportunity
Miranda Mills
Vice President Aerospace Global Xpress Programme
09 October 2012
Passenger connectivity growth potential
Source: IMS Research
Aug 12
0
5,000
10,000
15,000
20,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Cellular only Wi-fi only Cellular & wi-fi
Total Connected Aircraft* No. of aircraft at 1st January
Emerging opportunity to provide in-flight passenger
connectivity that offers tremendous growth potential
* Commercial passenger aircraft
Airlines embrace in-flight connectivity
Stimulated by passenger behaviour
Facilitated by new technologies
Being embraced by major airlines in near term
When will wi-fi connectivity be available for passengers to use during flights with your airline?
Available 12%
Within 2 years 41%
In 2-5 years 35%
> 5 years 12%
Source: IMS Research Aug 12
Step change in aviation services with GX
GX Aviation is: • Designed for mobility
• Offers unparalleled coverage of airline routes
• High quality service & reliability
• Design fundamentals drive attractive pricing
Proliferation of applications will require more & faster bandwidth
• GX brings flexible, upgradeable bandwidth options for passenger & airline services
• Supports live television and real-time television content
• Customisable content, tailored by airlines to their specific customer base
• Base service provides multicast channels of business, news and sports
Challenges to achieve market opportunity
Consumer driven market
Long-term business acquisition cycle
Stringent regulatory requirements
Relatively small number of players
Market dynamics
Airlines often select connectivity in conjunction with In-Flight Entertainment (IFE) equipment:
2 main players in the market:
• Panasonic Avionics Corporation (PAC)
• Thales
• PAC is the current market leader with around 70% market share
OEMs and most airlines prefer to have competition in the market
Our distribution ecosystem is responsive to
this:
• 2 initial commercial air transport VARs
• Several DPs in business aviation
• Partnering with Thales to support specific campaigns, at airline request
Competitive landscape
PAC is currently offering packaged IFE solutions, including Ku based connectivity services
• Available on the market today
• Protecting IFE market leadership position
• Leasing costly Ku transponder capacity,
• previous approach of Connexion by Boeing
• Proposing future services over the Intelsat EPIC satellites
Intelsat EPIC
• Relatively new to aviation services
• 1 satellite recently ordered
• 2016 forecast market entry
• Long term Ku costing is not clear
• Coverage limited to North Atlantic
Honeywell partnership
Aerospace facts
Revenues of $11.5 billion in 2011
Headquartered in Phoenix, Ariz.
38,000 employees worldwide, based at nearly 100 manufacturing and service sites
Strengths
Market leader in aviation terminals
Partnered with Inmarsat for over 20 years
Key capabilities in system certification
Worldwide sales & services network
Aerospace
Exclusive terminal provider
Honeywell partnership
Fuselage & tail mounted designs for commercial air transport, business aviation & Government markets
ARINC 791 compliant, to support line fit with Airbus and Boeing
On schedule for Q1 2015 entry into commercial service
KANDU + KRFU Antenna Positioner / Control + Antenna Amplifier
MODMAN Terminal /Modem
RADOME + FUSELAGE MOUNT ANTENNA – Includes mounting plate / adapter / doubler
Hardware solutions developed in partnership since Jan 2012
Gulfstream
Dassault Falcon Jet
Cessna
Hawker Beechcraft
Embraer
Bombardier
Pilatus
Epic Aircraft
Harbin Aircraft
Viking
Key Customers • Propulsion systems
• APUs and power generation
• Integrated avionics systems
• Advanced safety systems and applications
• Synthetic vision systems
• Flight management systems
• Cabin management systems and services
• Cockpit displays
• Satellite communications systems
• Digital flight guidance systems and controls
• Digital radio systems
• Environmental Control Systems
Key Products
• Digital radio systems
• Environmental Control Systems
• On-Board Inerting Gas
• Generation Systems
• General Aviation panel mount and portable avionics
• Required Navigation
• Performance Special
• Aircraft and Aircrew
• Authorization Required
• (RNP SAAAR) Services
• Flight support services
• Maintenance service plans, avionics warranty plans, and remote diagnostic services
• Global Asset Rental Banks
• Electronic flight bags
Our ideal partner for Business Aviation distribution
Honeywell partnership
Business & General Aviation customers, products & services
Currently providing services to 15,000 BA tails
Key Products
GX distribution strategy
Announced 8 October 2012
Capacity commitment constitutes material new GX presales
Honeywell anticipates additional growth opportunity through the channel
Deal is strategically important to Honeywell Aerospace’s strategy, by:
• Strengthening the current Terminal partnership
• Reinforcing commitment to current products
Business Aviation market is an early-adopter & high user market
Honeywell’s experience managing global channel partner network ensures level playing field for Distribution Partners and high quality services delivery to subscribers
Inmarsat distribution partners are short-listed for GX
Business Aviation Master Distribution Agreement
Our ideal partner for Business Aviation distribution
GX distribution strategy
Collaborative partnerships with the two leading connectivity players:
• Alternate business models ensure GX will be bid for the full range of airline opportunities
• Partners have global reach & regional focus
OnAir Value Added Reseller (VAR) Agreement
• Announced on 17th September 2012
Inmarsat has signed an MOU with Gogo
• Expect to conclude a VAR Agreement
Commercial air transport
GX distribution strategy
Established in 2005 by SITA & Airbus
230 equipped aircraft, 1050 orders in backlog
46% global market share for connectivity
Regulatory approval in 85 countries
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OnAir, a global partner
Partnering with major airlines worldwide
to provide connectivity solutions
GX distribution strategy
1 millionth Gogo customer
1000th Commercial Aircraft system installed
Gogo Launch Airline
Aircell Formed
11/2011
6/2012
1991 – 2007 2008 2011 2012 2009 2010
11/2009
8/2008
12/2008
5/2009
12/2011
5/2010
3/2010
International
> 1,600 GOGO commercial aviation tails installed
> 6,000 GOGO daily flights
> 24.5M GOGO connectivity sessions
> 525M Commercial airline passengers served
GOGO goes global
Providing connectivity and entertainment solutions
direct to passengers, generating ancillary revenues
and branding opportunities for airlines
1991
GX aviation summary
The market is now active & growing
Passenger connectivity represents material incremental opportunity for GX
Some connectivity market estimates exceed $1bn in annual satellite airtime during I-5 lifetime
GX ideally suited to aviation connectivity
We have the a strong team of partners
Together we aim to set GX as the reference in the market