Seeing Stars: EMS and Starling Join Forces to Capture Ku band Connectivity Business in the USA (What About Mijet?)

A few weeks ago Panasonic Avionics revealed it is still shopping around for an antenna for its in-flight connectivity solution, after deciding that Starling’s Mijet antenna was not yet up to its specs. Today, Starling announced a memorandum of agreement with EMS Technologies to offer a new Ku band antenna for the US market. Coincidence? I’ll leave that for you to decide.

But the timing, to say the least, is very interesting indeed. “We want a better overall performance that will meet our requirements not today but meet our requirements down the road,” Panasonic director of strategic product marketing David Bruner told me in January.

Perhaps Panasonic will get its wish. Under the agreement disclosed today, Israel's Starling and Georgia-headquartered EMS’s Defense & Space Systems (D&SS) division will offer an ultra-lightweight (45lb), low-profile antenna that will enable “full-featured broadband in-flight applications, such as the Internet, VPN [virtual private network], PDA, VoIP [voice over IP], e-mail, mobile phones, video conferencing, instant messaging and various entertainment applications, including video-on-demand, live TV, online gaming and multimedia applications”.

But here’s a yummy piece of info for ya. The joint product with EMS is a mature product and will be ready within a few months!!! So says Starling VP marketing and sales Jacob Keret, who was kind enough to call me just before he hopped on a flight. Thank You!

Oh yes, and before you write off Mijet, you should know that it has a customer, thank you very much. Certification is underway, and little sister mini-Mijet will be certified in the third quarter. Stay tuned for more info about this – I’ve got to write some follow-up articles for Air Transport Intelligence and Flight first!

But before I dash off, let me leave you with this thought. EMS direct broadcast satellite (DBS) antenna systems are currently sold through JetBlue Airways subsidiary LiveTV. JetBlue general manager of product development Brett Muney said yesterday at an EMS-sponsored event in DC that a broadband offering is among the in-flight connectivity solutions being studied by the airline. Could LiveTV use a new EMS/Starling antenna to offer satellite-based connectivity onboard JetBlue A320s? What about LiveTV's other customers - Frontier and WestJet (and now Continental Airlines)?

Anyone dizzy yet?

(Photo above right of Runway Girl with Panasonic Avionics CEO Paul Margis and WestJet executive Darren Marchinko at a reception last September during WAEA in Toronto)

That's Entertainment: In-flight Connectivity's Top Dogs Don't Mess Around

Put AeroMobile, EMS SATCOM, JetBlue Airways, Inmarsat, OnAir and the World Airline Entertainment Association (WAEA) in one room and what do you get? A helping of in-flight connectivity insight (and a dash of disagreement)! During a National Press Club briefing hosted by ever-more-visible player EMS this morning, some of the top dogs of the industry chatted about everything from satellite launches in Kazakhstan (Inmarsat) and near-term certifications (AeroMobile) to broadband considerations (JetBlue) and US regulatory impediments concerning in-flight cell phone usage.

A key moment came when OnAir CEO Benoit Debains claimed that the Airbus/SITA joint venture is “the only company able to provide Blackberry service onboard aircraft”. Needless to say AeroMobile director, marketing and strategic relations David Coiley had a few thoughts about that.

I’ve love to get into all the juicy details right now, but I’m on deadline with a few stories from the event (and it’s nearing bedtime in the Kirby household, which now includes an over-fed cat and a miniature poodle who has yet to learn not to do her business on my living room floor).

Before I go, however, let me leave you with some advice from EMS SATCOM vice president and general manager Gary Hebb, who was in attendance at today’s conference. In terms of in-flight entertainment and connectivity:

1) Don’t believe any dates – they’re never true.

2) Don’t believe any bandwidth claims. They might be true sometimes but not often enough to make a difference.

3) There are trials and there are “trials”. Some trials are to prove the technology. They might have stuff from Best Buy held together with duct tape. The trials with Air France and Qantas are much more advanced. They're testing passenger reaction and business models.

4) One has to be very smooth to get money out of passengers.

(Photo of Hebb above left)

Trend Watch: Airline Take-up of Live Television/Connectivity Grows

The adoption by US carriers of in-seat live satellite television – together with connectivity services - is growing leaps and bounds.

This trend is “really exciting”, says Panasonic director of strategic product marketing David Bruner. “The US market could end up in the next couple of years with a totally different experience when you get onboard the airplane than what you saw a couple years ago.”

A strategy launched at inception by JetBlue Airways through its LiveTV subsidiary is being copied on a broad scale. Frontier and WestJet are long-time customers of LiveTV’s in-flight television system. Continental Airlines recently announced plans to install LiveTV across a large portion of its Boeing narrowbody fleet.

Delta Air Lines, through its Song experiment, followed JetBlue's lead when it began offering Panasonic Avionics-manufactured in-flight entertainment (IFE) systems – with live television – onboard domestic flights. It later announced it would extend the offering to its entire transcontinental fleet.

Start-up Virgin America, meanwhile, offers television and (video on demand) VOD onboard its Airbus A320s.

Added to this, JetBlue, Frontier and Continental have all gone public with plans to offer connectivity over LiveTV technology, while Virgin America plans to offer AirCell connectivity.

That the combo of live television and connectivity is proving hard for carriers to resist is evident by the number of requests for quotations (RFQs) in the market right now, say Bruner.

Although LiveTV intends to offer live television and light connectivity to airlines, Panasonic is going a different direction. In addition to television and VOD, the company is offering satellite-based “full Internet connectivity and the broadest broadband in the world”.

A customer has not yet been announced but Panasonic is confident installations will begin on a US airline by year-end. “The airlines are now very focused on not what is the cost of the system, but what is the net cost of the system if it generates revenue. It may pay for itself and make its customers happy and bring you more customers. That's a positive thing,” says Bruner.

So are the Canadians next to introduce connectivity? As mentioned earlier, WestJet's aircraft are equipped with LiveTV. Air Canada, on the other hand, offers Thales IFE.

(Photo above right of JetBlue's LiveTV system)

Red or Blue…What’s a Girl To Do?

If you’re looking to fly between New York JFK and San Francisco, you’ve got a bevy of airlines to choose from. In terms of in-flight services, however, there are two standouts in the crowd – US low-cost operators JetBlue Airways and Virgin America.

Though located on opposite sides of the USA (JetBlue at JFK and Virgin at San Francisco), the similarities between these two Airbus A320 operators are obvious (and well-reported). But competition is going to get even more fierce in the coming months. Here’s why.

JetBlue CEO Dave Barger today revealed the all-economy carrier is looking at allowing customers to pay more for greater seat pitch in the cabin. Translation - JetBlue wants to provide a business-class seating product (it’s just not clear yet if that is what the airline will call it). The plan will be unveiled by the start of the second quarter.

This development is not entirely a surprise. JetBlue last year reduced capacity on its A320s to accommodate additional legroom in the front of the cabin. But, from an in-flight perspective, it brings the eight-year-old airline into closer competitive range to start-up - and two-class operator Virgin.

Added to that, both carriers are very serious about driving ancillary revenue. Virgin will shortly permit passengers to order a variety of upscale items via its “Red” seat-back in-flight entertainment (IFE) system, which uses Panasonic hardware and has about as many bells and whistles as a domestic traveller could ask for.

JetBlue, on the other hand, recently launched a “cashless cabin” whereby it accepts major credit or debit cards for in-flight purchases using handheld devices. Passengers can currently purchase alcoholic beverages this way, but in-flight offerings will be made available in the future.

There is at least one major area where JetBlue and Virgin will try to differentiate themselves. The former plans to offer a limited in-flight connectivity service for free to the entire cabin via technology from subsidiary LiveTV. The latter intends to charge for broader AirCell connectivity in its main cabin. Time will tell which will be the better path to travel.

Nonetheless, both carriers deserve to be commended for figuring out what US passengers want – live television, connectivity and a credit-card swipe.

As Dave Barger said today at the Raymond James conference in New York: IFE is now “the cost of entry” for airlines. “Eight year old kids are making purchasing decisions” in the cabin!

(Photo above left of Virgin America's IFE system; below right of LiveTV promo shot from Livetvifs.com)

JetBlue to Defer Delivery of 16 A320s; Sell-off Six Aircraft This Year

A plan has been revealed by JetBlue Airways to defer delivery on 16 Airbus A320s and sell at least six of the type this year.

JetBlue has been mulling options for its fleet since deciding to slow capacity growth for the year. During an earnings conference call this morning, JetBlue executives revealed that 16 A320s - which had been scheduled for delivery in the 2010 to 2011 timeframe - are being deferred until the period of 2012-2013.

The carrier has also brokered commitments to sell six A320s for 2008, including two sales announced during the previous earnings call.

Additionally, JetBlue exercised three E-190 options in the fourth quarter 0f 2007. These are due for delivery next year.

By year-end, JetBlue's fleet will comprise 110 A320s and 36 E-190s. "This may change if additional sales opportunities are realized," says JetBlue.

(JetBlue logo from www.JetBlue.com)

It's Back On...JetBlue and Aer Lingus CEOs Scheduled To Discuss New Partnership

Six weeks after JetBlue was an apparent no-show at an event to discuss its new partnership with Aer Lingus, the low-cost carrier has confirmed it will join the Irish operator in Dublin on Friday to finally chat about the tie-up.

Lest you get the wrong idea, JetBlue says the arrangement will be more like a "marketing alliance" rather than a full-on codeshare.

But at least the two carriers are now on the same page.

The same could not be said over a month ago, when none of JetBlue’s spokespeople seemed to know about a press briefing scheduled for December 14. That briefing was cancelled after Lufthansa’s planned 19% investment in JetBlue was revealed (a deal that was finalized last week). And Barger was later spotted in Frankfurt at a press conference with Lufthansa chief executive Wolfgang Mayrhuber.

JetBlue confirmed today that Barger will in fact make it to Dublin for the Friday event. I'm sure the Aer Lingus PR staff are grateful that they don't have to print up any more invites, the latest edition of which can be found below.

MEDIA INVITATION
jetBlue CEO to visit Dublin for launch of Aer Lingus alliance

Aer Lingus is delighted to invite you to a media event to confirm details of its industry alliance with jetBlue.

Aer Lingus CEO Dermot Mannion and jetBlue CEO Dave Barger will host a media event at Dublin Airport on the morning of Friday, February 1st as follows:

Part A – tour of a jetBlue A320 aircraft, photos with crew and senior management

Part B – media conference

Media wishing to attend either element of the event should note the following:

Part A - The jetBlue experience Arrival Time: 9.00am

Media will be invited onboard a jetBlue A320 aircraft to enjoy the jetBlue experience first hand. Crew and senior management from both airlines will be available for photos.

Body Count: JetBlue and Southwest Eye Aircraft Offload (Plus Titbits on that AWAS A320 Deal)

It’s lucky for JetBlue Airways and Southwest Airlines that the market for Airbus and Boeing narrowbodies remains strong (at least for now). Both US low-cost carriers are readying to offload excess assets to keep capacity growth in check.

JetBlue has confirmed it will only increase capacity this year by between 6% and 9% compared to the 11% to 13% range advised for 2007. To accomplish this, the carrier is considering selling more aircraft (in addition to the two A320s it will sell in the second quarter), returning leased aircraft and postponing deliveries (pretty much what it did last year). Having this sort of flexibility, says JetBlue, is an asset. (Photo from www.jetblue.com/about/whyyoulllike/about_whyairbus.html)

It’s an all too familiar story. Among a bevy of US carriers cutting capacity in the face of rising fuel costs and a potential slowdown in demand, Southwest in December said it will slash as many as 10 737s from its already-amended growth plan (which includes the disposal of some owned 737-700s). The carrier’s new plan calls for a net addition of no more than 10 737s this year.

On a separate note, Irish lessor AWAS - which today placed a firm order for 75 Airbus A320 family aircraft - has confirmed the following:

1) The company can pick and choose the mix (A318s/A319s/A320s/A321s).

2) Deliveries of new Airbus narrowbodies to AWAS will begin in 2010; an end date has not been disclosed.

3) An engine selection for the 75-strong order has not yet been made. AWAS is currently in talks with manufacturers.

So is there room for AWAS to swap out later deliveries should a Airbus narrowbody successor come on board? What do you want - all the answers?

Overstepping to Germany: JetBlue CEO No-Show at Aer Lingus Event

Don’t get me wrong. I like the public relations staff at JetBlue. They usually respond fairly quickly to press requests and are all generally very pleasant. Those niceties out of the way, I have to report that confusion reigned at the carrier this morning.

None of JetBlue’s spokespeople, it seems, knew anything about a planned press briefing this morning in Dublin, where CEO Dave Barger had been scheduled to join Aer Lingus chief executive Dermot Mannion to discuss details of the two carriers’ tie-up, according to the Irish operator. (Check out the press invite below).

The briefing was cancelled after Lufthansa’s planned 19% investment was revealed. Barger was later spotted in Frankfurt at a press conference with Lufthansa chief executive Wolfgang Mayrhuber.

JetBlue says the media event with Aer Lingus was never set in stone. The invite “should never have gone out to the media”, says JetBlue. “They [Aer Lingus] overstepped their bounds.”

“We still fully intend to go forward with our codeshare partnership with Aer Lingus. The event will be scheduled when we can confirm our executive's presence”

Needless to say, JetBlue's statement left more questions than answers. Will the partnership really take the form of a codeshare? And why does JetBlue's PR staff not know the location of key executives?

JetBlue later corrected its comment about the codeshare. In an emailed message, JetBlue says: “When we spoke earlier about the Aer Lingus event/no-event, I used the word 'codeshare' to describe our partnership. That’s incorrect. We will not be doing a traditional codeshare – EI will sell B6 flights on their website, and our flights will remain branded B6 only.”

Aer Lingus today seemed less certain of the partnership’s status. “Following the announcement by JetBlue that Lufthansa is to make a minority equity investment in JetBlue, we continue to monitor the situation and await further developments and clarification,” says Aer Lingus. “We remain optimistic that the partnership remains on track, and that we will be able to update you on progress soon.”

I can understand why the Irish operator might be a little befuddled. Join the club.


MEDIA INVITATION (PR numbers removed to protect the, um, innocent)

jetBlue CEO to visit Dublin for launch of Aer Lingus partnership

Aer Lingus is delighted to invite you to a media event to confirm details of its industryfirst
partnership with jetBlue, the leading US low fares, high frills airline.

Aer Lingus CEO Dermot Mannion and jetBlue CEO Dave Barger will host a media
event at Dublin Airport on the morning of Friday, December 14th as follows:


Part A tour of a jetBlue A320 aircraft, photos with crew and senior management

Part B media conference

Media wishing to attend either element of the event should note the following:

Part A - The jetBlue experience Arrival Time: 9.00am

Media will be invited onboard a jetBlue A320 aircraft to enjoy the jetBlue experience
first hand. Crew and senior management from both airlines will be available for photos.

Those wishing to participate in the onboard element of the day must:
- For security reasons confirm their attendance no later than 24 hours before the event

- Arrive at the DAA Customer Service Desk on the Arrivals Level with photo id (either driving licence or passport) at 9am on the day to be issued with an airside pass at the Airport Security Office and travel by bus to the aircraft on the tarmac

Part B - Media Conference Arrival Time: 10.30am

The media conference will take place at 11.30am in the Aer Lingus Gold Circle Lounge in Pier B. Media wishing to attend the media conference only must:

- For security reasons confirm their attendance no later than 24 hours before the event

- Arrive at the DAA Customer Service Desk on the Arrivals Level with photo id (either driving licence or passport) at 10.30am on the day to be issued with an airside pass at the Airport Security Office and escorted airside to the Aer Lingus Gold Circle Lounge.

JetBlue and Lufthansa - Nice to See Ya Together

Star member Lufthansa is taking a 19% stake in JetBlue. Initial blast here...conference call later.

JetBlue Airways and LiveTV Agree to Talk Connectivity

JetBlue and subsidiary LiveTV have agreed to talk about the carrier's WiFi connectivity services (dubbed BetaBlue) in advance of a December 11 statement. Thanks guys. Here are notes from my conversations this morning.

LiveTV vice-president of sales and marketing Mike Moeller says:
1) "When we stated this process, we sat back and ... David Neeleman, our chairman, held up his Blackberry and said 'if you make that work on the aircraft, you have solved the problem'."

2) "This is the start. That’s why we call it beta. We want to make it better. We will continue to make software upgrades. [We'll] see what passengers like and dislike, find the kinks in the system and continue to make it better."

3) "When you advertise broadband, people want to use YouTube, streaming video. Even if someone had all 4MHz (of ATG spectrum) it’s difficult to solve that." [LiveTV has 1MHz, AirCell 3MHz]

4) "We started discussion with them [RIM] earlier this year. This has all been kept very, very secret."

5) "The ultimate experience[for passengers is to have] a TV in front of them with 36 channels, watching the game, Blackberry is working, and look at flight attendant and have your beverage. We think that is the ultimate 'died and gone to airplane heavy'."


A JetBlue spokeswoman says:
1) JetBlue feels it has the capacity available to support the service because “at any given one time, there is going to be customers who are watching their television or listening to their radio …how many would press send at the same time versus composing or reading an e-mail?”

2) “We will continue to listen to what our customers want as we test current offerings available on BetaBlue and … based on that will develop a plan and time frame to roll out fleet wide.”

3) We’ve optimized the network for e-mail without attachments and for instant messaging [as well as] instant text messaging through Yahoo Messenger”.

4) “We’re looking at the next logical step in the evolution of our products, what connectivity we can offer. Shopping would be one of the next services we could provide. But right now we’re focused on perfecting what we’re offering – allowing customers to keep in touch with folks on the ground when in flight.”

5) "Yahoo as well as RIM have been a huge part of the development process with us. Yahoo is the number one e-mail provider in the US with 262 million e-mail accounts and they are a popular service. Blackberry is also an extremely popular service. We thought it was important to focus on brands that customers know and love on the ground and bring it to them in the air as well. "

6) Forging partnerships with the likes of MSN and Google to offer passengers access to other free e-mail accounts “is something we’re going to pursue in the future”.

7) With respect to satellite-based broadband service: “We could do it potentially, and we could do it with LiveTV but the business model for that is cost prohibitive. If you look at Connexion by Boeing, they had to charge customers $20 to $30 dollars and [customers] weren’t willing to pay $20 or $30 for that service. We think that is a business model that would be cost prohibitive to provide it for free to all customers and that is something we want to focus on to be able to offer it free for everyone.”

8) JetBlue does not have a time frame for the length of the trial. It will last “several months at least”.

9) Devices used by JetBlue passengers will need to “have an independent on and off switch for WiFi and cellular” as in-flight cellular services remain banned by the FCC and FAA.

10) JetBlue is not interested in eventually allowing passengers to use their mobile phones for voice calls during flight, even if regulations are relaxed. “We believe that our customers really would value a silent connectivity experience ... We would support silent options like text messaging, but we’ve heard loud and clear from our passengers, and we will not be pursuing any cell phone usage calls.”

Sifting Through the Hype: Just What Can JetBlue's Connectivity Solution Offer?

JetBlue Airways today confirmed it will start testing wireless connectivity services onboard an Airbus A320 beginning Dec 11.

Kudos to JetBlue for this well-timed marketing move – the carrier will technically be the first in the US to offer connectivity over WiFi-enabled devices. But let’s put their announcement in perspective, shall we?

First of all, JetBlue’s offering will be limited at best. The carrier says passengers who have WiFi-enabled laptops – AND Yahoo Mail or Messenger accounts – will be able to send and receive messages during flight. Passengers who have RIM’s new WiFi-enabled Blackberries – the 8320 and 8820 models – will have access to emails and messaging.

JetBlue’s LiveTV subsidiary last year won a 1MHz narrowband license during the FCC’s auction of 4MHz of spectrum in the 800MHz band allocated to air-to-ground services.

AirCell, you’ll recall, won the exclusive 3MHz broadband license at the FCC auction, and is preparing to offer service onboard American Airlines' transcontinental Boeing 767s (the test begins as early as March). Passengers will have access to e-mail, Internet and VPN accounts via virtually all WiFi-enabled devices.

I’d love to know more details about JetBlue’s offering (just how many passengers will be able to send/receive Yahoo email at one time, at what speed, etc, etc), but JetBlue has told me they don’t intend to discuss the issue until next week. Spoil Sports.

Out of the Tub…JetBlue Overflies Hub

Just as my mother used to push the boundaries of our tub’s capacity by squeezing at least three of her five children in a bath at one time, so too have airlines stretched New York JFK to its scheduling limits. To unmuddy the waters, the US government has vowed to intervene at JFK and is expected to release details of a scheme after meeting with airlines today and tomorrow in Washington DC. Inhabitants at JFK already know what to expect; the FAA last week released a set of proposed schedule reduction targets for peak hours at the facility.

US major airlines, represented by lobbying group the Air Transport Association, hit back today, saying it’s clear the government intends to cut or cap flights rather than to allow the carriers to agree on schedule changes. A calm voice amidst the clatter, however, was a somewhat unlikely subject. JetBlue, which alongside Delta is largely responsible for JFK’s evolution from a international gateway to a domestic hub, said it welcomes the government’s assistance. And one more thing, it’s going to focus on over-flying JFK – meaning, the carrier is going to increasingly avoid it’s own hub by adding point-to-point service down the East Coast such as between Syracuse, New York and Orlando, Florida.

JetBlue CEO Dave Barger says that of the 12 new routes being introduced between November and January, only two – to Puerto Plata, Dominican Republic and St Maarten – will “touch JFK”. Plans are in place to terminate service at Columbus, Ohio (home of no-frills start-up Skybus Airlines) and Nashville, Tennessee, two markets “tied to” JFK. Tied to? Barger's verbiage begs the question: With all the problems at JFK, is JetBlue rethinking its choice of tub? Check out my article at http://www.flightglobal.com/articles/2007/10/23/218864/jetblue-to-axe-columbus-and-nashville-focus-on-jfk-over-flights.html

Steeling Pittsburgh

For a city that has for years laid out the red carpet to US Airways, Pittsburgh got a punch in the face two weeks ago. The blow didn't come from US Airways' continued retreat from the western Pennsylvania airport - that's been predicted for some time. It came when US Airways began shouting to everyone who would listen that Pittsburgh isn't a viable hub - for any airline!

After announcing plans to slash 40 more daily flights from the airport, close a crew base, and eliminate hundreds of jobs, the carrier went on record to say that the market simply can't support an operation that's much larger than what its own schedule will look like early next year. Accurate or no, the move was akin to rubbing salt into a very sore wound, and could make it even more difficult for Pittsburgh to convince other major airlines to grow operations there.

Sure, low-cost carriers AirTran, JetBlue and Southwest have been gradually ramping up service at Pittsburgh. Southwest CEO Gary Kelly said today the carrier will probably add a couple of flights from Pittsburgh next year. But such gains, at most, are slight.

The fact is that the home of the Pittsburgh Steelers - and lets not forget Iron City beer - has been without any direct transatlantic service since US Airways eliminated flights to London Gatwick and Frankfurt in November 2004. In light of US Airways' continued draw down of domestic service, and its latest remarks about the airport's future potential, it doesn't seem likely that Pittsburgh will regain hub status anytime soon.

That's not to say that Pittsburgh won't make a valiant effort. The city that loves Black and Gold doesn't like to see red.