Airlines Could Save US$15 Billion Per Year by Offering Better Wi-Fi
Jun. 20, 2018
Airline connectivity suppliers released new studies this week which highlight opportunities for airlines to profit from offering passengers better Wi-Fi.
Honeywell and Inmarsat each released reports on how an Internet-of-Planes, with Connected Aircraft applications, could save airlines billions each year. Honeywell predicts that airlines are "on the cusp" of major investments in aircraft connectivity, with benefits beyond offering passengers access to the internet. Inmarsat published a study conducted on its behalf by the London School of Economics (LSE) which looks into the cost savings of a connected fleet improving flight management, operations, and aircraft maintenance.
"The airline industry is beginning to seriously invest in Connected Aircraft technology to proactively improve daily operations. The result is airline employees performing their daily roles more effectively, while also delivering the kind of service that passengers expect, including increased safety and on-time arrivals," said Kristin Slyker, vice president, Connected Aircraft, Honeywell Aerospace . "With the massive potential for cost savings and improved operations, predictive maintenance is the number one area in which airlines are looking to invest. Our research revealed nearly 60 percent of airlines are looking to purchase predictive maintenance technologies over the next year, and even more are expected to invest down the road."
The LSE Sky High Economics study projects that connected aircraft could save airlines US$15 billion per year in operating costs.
One significant area for cost-savings is aircraft self-reporting applications which would support predictive maintenance and reduce the likelihood of "aircraft on ground" (AOG) situations. These maintenance events keep planes stranded on the tarmac waiting for replacement parts that can only be ordered once maintenance operations become aware of the fault. By some estimates, each AOG instance can cost an airline up to US$150,000 per hour. A connected aircraft could communicate parts diagnostics in-flight alerting fleet managers and maintenance crews of necessary repair parts and maintenance resources while the plane is still in the air.
Other benefits would include real-time weather tracking which could help pilots adjust flight paths to avoid turbulence, as well as flight path optimization with more accurate aircraft tracking making airspace management more efficient. These connected aircraft applications will also be critical to aviation over the coming decades as global fleet size grows to accommodate growing passenger demand.
Dr Alexander Grous (B. Ec, MBA, [M.Com], MA, PhD.), Department of Media and Communications, LSE and author of Sky High Economics said: "The forecast doubling of aircraft in the skies by 2035 will create both challenges and opportunities for the global aviation industry. IP-enabled aircraft are an essential step in facilitating growing demand for air travel while meeting vital safety requirements. The study's findings highlight not only the powerful commercial efficiencies for airline operations but crucially, the resulting advantages for safety and environmental impact."
More efficient flight paths will also help airlines cut CO2 emissions, benefiting the environment. LSE predicts that connected aircraft could reduce airline CO2 emissions by 21.3 million tons by 2035.