12-Oct-2022 4:10 PM

Aircraft Interiors – industry development summary: Sep-2022

Analysis

This regular CAPA report provides a summary of the major developments in the aircraft interiors sector for each region, supported by data from the CAPA Aircraft Interiors Database.

This report will form the latest of a multi-part series focusing on the global inflight connectivity (IFC) market.

Last month we looked at the Asia Pacific and Middle East regions. In this report we focus on the Americas region.

This latest issue features:

IFC market expected to double within 10 years
Viasat dominates in North America
Latin America an underserved market
+regional news updates from Asia Pacific, EMEA and the Americas

Summary

The global inflight connectivity (IFC) market is expected to double within 10 years, reaching over 21,000 aircraft by 2031.
Viasat has experienced significant growth in the North American IFC market, with its Ka-band solution being preferred by major airlines like Delta Air Lines.
Latin America is an underserved market for IFC, with approximately three-quarters of commercial aircraft lacking connectivity services.
Intelsat holds a commanding market share in Latin America, with its IFC solutions installed on over 200 aircraft.
Viasat continues to expand in the North American market, securing significant orders from airlines like Southwest Airlines and Breeze Airways.
Other notable developments include Qantas' plans for its A350 aircraft, Emirates' selection of Thales' IFE system for its A350 fleet, and United Airlines joining T-Mobile's initiative to provide free inflight WiFi to eligible customers.

IFC market expected to double within 10 years: PART TWO

The demand for connectivity has led to an uptick in IFC services within the commercial aviation market, with more than 100 airlines worldwide offering IFC to passengers.

Improvements in bandwidth coverage will lead to further growth in the sector, with the global IFC market expected to increase from approximately 10,500 aircraft to more than 21,000 aircraft by 2031, according to Euroconsult.

North America: 'Viasat secures big wins in the US - soon it will dominate the region'

One of the most interesting developments in the last seven years is the aggressive growth of Viasat in the US commercial aviation market.

US IFC market share: based on widebody and narrowbody passenger aircraft between Sep-2015 and Sep-2022

According to CAPA's Aircraft Interiors Database, the number of commercial aircraft with a Viasat solution increased by more than tenfold - from more than 100 aircraft in Sep-2015 to almost 1,300 aircraft in Sep-2022, representing almost a third of total commercial aircraft in the US aviation market.

One of the key factors in this significant rise is the demand for the supplier's Ka-band solution, with major airlines opting to replace their existing service providers with Viasat.

Most notable is Delta Air Lines, which sought to transition from Gogo's inflight solution (now owned by Intelsat) to Viasat.

Delta Air Lines' IFC installations on widebody and narrowbody passenger aircraft between Sep-2015 and Sep-2022

In Jan-2021 Delta selected Viasat's Ka-band satellite IFC solution for more than 300 mainline narrowbody aircraft, including new deliveries and retrofits on A321ceos, Boeing 737-900ERs and selected 757-200 aircraft. Under an aggressive roll-out campaign, Delta stated that it planned to "outfit more than 550 aircraft with high-speed, streaming-quality Wi-Fi service" by the end of 2022.

According to CAPA's Aircraft Interiors Database, Viasat has completed more than 300 installations on Delta aircraft to date.

Viasat: further growth expected with scheduled on-order commitments and recent announcements

The IFC supplier shows no sign of slowing down, as it looks to aggressively expand in the North American market.

Viasat secured the following significant orders in early 2022:

Southwest Airlines selected Viasat to linefit its ka-band solution on all new aircraft deliveries. The programme began in autumn 2022.
Breeze Airways selected Viasat to provide its IFC solution onboard the airline's A220-300 fleet. The airline has 80 A220s on order, with purchase options for an additional 40 aircraft; its first A220 with Viasat inflight connectivity is expected to enter service in Oct-2022.

Latin America: another underserved market with potential?

In comparison to their northern counterpart, the Latin American market appears to be relatively underserved, with approximately three quarters of total commercial aircraft without IFC services.

Latin America: IFC installation based on current widebody and narrowbody passenger aircraft between Sep-2015 and Sep-2022

However, suppliers such as Intelsat, Panasonic, Viasat, Inmarsat (previously Gogo) and ANUVU have made inroads over the past seven years, securing service contracts with major Latin American airlines.

According to CAPA's Aircraft Interiors Database, Intelsat has a commanding market share, with its IFC solutions installed on more than 200 aircraft as of Sep-2022, representing 16% of total commercial aircraft in the region.

Latin America is subject to market shift, with majority of on-orders not scheduled for linefit

The majority of aircraft on order are not expected to be line-fitted with inflight connectivity solutions, with approximately 620 aircraft on offer for prospective suppliers.

However, Intelsat is poised to further its presence in the market, after signing a contract with LATAM to supply 2Ku IFC services on A320ceo and A320neos in Feb-2022.

The installations will cover up to 160 aircraft, with the system to be pre-installed by Airbus before delivery of 70 new aircraft.

All installations are expected to be completed by Feb-2025.

Latest global interior updates

Asia and South Pacific

Qantas Group CEO Alan Joyce said the airline's ultra long haul A350-1000 will feature four cabin classes: first with six suites; business with 52 mini suites; 40 premium economy seats; and 140 economy seats.
Bluebox Aviation Systems and Jetstar Group entered an agreement to deploy Blueview on Jetstar's Airbus fleet. The platform will be marketed to passengers as 'Jetstar Entertainment' and is expected to be launched by Jetstar in the coming months.
Philippine Airlines rebranded its domestic premium economy service to Comfort Class on all domestic flights operated by A321ceo, A320, A330 and DHC-8-400 NG aircraft, effective 15-Sep-2022.
MIAT Mongolian Airlines selected Inflight Dublin to provide inflight entertainment (IFE) content and wireless solutions on four of MIAT's aircraft, including three B737s and one B767.

Europe, Middle East and Africa

Aegean Airlines announced that 17 of its aircraft had been equipped with its WiFi, new digital services and upgraded inflight entertainment offering. The airline outlined that its remaining A320neo and A321neo aircraft would be equipped with the solutions by 2025.
AS-IP Tech announced that its 'fflya' inflight Bluetooth messaging platform now incorporated live credit card payment. The system was tested with Wizz Air on A321 aircraft, incorporating the airline's menu into fflya to enable ordering, payment and receipts through the app. It is the first recorded test of Bluetooth IFC technology.
Emirates Airline selected Thales' 'AVANT Up' inflight entertainment (IFE) system to be installed on the airline's upcoming A350 fleet, consisting of 50 aircraft that are scheduled for delivery in 2024.
Emirates Airline announced plans to debut its newly retrofitted A380 aircraft from Dec-2022.
Qatar Airways selected Inmarsat as the inflight connectivity (IFC) provider for the airline's Boeing 787-9 and 737 MAX 10 aircraft.
Xejet selected Moment's 'Flymingo Box' portable wireless inflight entertainment (IFE) solution.

Americas

Frontier Airlines CEO Barry Biffle reported that the airline was in discussions with SpaceX to deploy Starlink satellite internet service across its fleet.
United Airlines joined T-Mobile's 'Coverage Beyond' initiative, providing eligible T-Mobile customers with free inflight WiFi and streaming on selected domestic and short haul international services.

Other OEM news

Viasat and Inmarsat announced the receipt of approval of the proposed combination of their businesses by the UK Government.
MSB signed an agreement with Heart Aerospace to design and develop approximately 60 key structural components for the cabin, flight deck and cargo sections of the ES-30 aircraft.
Safran Passenger Innovations announces a partnership with SkyFive on the integration of Air-to-Ground (ATG) to Safran Passenger Innovations' RAVE Platform.
STELIA Aerospace launched the 'RENDEZ-VOUS' staggered business class seat. The new seat is created by Design Investment for STELIA and developed for widebody aircraft.
AeroChamp Aviation and ANH Structure South Korea announced plans to collaborate to extend aircraft interiors structural design and manufacturing capabilities in the Middle East and South Asia.