PHOENIX, June 19, 2018 /PRNewswire/ -- The commercial
aviation industry is at the beginning of a technology investment
wave fueled by advancements in high-speed, in-flight Wi-Fi
connectivity. In the new Honeywell Connected Aircraft Report
(NYSE: HON), aviation professionals around the globe in the
commercial aircraft sector reveal that spending on connected
technologies will increase dramatically in the coming years, driven
by a rapidly growing demand for solutions that enhance the
passenger experience, save airlines money and improve operational
efficiency.
Connected technologies are defined as those that make use of
data sent to and from the aircraft to benefit passengers, pilots
and operators. Some examples include applications that track fleet
fuel usage; give pilots landing and navigation aids; crowd-sourced
weather information accessed via mobile devices; and analytics
solutions that use data from "smart" sensors, sending it to
maintenance personnel or aircraft operators during flight.
The report finds that spending will be largely focused beyond
the cabin, with maintenance ranking highest among the pain points
that airline decision makers want to tackle. Investment in
connected technologies is expected to rise significantly during the
next 12 months, and to increase even more rapidly over the next
five years. Honeywell offers more than 100 Connected Aircraft
products and services, including network connections and hardware
and software packages, to enable a high-speed, global Wi-Fi
solution for nearly all aircraft platforms.
"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 No. 1 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 Honeywell Connected Aircraft Report features survey
responses from maintenance personnel, flight and ground crew, fleet
management personnel and other key stakeholders in the commercial
airline sector on near- and long-term technology purchase plans.
Connected Aircraft technologies are seen as one of the most
important long-term investments to improve all-around operations
and competitive standing within the industry. The benefits of these
technologies also go well beyond passenger entertainment in the
cabin. The next wave of investment in connectivity is to address
three main challenges: maintenance effectiveness, fuel consumption
and aircraft turnaround time.
Challenge No. 1: Maintenance
Maintenance issues routinely cause airlines to ground aircraft
minutes before departure, which is never ideal for a business that
relies on taking off and arriving on time and safely. These delays
cost the industry hundreds of millions of dollars a year and
contribute significantly to passenger dissatisfaction. Based on
insight from commercial respondents, improvements in maintenance
are the most important benefit airlines want to see from an
investment in the Connected Aircraft. Maintenance was ranked as the
top priority in the report, with 88 percent of respondents labeling
it as an "Extremely Important" or a "Very Important"
investment.
"In my business — commercial aviation — safety and reliability
is paramount. Therefore, it is high priority to provide preventive,
predictive and reliable maintenance," said one respondent from an
aircraft original equipment manufacturer (OEM).
"We want to be able to predict when a component is about to
fail, and change it before it does," said a fleet management
professional at a passenger airline.
Challenge No. 2: Fuel consumption
Fuel typically accounts for 20 to 40 percent of an airline's
operating costs. If airlines can reduce the amount of fuel used,
that will make a dramatic impact on the bottom line. Therefore,
it's no surprise that 73 percent of survey respondents listed fuel
efficiency as "Extremely Important" or "Very Important" to an
airline's investment plan.
"We are one of the biggest domestic operators with comparatively
lower turnaround time, [so] fuel use data is a big concern for us.
We are operating in a very busy environment; if a single flight is
disrupted, it becomes a great concern to manage the schedule," said
a fleet management employee at a passenger airline.
"Saving fuel, shortening or eliminating delays, and having
better real-time information will result in lower operational
costs. On the customer side, we want to be the brand of choice. The
new generation of business travelers (our most lucrative customer)
wants to be connected at all times and have information readily
available. The airline that can provide this will have a
competitive advantage," said a ground operations employee at a
passenger airline.
Challenge No. 3: Aircraft turnaround time
To keep passengers happy and costs on track, pushing back from
the gate in a timely manner for on-time arrivals is important.
Passenger experience was one of the top reasons for airlines to
invest in the Connected Aircraft, with 76 percent of respondents
listing it as "Extremely Important" or "Very
Important."
"Connected-related purchases will increase operational
efficiency, improve fleet management, provide energy efficiency,
ensure flight safety, give customers delight, [and reduce] aircraft
turnaround time and costs," said an aircraft research and
development expert at an aircraft OEM.
Big investment now, bigger investment later
Investing in the Connected Aircraft is important for airlines
around the globe. In fact, 81 percent of respondents cited
connected technologies as a high or very high priority for their
business. And while 86 percent of respondents said they were
looking to make a Connected Aircraft purchase over the next year,
the number jumps to 95 percent over the next five years.
"[Connectivity technologies] are a high priority because of the
accurate statistical data they provide in all sorts of ways. It's
very important in this industry to have tools that help you be
proactive rather than reactive. Connectivity-related products go a
long way in making this approach possible," said a ground
operations professional from a passenger airline.
According to the report, 61 percent of respondents are planning
to spend more in the next year than they currently do on Connected
Aircraft technology, and 69 percent are planning to spend even more
in the next five years. Airlines are also willing to give that
investment time to pay off; 27 percent expect a return between 12
and 18 months, and 28 percent expect a return between 19 months and
three years.
About half of the respondents expect to spend up to $1 million per aircraft on connectivity
technologies over the next year, with most looking to spend
$100K to $500K. The bigger jump is seen over the next five
years, with 38 percent of respondents reporting that they expect to
spend at least $1 million per
aircraft on connected technology during that time span. A full 17
percent plan to spend more than $10
million per aircraft on connected technologies over the next
five years. These significant investments signal the increasing
value of connected technologies in the coming years.
How Honeywell can help
Connectivity has reached a point of maturation where its value
is being seen both inside and outside the cabin. Connected
technologies help airlines and related businesses stay competitive
and ahead of the curve, and help solve some of the industry's
biggest problems.
"The Connected Aircraft brings immense opportunity to increase
flight efficiency and productivity for pilots, maintainers and
flight operations managers, while delivering a safer and more
enjoyable experience for passengers," Slyker said. "Data is
allowing us to help airlines maximize their aircraft utilization
and increase their return on investment."
With a unique portfolio that spans network connectivity,
hardware, software and a host of GoDirect® services, Honeywell is a
leader in providing Connected Aircraft solutions for airlines,
business jets, general aviation, helicopters and defense. The
company's more than 100 Connected Aircraft products and services
help customers predict maintenance, save fuel, shorten aircraft
turnaround time, reduce delays and turbulence, and give pilots
up-to-the-minute info while in flight. Honeywell has the solutions
to help every customer harness its data to streamline operations,
reduce costs and increase safety. By using Honeywell's JetWave™ to
enable in-flight Wi-Fi and the more than 50 GoDirect services
Honeywell offers, commercial customers can streamline operations to
continue pushing the aviation industry forward.
About the survey
An online survey of 106 respondents from around the globe was
completed in partnership with Gerson Lehrman Group. Respondents
were first vetted with qualifying questions to help ensure their
knowledge on the topic and that they were decision-makers or
purchasers. If they met the criteria, the respondents proceeded to
an online survey that featured a combination of multiple-choice and
open-ended questions.
Supporting Resources
- Read more about the Connected Aircraft Report
- Read more about Honeywell Aerospace on the Follow The Aero
blog
- Like Honeywell Aerospace on Facebook
- Follow @Honeywell_Aero on Twitter
Honeywell Aerospace products and services are found on virtually
every commercial, defense and space aircraft, and its turbochargers
are used by nearly every automaker and truck manufacturer around
the world. The Aerospace business unit develops innovative
solutions for more fuel-efficient automobiles and airplanes, more
direct and on-time flights, safer flying and runway traffic, along
with aircraft engines, cockpit and cabin electronics, wireless
connectivity services, logistics, and more. The business delivers
safer, faster, and more efficient and comfortable
transportation-related experiences worldwide. For more information,
visit www.honeywell.com or follow us at @Honeywell_Aero and
@Honeywell_Turbo.
Honeywell (www.honeywell.com) is a Fortune 100
software-industrial company that delivers industry-specific
solutions that include aerospace and automotive products and
services; control technologies for buildings, homes, and industry;
and performance materials globally. Our technologies help
everything from aircraft, cars, homes and buildings, manufacturing
plants, supply chains, and workers become more connected to make
our world smarter, safer, and more sustainable. For more news
and information on Honeywell, please visit
www.honeywell.com/newsroom.
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