On-board connectivity continues apace, as the new ‘in-flight must-have’ for both passengers and crew. As it becomes the default expectation for next generation travelers, tablets and mobile devices in the air will impact passenger service levels and customer satisfaction as much as they are on the ground. From an operational point of view, what are the IT needs for the cabin, cockpit and data handling to ground? What innovations can we expect, and how do we see the development of new services for keeping customers happy and loyal? www.sita.aero/surveys A revolution in the air – improving the flying experience: David Stewart, ICF International

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Connected Aircraft Outlook and Opportunities
June, 2014
Presented by:
David Stewart
Global Lead, Aerospace & MRO Practice  ICF International

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Fleet Development

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Over the next decade, the fleet will grow to 31,000 with over 11,300
new generation IP-enabled aircraft
FLEET DEVELOPMENT
Air Transport Jet Fleet Development
2013 vs 2022
Highlights
 ICF forecasts average air travel
growth of 3.9% through 2023
 ~940 extra active aircraft per year
 ~900 annual retirements by 2023
 Huge growth of new generation
aircraft – 42% CAGR
 How much of the current mature
fleet might be retrofitted?
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2013 2023
Mature - Out of
Production, -
7.8%
Mature - In
Production, 1.7%
Excludes Turboprops
Source: ICF SH&E
New: A380, 747-8, 787, 777X, A350, A320neo, 737MAX, EJets E2, CSeries, C919, ARJ21, MRJ, MS-21, Superjet
Aircraft Fleet
CAGR
Total = 3.6%

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The rapid ramp-up of New Gen aircraft will accelerate the demand for
new e-enabled services
FLEET DEVELOPMENT
Air Transport Production Forecast
 Introduction and rapid build up of A320NEO and 737 Max  Introduction and build up of A350XWB, 787, 777X
Source: ICF SH&E
“Our aircraft management approach will be vastly different on the 787”
European long haul airline
Narrowbody (Units)
0
100
200
300
400
500
600 A320
A320NEO
B737
B737 MAX
C919
CSeries
MS-21
0
20
40
60
80
100
120
140
160
180 A330
A350XWB
A380
B748
B767
B777
B777X
B787
Widebody (Units)

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Come 2033, the New Gen fleet will be huge - over 29,000 aircraft or 75%
FLEET DEVELOPMENT
New Gen
Others
2033 Air Transport Jet Fleet
(38,600 total)
Source: ICFI analysis.
Excludes Turboprops
Highlights
 ICF forecasts the total Air
Transport jet fleet to be
38,600 by 2033
 29,000 (75%) of these will be
new generation platforms

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E-enabled opportunities

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New technologies will drive greater operational efficiency and facilitate
better schedule reliability and enhanced services for the passenger
AIRCRAFT AND CREW OPERATIONS IMPLICATIONS
Functionalities affected by new technologies
Flight Management
Inter-operability. EFB,
connectivity and data analytics
Impacting ATM, fuel and
operational efficiencies
Operations Control Passenger Service
To protect aircraft and schedule
integrity…
By coordinating flight, crews,
passenger, maintenance and
ground operations
Data exchange and analytics
enable better on- and off-board
decision making
Information management and
data analytics
Impacting connection
management and enabling
improved service opportunities
on- and off-board
Significant utilization, operations, cost and on-board service benefits

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E-enabled technologies in maintenance will additionally reduce costs
and facilitate better schedule reliability for passengers
Functionalities affected by new technologies
Line maintenance
 17 % of airline MRO spend
 Handheld devices being
introduced
 Significant time savings by
providing mechanics
access to information at
the aircraft
Maintenance planning Health
management
Supply chain
management
Technical document
management
 30% of MRO systems are
legacy
 New aircraft types drive
adoption of new systems
 Mobile technology,
electronic task cards and
xml will improve updates
of- and interaction
between systems
 Traditionally used for ex-
post reliability diagnostics
 Advances in data
generation and analytics
will enable prognostics
and predictive
maintenance
 Provides design feedback
for OEMs
 MRO supply chain holds
$47B of inventory
 More EDI and RFID
technology, automation
and visibility/traceability
can decrease work in
progress, increase pooling
and increase inventory
utilization
 Widespread use of
services that scan paper
records and make them
available
 ETL/EFB, cloud services
and mobile devices will
change generation,
handling and storage of
technical records
AIRCRAFT MAINTENANCE IMPLICATIONS
A key issue for resolution: who owns the data?

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Opportunities exist to improve passenger experience significantly
CABIN AND PASSENGER IMPLICATIONS
THE FUTURE IFE?
 Seamless experience from
ticketing to arrival
 Easy to use systems, consistent
with experience elsewhere
 Use of (tablet) device at all times
 Security
 Access to early release content?
 Power/re-charging availability
“Airlines will no longer be hardware providers, rather connectivity providers”

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What else does the future hold?
CABIN AND PASSENGER IMPLICATIONS
Cabin environment control?
Lighting controls
Attendant call & drinks/
meal pre-orders and
requests
Customized content
& entertainment
VOIP or GSM calling
Shopping
experience
Reliable, capable and affordable IP connectivity to ground throughout flight will be critical

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The challenge to airlines and equipment suppliers is to keep up with
passenger expectations
CABIN AND PASSENGER IMPLICATIONS
 Expectation of being constantly engaged
and connected
 Expectation of faster and more
reliable connection speeds
 Expectation of the “latest and
greatest”
 Expectation of affordability and value
Source: digitalnewsasia.com

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David Stewart
Head of Aerospace and
MRO
Watling House
33 Cannon Street
London EC4M 5SB
United Kingdom
+44 (0)20 3096 4931
david.stewart@icfi.com
Thank You!

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Source: presentation of David Stewart, ICF International at the
2014 SITA Air Transport IT Summit, Brussels.
2014 Air Transport IT Summit