COMPLETING THE Moderated by

CONNECTED Gillian Jenner

Editorial Consultant
JOURNEY?
2016 AIRLINE IT TRENDS
6 JULY 2016
AIRLINES IT TRENDS: REPRESENTING OVER
55% OF GLOBAL PASSENGER TRAFFIC

% of survey responders in categories above

2 | Completing the connected journey? | Confidential | SITA 2016

SPEAKERS

Nigel Pickford, Director, Market Insight

Tim Anstey, Chief Architect, Cabin & Network Systems

Greg Ouillon, Chief Technology Officer

3 | Completing the connected journey? | Confidential | SITA 2016

 AGENDA
2016 Airline IT Trends Highlights SITA

Operations & the connected aircraft Boeing

Passengers & the connected aircraft SITAONAIR

The Internet of Things

Questions and Answers

4 | Completing the connected journey? | Confidential | SITA 2016

 2016 AIRLINE IT
TRENDS HIGHLIGHTS

Nigel Pickford,
Director, Market Insight, SITA

5 | Completing the connected journey? | Confidential | SITA 2016

AIR TRANSPORT IT TREND SURVEYS Visit: sita.aero
AND REPORTS

Airport IT Trends
Airline IT Trends

Passenger IT Baggage Report

Trends

6 | Completing the connected journey? | Confidential | SITA 2016

GROWING OPTIMISM THAT IT
BUDGETS ARE SET TO INCREASE

How is your Operating & Capital IT&T spend expected to change in 2017, compared to 2016?

7 | Completing the connected journey? | Confidential | SITA 2016

PASSENGERS INCREASINGLY CONNECTED

Which of the following self-service initiatives have you implemented in your airline?
* Home bag-tag printing not surveyed in 2015

8 | Completing the connected journey? | Confidential | SITA 2016

LOCATION-BASED SERVICES
ON THE INCREASE (AND ON SMARTWATCH)

Which of the following MOBILE-BASED SERVICES do you provide, or plan to provide, via passengers
smartphone or tablet or smartwatch applications?

9 | Completing the connected journey? | Confidential | SITA 2016

 EXPECT A MAJOR LEAP IN
CONNECTEDNESS AT THE AIRPORT

Which of the following services do you provide or plan to provide that will leverage beacons/sensors?

10 | Completing the connected journey? | Confidential | SITA 2016

 In terms of your future IT&T
investment programmes, where do
you plan to apply your resources in
the next 3 years?

AIRLINES
Cloud
EMBRACE Services
84%
EVERYTHING AS
A SERVICE. Business
91%
Intelligence

WHILE THE Predictive

84%
Analytics
DEMAND FOR
DATA, IS ABOUT
TO EXPLODE Internet of
68%
Things

11 | Completing the connected journey? | Confidential | SITA 2016

IOT TECH ALREADY ON THE RADAR
FOR PASSENGERS AND STAFF

When do you first anticipate trialling or piloting the following new and emerging technologies in your airline?

12 | Completing the connected journey? | Confidential | SITA 2016

CYBER SECURITY IS KEY FOR AIRLINES
97% 96% 96%
91%
20%
19% 23% 30%

R&D By 2019

Major program Implemented

72% 77% 73% 66%

Cyber security General security User Security incident

initiatives awareness for staff education / response
training management
In terms of your future IT&T investment
programmes, where do you plan to apply your
What is the status of the following cyber security initiatives in your airline?
resources in the next 3 years?

13 | Completing the connected journey? | Confidential | SITA 2016

 2016 AIRLINE IT TRENDS - SUMMARY

Passengers are ever more connected due to Airline investment in mobile.

And Airlines are recognising potential new benefits from IoT.

IT investment is on the up
On ground connectedness is leading and setting expectations
The proliferation of connected things will bring new opportunities,
Big data becomes critical
. as do robust cyber security measures

But how & when can the connected aircraft equally leverage the promise of IoT ?

14 | Completing the connected journey? | Confidential | SITA 2016

 OPERATIONS & THE
CONNECTED AIRCRAFT

Tim Anstey,
Chief Architect,
Cabin & Network Systems
BOEING

15 | Completing the connected journey? | Confidential | SITA 2016

AIRLINES OPERATING CONNECTED
AIRCRAFT TO DOUBLE BY 2019

What is the status of connected aircraft deliveries in your airline?

16 | Completing the connected journey? | Confidential | SITA 2016

ENORMOUS OPPORTUNITY TO IMPROVE
EFFICIENCY

17 | Completing the connected journey? | Confidential | SITA 2016

 -Digital Airline (n): An adaptive,
continuously optimized, real-time
operation that delivers step changes in
efficiency, profitability, and customer
experience to drive long-term competitive
advantage.

18 | Completing the connected journey? | Confidential | SITA 2016

AIRLINES INVESTING IN CONNECTED
OPERATIONAL PROGRAMS
92%
81% 79% 80%
21% 70%
31% 30% 28%
26%
R&D

Major program
71%
50% 49% 44% 52%

Electronic flight bag Equipping staff Wireless services Equipping staff Wireless in-flight
solutions with tablets for crew with smartphones services for
passengers
In terms of your future IT&T investment programmes, where do you plan to apply your resources in the next 3 years?

19 | Completing the connected journey? | Confidential | SITA 2016

TRENDS & TRANSFORMATIONS
Connectivity Unlimited Hardware transition
everywhere resources to software

Human & computer New challengers to

gap closing traditional companies

20 | Completing the connected journey? | Confidential | SITA 2016

NEW AIRPLANES BRING ENTERPRISE
CAPABILITY

21 | Completing the connected journey? | Confidential | SITA 2016

IOT ENABLED MONITORING ACTIVITIES HIGH
ON AIRLINE AGENDAS

Which of these on board Internet of Things enabled initiatives will you focus resources on in the next three years?

22 | Completing the connected journey? | Confidential | SITA 2016

DAY OF FLIGHT CONNECTIVITY
Connectivity in flight
Preflight:
Review maintenance logs
Review flight plan, weather
Read MEL descriptions
23 | Completing the connected journey? | Confidential | SITA 2016
Ramp/taxi:
Prepopulate data on EFB
View airport, departure charts
Calculate take off
performance
Go through checklist
In-Flight Connectivity Ground Connectivity
(opportunity to extend decision window) Decision window
Cruise:
Post flight:
Log flight progress
File pilot log, journey
Calculate landing performance
report, final flight folder
View en route, approach charts
Send performance
Pull data from FMS to log flight
calculations off board
progress to plan
Update maintenance
records
Handle disruptions:
Receive real time weather updates
Updated flight plans
Send faults to ground
Recalculate landing performance
INVESTMENT SEEN AS THE MAJOR
CHALLENGE TO IOT CAPABILITIES

To what extent do you see these as challenges when it comes to developing new Internet of Things enabled services?

24 | Completing the connected journey? | Confidential | SITA 2016

 MOBILE DEVICE CONNECTIVITY
Connectivity is an integrated feature

High-bandwidth network access from

nearly anywhere world-wide

Typically, isolated from the airplane

network

Many current EFB use cases are satisfied

by a ground-only connected device

Mobility enables new contexts within

which to access and process information

25 | Completing the connected journey? | Confidential | SITA 2016

BENEFITS FOR FLIGHT OPERATIONS
Flight crews and operations are
always connected

Door-to-door workflow integration

Real-time strategic weather

Increased situational awareness

Improved flight efficiency and

passenger comfort

Enhanced decision making

analysis tools

26 | Completing the connected journey? | Confidential | SITA 2016

SUMMARY

Operational efficiencies are enabled

by connectivity

Integrated device connectivity is

adequate for many of todays EFB
applications

Integrated airplane connectivity is

necessary to realize full benefits

Be process ready take advantage

of early notification to improve
decision outcomes

27 | Completing the connected journey? | Confidential | SITA 2016

 PASSENGERS &
THE CONNECTED AIRCRAFT

Greg Ouillon,
Chief Technology Officer,
SITAONAIR

28 | Completing the connected journey? | Confidential | SITA 2016

CONNECTED AIRCRAFT TO OVERCOME
MAIN CHALLENGES TO DELIVER MOBILE
SERVICES?

Where do you see the main challenges to deliver sales/service to passengers mobile devices in the next 3 years?

29 | Completing the connected journey? | Confidential | SITA 2016

CONNECTED AIRCRAFT: ADDRESSING CORE
BUSINESS DRIVERS

grow differentiate improve improve

ancillary passenger air navigation operational
revenue experience safety efficiency

Broadband connectivity is enabling a new long cycle of innovation

30 | Completing the connected journey? | Confidential | SITA 2016

FROM CONNECTED AIRCRAFT TO e-AIRCRAFT
Requires modular, integrated solutions supported by common capabilities

Onboard software
Onboard systems
and data integration

Secure cockpit and cabin

Broadband Aero Satcom aircraft communications
Wi-Fi 3G/4G
Satcom VHF/VDL

Ground IT, cloud, networks

Connected to all stakeholders
Customer value examples
data management & brokerage Efficiency Flight profiling and optimization
Maintenance Proactive life management
Content exchange and collaboration
NB. Clean up and use latest
graphics from platform

Maintenance - REMOVE

Content ATC Airline OEM

Availability Schedule stress management
MRO Airframer Apps and systems integration
INSERT APPROVED GRAPHICS

24*7 global service operation

31 | Completing the connected journey? | Confidential | SITA 2016

Rolls-Royce proprietary information
FROM CONNECTED AIRCRAFT TO e-AIRCRAFT
Delivering true business benefits

Delighted Passenger
Onboard systems
Increased revenue
On-time performance
Broadband Aero Satcom
Satcom
Wi-Fi 3G/4G
VHF/VDL
Fleet availability and utilization
Lower cost of maintenance
Fuel efficiency
Customer value examples
data management & brokerage Efficiency Flight profiling and optimization
Maintenance Proactive life management
Shared situational awareness
NB. Clean up and use latest
graphics from platform

Maintenance - REMOVE
Availability Schedule stress management
Content ATC Airline OEM MRO Airframer
Cost-effective compliance
INSERT APPROVED GRAPHICS

Increased throughput

32 | Completing the connected journey? | Confidential | SITA 2016

Rolls-Royce proprietary information
BETTER PASSENGER EXPERIENCE IS THE
DRIVER FOR AIRLINES

What is the key benefit you have gained (or expect to gain) from connected aircraft?

33 | Completing the connected journey? | Confidential | SITA 2016

CONNECTED CABIN DIRECTION
Broadband connectivity is gradually changing the approach to delivering Passenger Experience

Ground like Internet and The satellites are here, things will always get better
mobile experience Dynamic traffic management, shaping &filtering, profiling

Monetizing and engaging Concierge, loyalty, passenger journey, sales and retail
passengers Advertising and sponsoring

Services delivered from the ground

Accelerating innovation lifecycle Virtualizing onboard footprint with shortened software cycles

Continuous IFE and w-IFE update with O&D localized content

Zero-touch content update Streaming & broadcasting blending in new experience

Passenger centric service Service consistency across platforms and fleet

Flawless availability, globally 24*7

34 | Completing the connected journey? | Confidential | SITA 2016

MORE CONNECTED AIRCRAFT ENABLES
MORE CHOICE ON-BOARD

Which IN-FLIGHT services do you provide or plan to provide?

35 | Completing the connected journey? | Confidential | SITA 2016

INTERNET ONAIR
The opportunity

Todays passenger expects a consistent, high-speed internet connection at all times, even when in
the air. The quality and availability of that connection can influence carrier choice.

36 | Completing the connected journey? | Confidential | SITA 2016

MOBILE ONAIR
The opportunity

Mobile phones offer the average traveller the opportunity to remain in contact at all times. Giving
your passengers this opportunity in the air makes for stress-free journeys and onward travel

37 | Completing the connected journey? | Confidential | SITA 2016

ONAIR PLAY
The opportunity
The vast majority of airline passengers possess Personal Electronic Devices, allowing each to enjoy
tailored entertainment content on the move. With a seamless, high-speed connection on-board every
passenger can enjoy varied, bespoke entertainment content

38 | Completing the connected journey? | Confidential | SITA 2016

GETTING RETURNS ON CONNECTED
AIRCRAFT
The next 5 years will require focused integration across technology components and stakeholders

1. Connected ? But Im connected !

2. Its all about data and managing end-to-end

3. Application is driving digital transformation

4. Business processes run on 24*7 global service

5. Digital transformation choices across the fleet

and along the technology life-cycle

39 | Completing the connected journey? | Confidential | SITA 2016

 DRAFT

Thank you
Download any of our reports at:
www.sita.aero/surveys
40 | Completing the connected journey? | Confidential | SITA 2016