This year could be the start of major spending on Connected Aerospace technologies, as airlines see the benefits of pairing these technologies with data analytics.
Based on the Connected Aircraft Report that Honeywell will release today (June 19), 47% of surveyed airlines say they plan to spend up to $1 million per aircraft over the next year, with the majority of those looking at $100,000-$500,000. However, over the next five years, “38%
are looking to spend $1 million-10 million per aircraft, so it really jumps,” says Kristin Slyker, vice president, Connected Aircraft, Honeywell Aerospace.
Airlines are investing in Connected Aerospace hardware and services.
Slyker says if airlines have already invested in connected technologies, it’s typically been for satellite communications and/or WiFi. While some airlines are still finalizing or advancing their WiFi strategy, the survey results represent “a leap beyond just putting connectivity hardware and air-time services on the aircraft: It means that airlines are ready to benefit from the data coming off airplanes in terms of having some real and tangible, like up to 1% savings on fuel, which can represent up an average of up to $50K aircraft per year,” she says.
“We have really turned a corner in terms of the overall acceptance and adoption that data can drive benefits,” says Slyker. She thinks this survey represents “that airlines are ready for IoT (Internet of Things) and they want to take advantage of it for immediate returns on investment.”
The top priority from connected technologies expenditures in the near future is maintenance,
with 88% of respondents classifying it as “extremely important” or “very important.” Fuel, labor and maintenance costs are typically amongst the highest pieces of an airline’s direct operating costs, and with fuel costs on the rise, and labor expenses climbing for some carriers, too, maintenance is a target for cost savings to decrease cost per seat mile.
Honeywell’s report found that maintenance “was a full 10 points higher than any other need” that respondents indicated, says Slyker.
Big data analytics and predictive maintenance already are demonstrating efficiencies, so there is tangible proof that the connected technologies are working.
“With predictive mx, we’re able to save airlines 35% on their inoperative equipment events with 99% accuracy,” so there’s about a 1% no-fault found rate, says Slyker.
“A benefit like that is really attractive to airlines and that’s why you’re seeing that level of interest,” she says.
After maintenance, airline respondents indicated connected technologies should deliver benefits in pilot technologies and passenger experience.
Honeywell surveyed the global airline market earlier this year and the report results are based on 106 prescreened, qualified respondents.