Inmarsat and Panasonic Avionics Corporation (Panasonic) have agreed on a strategic collaboration for an initial ten-year period that enables them to combine their highly complementary services to offer broadband inflight connectivity (IFC) paired with high-value solutions and services to customers in the commercial aviation industry worldwide.
This collaboration will enable airlines, aircraft manufacturers and passengers to benefit from the combined expertise of two companies that have been at the forefront of technology and innovation for nearly four decades.
Under the terms of the agreement, Inmarsat will become Panasonic’s exclusive provider of Ka-band IFC for commercial aviation. Panasonic will now be able to offer Inmarsat’s high-speed, broadband connectivity service, GX Aviation, powered by Global Xpress, the world’s first global Ka-band satellite network, owned and managed by a single operator. Panasonic will continue to invest in its own network and, with GX Aviation as a primary offering for new business, will be perfectly positioned to serve both its current and future customers.
In addition, Inmarsat will now be able to offer Panasonic’s market-leading portfolio of services and NEXT solutions to Inmarsat’s commercial aviation customers. This includes customer support services available from Panasonic’s Customer Performance Center and Technical Services teams.
The collaboration, which is already being deployed with a mutual customer, presents a unique opportunity to leverage Inmarsat’s proven track record of high-quality and innovative global mobile connectivity, and Panasonic’s market-leading inflight entertainment, digital services, and connectivity solutions.
Looking forward, Inmarsat and Panasonic will also collaborate on the development of a next generation GX Aviation terminal, as well as new connectivity-enabled services, data analytics, and technology to improve overall end-to-end performance.
By delivering this step-change in aviation services capability, airlines will have access to new and better solutions that address widely recognized industry challenges of capacity, coverage, and compatibility. This will give greater quality, consistency of experience and more choice to airlines and their passengers in the IFC market, which by some estimates could exceed $100 billion by 2035[1].
Executive Comments
Rupert Pearce, Chief Executive Officer, Inmarsat, said that this highly complementary collaboration with Panasonic combines the unique expertise and proven capabilities of both companies to create a market-leading inflight connectivity offer for aircraft manufacturers, airlines and their passengers. IFC is a substantial and fast-emerging sector where the quality of customer experience is paramount. Reliable, high-quality IFC is no longer a luxury for passengers, but an expectation, and will play a vital role in securing an airline’s competitive position in a market. Today’s landmark announcement is clear evidence of Inmarsat delivering on its strategy and strengthens our conviction that, building upon the success of the global GX network, aviation will be a significant individual growth driver of our overall business. It also demonstrates Inmarsat’s commitment to becoming the reference IFC network for airlines around the world.
Hideo Nakano, Chief Executive Officer, Panasonic Avionics, said that for over 10 years, Panasonic has remained steadfast in its commitment to the connected aircraft. Still, many airlines have more than one connectivity partner, and this strategic collaboration ensures that even more airlines have access to a wide variety of industry-leading digital solutions. By adding GX Aviation into the company's NEXT Online portfolio, Panasonic Avionics is recognizing the need for IFC consistency across multiple fleets and enabling digital solutions and services with unified customer support. Clearly, this is truly a tremendous opportunity for our industry. We look forward to working with Inmarsat to provide a wider suite of services and solutions to the world’s airlines.
[1] ‘Sky High Economics: Quantifying the commercial opportunities of passenger connectivity for the global airline industry’, by London School of Economics and Political Science (LSE), 2017