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Panasonic announces Lufthansa as GCS Launch Customer

In one of the industry's worst kept secrets, Panasonic was announced today as Lufthansa's means of returning to in-flight Internet. The airline had been a great (probably the greatest) proponent of Boeing's Connexion service. The demise of the Connexion service was a cause of significant irritation to the airline. It has taken them years to get this service back on track.
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Panansonic PR: Frankfurt, Germany, 12th, October 2009 – Today, Lufthansa announced the return of in-flight passenger connectivity with the re-launch of their FlyNet branded broadband internet service. FlyNet will utilize the Panasonic Avionics Corporation (Panasonic) Global Communications Suite. Lufthansa aims to equip a major part of its long-range fleet with FlyNet within the first year of operation.

The Panasonic Global Communications Suite consists of the eXConnect broadband service, the eXPhone GSM service, and the Panasonic Airborne Television Network.
Panasonic’s eXConnect is designed to provide global, two-way broadband connectivity to support a wide range of passenger and crew applications, including Internet access, voice, data, and thee ability to monitor and transmit airline operational data in real time at speeds of up too 50 Mbps to the aircraft.

The eXPhone solution allows passengers to use their mobile (cell) phones to make voice calls, send SMS text messages, or utilize data services in-flight , virtually anywhere in the world. The eXPhone system is designed too be flexible, giving the airline full control over the services offered with the ability to restrict certain services when appropriate.

The Panasonic Airborne Television Network is a revolutionary approach to live, in-flight television. This proprietary, dedicated network is provided by Panasonic to offer a global, synchronized viewing experience with live news, sports, financial and special events to airline passengers. Panasonic has established licensing relation ships directly with top con tent providers to provide the programming for the service.

Panasonic has assembled and integrated a world class team of technology and service providers to collectively deliver the Global Communications Suite. The eXPhone system and service are provided in conjunction with AeroMobile, the award-winning provider off in-flight mobile communication services and technology.

MTN Satellite Communications is the leading global service provider f at-sea communications, connectivity and content services and will provide the Ku band satellite network services for Panasonic’s Global Communications Service business. More details about the satellite networtk will bee provided in the coming weeks.

Panasonic has contracted with EMS Technologies’ Defense & Space Division, to provide the advanced dual-panel, satellite-tracking antenna, developed collaboratively by Panasonic and EMS. This unique design delivers greater performance and global coverage, especially at lower latitudes such as near the equator. The antenna’s dual polarization receive capability, unique to the EMMS Technologies antenna system, doubles the available receive bandwidth.

Panasonic licenses iDirect's state of the art satellite IP router technology as a core component of the Panasonic eXConnect in-flight satellite transmission platform. iDirect is a world leader in satellite-based IP communications technology. iDirect's innovative spread spectrum waveform diffuses the transmission of satellite bandwidth while maintaining a high data rate, which dramatically conserves satellite space segment and lowers bandwidth costs for airlines.

In November of this year, Panasonic is installing their eXConnect system on a private Boeing Business Jet (737) to conduct the initial flight tests. Additional information on this aircraft and customer will be announced in Orlando, Florida at the National Business Aviation Association (NBAA) Annual Conference October 20, 2009. “We are thrilled to be working with Lufthansa as our launch customer of the eXConnect broadband service.” states Paul Margis, Chief Executive Officer. “Panasonic had already assembled the best of class suppliers to provide the full range of services in the Panasonic Global Communications Suite – and now, in Lufthansa, we have the perfect launch customer to match.”

Panasonic announces Lufthansa as GCS Launch Customer

In one of the industry's worst kept secrets, Panasonic was announced today as Lufthansa's means of returning to in-flight Internet. The airline had been a great (probably the greatest) proponent of Boeing's Connexion service. The demise of the Connexion service was a cause of significant irritation to the airline. It has taken them years to get this service back on track.
—————
Panansonic PR: Frankfurt, Germany, 12th, October 2009 – Today, Lufthansa announced the return of in-flight passenger connectivity with the re-launch of their FlyNet branded broadband internet service. FlyNet will utilize the Panasonic Avionics Corporation (Panasonic) Global Communications Suite. Lufthansa aims to equip a major part of its long-range fleet with FlyNet within the first year of operation.

The Panasonic Global Communications Suite consists of the eXConnect broadband service, the eXPhone GSM service, and the Panasonic Airborne Television Network.
Panasonic’s eXConnect is designed to provide global, two-way broadband connectivity to support a wide range of passenger and crew applications, including Internet access, voice, data, and thee ability to monitor and transmit airline operational data in real time at speeds of up too 50 Mbps to the aircraft.

The eXPhone solution allows passengers to use their mobile (cell) phones to make voice calls, send SMS text messages, or utilize data services in-flight , virtually anywhere in the world. The eXPhone system is designed too be flexible, giving the airline full control over the services offered with the ability to restrict certain services when appropriate.

The Panasonic Airborne Television Network is a revolutionary approach to live, in-flight television. This proprietary, dedicated network is provided by Panasonic to offer a global, synchronized viewing experience with live news, sports, financial and special events to airline passengers. Panasonic has established licensing relation ships directly with top con tent providers to provide the programming for the service.

Panasonic has assembled and integrated a world class team of technology and service providers to collectively deliver the Global Communications Suite. The eXPhone system and service are provided in conjunction with AeroMobile, the award-winning provider off in-flight mobile communication services and technology.

MTN Satellite Communications is the leading global service provider f at-sea communications, connectivity and content services and will provide the Ku band satellite network services for Panasonic’s Global Communications Service business. More details about the satellite networtk will bee provided in the coming weeks.

Panasonic has contracted with EMS Technologies’ Defense & Space Division, to provide the advanced dual-panel, satellite-tracking antenna, developed collaboratively by Panasonic and EMS. This unique design delivers greater performance and global coverage, especially at lower latitudes such as near the equator. The antenna’s dual polarization receive capability, unique to the EMMS Technologies antenna system, doubles the available receive bandwidth.

Panasonic licenses iDirect's state of the art satellite IP router technology as a core component of the Panasonic eXConnect in-flight satellite transmission platform. iDirect is a world leader in satellite-based IP communications technology. iDirect's innovative spread spectrum waveform diffuses the transmission of satellite bandwidth while maintaining a high data rate, which dramatically conserves satellite space segment and lowers bandwidth costs for airlines.

In November of this year, Panasonic is installing their eXConnect system on a private Boeing Business Jet (737) to conduct the initial flight tests. Additional information on this aircraft and customer will be announced in Orlando, Florida at the National Business Aviation Association (NBAA) Annual Conference October 20, 2009. “We are thrilled to be working with Lufthansa as our launch customer of the eXConnect broadband service.” states Paul Margis, Chief Executive Officer. “Panasonic had already assembled the best of class suppliers to provide the full range of services in the Panasonic Global Communications Suite – and now, in Lufthansa, we have the perfect launch customer to match.”

Lufthansa buys a stake in JetBlue

Podcast here.

SAS tries to sell its bmi stake

bmi stock is a hot commodity right now. The airline's slots at Heathrow have shot up in value. Scandinavian Airlines has been touting its 20% stake in bmi this week, trying to find a buyer among other airlines or private equity. An obvious buyer is Lufthansa, the other major stakeholder than Sir Michael Bishop, the CEO.

There is a lot of jockeying going on right now among Europe's airlines. Reports are that Lufthansa is sniffing around Alitalia. Texas Pacific is also looking there, as well as at Iberia. The three main players (and alliances) likely to be left standing after an consolidation will include British Airways (a stakeholder in Iberia already), Air France/KLM and Lufthansa. The question will be which of the others will be aligned with which of these three.

SAS' stake in bmi is a great first card to play. SAS is in the Star Alliance, making it a friend of Lufthansa. So a deal between them on bmi is likely. It could be that SAS goes public on its bmi stake sale to make sure it gets the highest price – friendship only goes so far, after all.

SAS tries to sell its bmi stake

bmi stock is a hot commodity right now. The airline's slots at Heathrow have shot up in value. Scandinavian Airlines has been touting its 20% stake in bmi this week, trying to find a buyer among other airlines or private equity. An obvious buyer is Lufthansa, the other major stakeholder than Sir Michael Bishop, the CEO.

There is a lot of jockeying going on right now among Europe's airlines. Reports are that Lufthansa is sniffing around Alitalia. Texas Pacific is also looking there, as well as at Iberia. The three main players (and alliances) likely to be left standing after an consolidation will include British Airways (a stakeholder in Iberia already), Air France/KLM and Lufthansa. The question will be which of the others will be aligned with which of these three.

SAS' stake in bmi is a great first card to play. SAS is in the Star Alliance, making it a friend of Lufthansa. So a deal between them on bmi is likely. It could be that SAS goes public on its bmi stake sale to make sure it gets the highest price – friendship only goes so far, after all.

British Airways ponders Fortress Heathrow

British Airways is mulling a £1 billion bid for low-cost rival bmi, reports in the Times and The Telegraph said.

The chairman of bmi, Michael Bishop, a 50% shareholder (the other owner is essentially Lufthansa), is thought to have received a number of approaches from airlines looking to buy his stake. Although he has so far refused to sell, the Times said potential bidders believe he will offload his stake later this year.

BA is believed to have raised the issue with him already and is monitoring the situation closely with a view to bidding if his stake is put up for sale, the newspaper said. In a separate report, the Times said that the Texas Pacific Group is considering a E4B bid for Iberia — a move that could force BA to launch a rival offer.

It would appear that BA has really not been as clever as people would have thought. The tactics and strategies discussed here should have been in place some time ago. With Open Skies now a (delayed) reality, BA's reaction has been slow. One might have thought they would have been ready with deals in place. Buying bmi and increasing its stake in Iberia while buying a new long haul fleet has to be keeping BA managers up nights. Happily, bmi is involved with Lufthansa and the latter appears to have Iberia in its sights. Could some sort of accommodation be reached? BA people refer to Lufthansa as Luftwaffe. The Germans no doubt have a nickname for BA also. Cooperation seems unlikely.

But if BA were to weigh up its Iberia stake against bmi, we think bmi gets the nod. Could BA do a deal with Lufthansa where Iberia goes to the Germans and bmi becomes a part of BA? Such a move gives BA just over 50% of Heathrow's slots, which would be very useful right now.

Happily for Michael Bishop, Virgin Atlantic is also making eyes at him. Things have never looked better for Mr. Bishop. It may be a great time to retire.

More on this slot business at T2Impact.com – link.

British Airways ponders Fortress Heathrow

British Airways is mulling a £1 billion bid for low-cost rival bmi, reports in the Times and The Telegraph said.

The chairman of bmi, Michael Bishop, a 50% shareholder (the other owner is essentially Lufthansa), is thought to have received a number of approaches from airlines looking to buy his stake. Although he has so far refused to sell, the Times said potential bidders believe he will offload his stake later this year.

BA is believed to have raised the issue with him already and is monitoring the situation closely with a view to bidding if his stake is put up for sale, the newspaper said. In a separate report, the Times said that the Texas Pacific Group is considering a E4B bid for Iberia — a move that could force BA to launch a rival offer.

It would appear that BA has really not been as clever as people would have thought. The tactics and strategies discussed here should have been in place some time ago. With Open Skies now a (delayed) reality, BA's reaction has been slow. One might have thought they would have been ready with deals in place. Buying bmi and increasing its stake in Iberia while buying a new long haul fleet has to be keeping BA managers up nights. Happily, bmi is involved with Lufthansa and the latter appears to have Iberia in its sights. Could some sort of accommodation be reached? BA people refer to Lufthansa as Luftwaffe. The Germans no doubt have a nickname for BA also. Cooperation seems unlikely.

But if BA were to weigh up its Iberia stake against bmi, we think bmi gets the nod. Could BA do a deal with Lufthansa where Iberia goes to the Germans and bmi becomes a part of BA? Such a move gives BA just over 50% of Heathrow's slots, which would be very useful right now.

Happily for Michael Bishop, Virgin Atlantic is also making eyes at him. Things have never looked better for Mr. Bishop. It may be a great time to retire.

More on this slot business at T2Impact.com – link.

Airline consolidation in EC

Even without the Open Skies issue, it seems Euro-airlines are starting to coalesce into bigger groups. Last week it was the in the UK, this week its in Germany. Spain's Iberia may be in play, depending on you read and listen to.

Air Berlin agreed to acquire 100% of LTU for €140m in cash plus the assumption of between €190 and 200m of debt. Through this acquisition, Air Berlin become the fourth largest airline for European traffic, behind Ryanair, Air France/KLM and Lufthansa.

Note the action is among airlines that are not exactly legacy carriers. Its the grow, grow, grow attitude that the likes of Lufthansa has to be watching. There are only so many people – and as noted before, Euro-populations are not growing.

Air travel seems to be fragmenting more and more. Rather than a rosy future for LCCs, there is an increasing case of hybrids developing. This idea was first put forward by Timothy O'Neil-Dunne at T2Impact.com. The Internet continues to play its part; driving consumers to shop around for the pieces they want. Not for them the one-size-fits-all. The future in the EC seems to be evolving towards a la carte options. This means the business of selling travel will grow more complicated. Perhaps this is why these vacation airline companies are merging.

Travel suppliers are going to have an ever tougher time because brands are growing less important. Ryanair has started exploiting this idea and outsources everything it can in terms of product and charges for everything it can – but what of even its brand? Now think about monolithic companies like British Airways, Air France, Lufthansa, etc. Not pretty is it? Can they handle this fragmentation without breaking their core model?

Holiday makers are going to cut and paste what they want into travel experiences that suit them. The only people driven to stick with a brand potentially is the business traveler. But even business travelers have learned of the benefits LCCs have to offer.

Airline consolidation in EC

Even without the Open Skies issue, it seems Euro-airlines are starting to coalesce into bigger groups. Last week it was the in the UK, this week its in Germany. Spain's Iberia may be in play, depending on you read and listen to.

Air Berlin agreed to acquire 100% of LTU for €140m in cash plus the assumption of between €190 and 200m of debt. Through this acquisition, Air Berlin become the fourth largest airline for European traffic, behind Ryanair, Air France/KLM and Lufthansa.

Note the action is among airlines that are not exactly legacy carriers. Its the grow, grow, grow attitude that the likes of Lufthansa has to be watching. There are only so many people – and as noted before, Euro-populations are not growing.

Air travel seems to be fragmenting more and more. Rather than a rosy future for LCCs, there is an increasing case of hybrids developing. This idea was first put forward by Timothy O'Neil-Dunne at T2Impact.com. The Internet continues to play its part; driving consumers to shop around for the pieces they want. Not for them the one-size-fits-all. The future in the EC seems to be evolving towards a la carte options. This means the business of selling travel will grow more complicated. Perhaps this is why these vacation airline companies are merging.

Travel suppliers are going to have an ever tougher time because brands are growing less important. Ryanair has started exploiting this idea and outsources everything it can in terms of product and charges for everything it can – but what of even its brand? Now think about monolithic companies like British Airways, Air France, Lufthansa, etc. Not pretty is it? Can they handle this fragmentation without breaking their core model?

Holiday makers are going to cut and paste what they want into travel experiences that suit them. The only people driven to stick with a brand potentially is the business traveler. But even business travelers have learned of the benefits LCCs have to offer.

That 6% burning issue about fuel

So where do you go to get the real story? As you may have read further below there are interesting numbers on fuel burn. The best place to go is an airline that has data from both planes because they bought both. So here is some data from the only airline that has done so – and look at that! The A380 has a 6% better fuel burn on a per passenger basis. Not our number, this is Lufthansa's data. Link here and here.

Boeing has its data the other way around, their 747-8 has 16% lower burn than the 747-400 and 10% better than the A380. Airbus says a 405 seater 747-8 is 12% below a 747-400 (370 seats) and a 525 seater A380 is 17% lower (presumably Lufthansa configurations).

Since the OEM's have an axe to grind, the Lufthansa data seems objective, wouldn't you think? With the bad news about the A380, Airbus likely found this week's US tour de force was a smart marketing move – its all you see on TV. Now this data point pops us. Maybe this will make a few more people think the A380 is a player, despite its birth pangs.

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