Inmarsat enters in-flight broadband collaboration with Panasonic Avionics
Inmarsat announced on Thursday that itself and Panasonic Avionics Corporation have agreed a strategic collaboration, for an initial 10-year period, that would enable them to combine their “highly complementary” services to offer broadband in-flight connectivity (IFC),paired with high-value solutions and services to customers in the commercial aviation industry worldwide.
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The FTSE 250 company said the collaboration would enable airlines, aircraft manufacturers and passengers to benefit from the combined expertise of the two companies.
It said that under the terms of the agreement, Inmarsat would become Panasonic's exclusive provider of Ka-band IFC for commercial aviation.
Panasonic would now be able to offer Inmarsat's high-speed broadband connectivity service, ‘GX Aviation’ - powered by Global Xpress, which it said was the world's first global Ka-band satellite network, owned and managed by a single operator.
Inmarsat said Panasonic would still continue to invest in its own network and, with GX Aviation as a primary offering for new business, would be “perfectly positioned” to serve both its current and future customers.
In addition, Inmarsat would be able to offer Panasonic's market-leading portfolio of services and NEXT solutions to Inmarsat's commercial aviation customers.
That would include customer support services available from Panasonic's Customer Performance Center and Technical Services teams.
The collaboration, which was already being deployed with a mutual customer, presented a “unique opportunity” to leverage Inmarsat's proven track record of high-quality and innovative global mobile connectivity, and Panasonic's market-leading in-flight entertainment, digital services and connectivity solutions, Inmarsat said.
Looking ahead, the two companies would 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,” the Inmarsat board said in its statement.
That would give greater quality, consistency of experience and more choice to airlines and their passengers in the IFC market, which by some estimates could exceed $100bn by 2035.
“Our highly complementary collaboration with Panasonic combines the unique expertise and proven capabilities of both companies to create a market-leading in-flight connectivity offer for aircraft manufacturers, airlines and their passengers,” said Inmarsat chief executive officer Rupert Pearce.
“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.”
Pearce said the announcement was “clear evidence” of Inmarsat delivering on its strategy, and strengthened its conviction that, building upon the success of the global GX network, aviation would be a significant individual growth driver of the company’s overall business.
“It also demonstrates Inmarsat's commitment to becoming the reference IFC network for airlines around the world.
“We look forward to working closely with Panasonic as we develop the relationship and accelerate our respective innovation roadmaps to ensure we continue to provide airlines and passengers with the world's leading IFC experience.”
Hideo Nakano, chief executive officer at Panasonic Avionics, said that for over 10 years, Panasonic had 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 our NEXT Online portfolio, we're recognizing the need for IFC consistency across multiple fleets, and enabling digital solutions and services with unified customer support. It's really a win-win for customers.
“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.”