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[Satellite News 07-15-09] EMS Technologies CEO Paul Domorski wants to make the commercial flight cabin as connected as his home office. In doing so, he said the company’s broadband solutions deliver more than just Internet connectivity and making advanced services like "Starbucks in the Sky," a reality for today’s flight experience. "We’re not talking about these capabilities in the future tense, these services are happening now, and their potential is only limited to the imagination," said Domorski.
EMS is a hardware supplier to AirCell, a service provider in the United States and supplier of two-thirds of Aircell’s wireless in-cabin infrastructure. EMS also is a supplier to international in-flight service providers AeroMobile based in the United Kingdom and OnAir based in France. Domorski has been very active in promoting the growth potential of these services, even in a tough economic climate. "Airlines are now using these ancillary services, like in-flight connectivity, to attract new customers and give them more incentive to fly during a time when less people are taking vacations and making business trips. It is the same strategy being used by hotels. You can’t walk into a major hotel these days without being offered advanced in-room connectivity services. In looking at our numbers, it’s clear that there is real investment here," he said.
According to Domorski, the numbers look favorable for EMS. Citing examples, Domorski shows that U.S. commercial carrier Delta Airlines has 160 planes active with the service. American Airlines uses the service on 40 planes and has committed to connecting its fleet of 300 by the end of 2009. AirTran has committed to having their entire fleet ready with the service. In the European market, Ryan Air has committed to connect 170 planes, with 30 currently in service. The service is also showing strong uptake in the Asia Pacific market. "We have about 100 planes active with the service in Asia and we expect that figure to grow significantly, driven by the demand from business travelers who have to fly long distances on those flights. Qantas Airlines in Australia is looking at a whole roll-out of services. They haven’t committed to a specific number, but its going to be a big order," he said.
Commercial airlines, according to Domorski, are embracing connectivity services after learning hard lessons that have financially drained the flight industry. EMS aims to provide airlines with the ability to undergo cost-cutting measures that they may not have thought of before. One example, Domorski said, can be found in the back pocket of an airline seat. "The order catalogs that airlines print up have to cost a lot of money to print up and distribute. With touch screen and video capability, the airlines can easily make those catalogs electronic. In the long run, ideas like that have to save them significant amounts of money," he said.
Domorski said EMS will thrive in an environment where airlines keep the demands of their tech-savvy customers in mind. However, there are some government policies being proposed in the United States that could become a nuisance to broadband in-flight providers. Domorski said EMS has strong opinions on matters of connectivity. "There is legislation in the U.S. congress being proposed, called the Hang Up Bill, where the U.S. Federal Communications Commission (FCC) is reviewing the laws governing cell phone use on flights. U.S. law imposes various restrictions on their use. In Europe, there are practically no restrictions. This bill is looking to put a permanent ban on cell phone use. It doesn’t make sense. Even though some people don’t want to be in the back of a plane on an international flight where 300 people are on a cell phone, these restrictions are bad for airlines. Some governments have tried to place restrictions where they limit the amount of people who can be on a cell phone at once and it ends up hurting the airline in the long run. Let the markets decide on these issues and let the Airlines give their customers what they want. Governments, especially in a time of financial hardships for airlines, should stay away from restricting services that are income drivers," he said.
The market may be listening to Domorski, as commercial airlines are sprinting, not walking, to uptake broadband connectivity services. "Its absolutely fascinating," said Domorski. "I could not predict, even six months ago, that these services would be embraced at this speed or in this quantity. In that short amount of time, this market has exploded."
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