Insight | A tipping point in business aviation
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During his presentation at Corporate Jet Investor (CJI)'s global conference last year, Inmarsat's Head of Business Aviation Kai Tang explained how the habits of our business aviation customers have evolved since the onset of the global pandemic, especially when it comes to flight traffic. Looking back to data from before Covid-19, demand for business aviation connectivity was primarily situated across North America and Europe. Three years on, and while those regions are still prevalent, there’s a lot of additional traffic, especially across Asia Pacific and other emerging routes. "There’s a lot of density through the Hawaiian Islands down to South America and Africa,” Tang noted at the event.
While business jet traffic might be harder to predict, it's clear that regardless where they are flying, passengers still demand a superior experience at every stage of their journey from gate to gate. It must be perfectly predictable, without any negative surprises. Inflight connectivity (IFC) is no exception. On the contrary, Inmarsat and CJI's 2022 survey of business aviation professionals has highlighted that expectations around consistent, reliable connectivity has only amplified in recent times and that will continue in the future too.
When asked about which aspect of the business aviation inflight experience would become more important over the next 12 months, the response from directors of flight operations, general managers and other respondents were unequivocal. Having access to the same ultra-reliable and consistent connectivity that is available on the ground will become even more essential.
Significantly, this now scores higher than the ability to make last-minute schedule changes, which has long been a primary draw of business aviation. And while the margin might be slim – 45.9% of respondents prizing connectivity access over the 45.2% who favoured flight flexibility - such an endorsement of IFC’s significance is a line-in-the-sand moment.
The factors driving this change are unsurprising. When survey respondents were asked what value enhanced connectivity brought to an aircraft, 45.2% believed it would improve the inflight experience for passengers. And of course, their experience defines whether or not they continue to use business aviation. “These individuals not only have exacting standards, they are flying further, they’re using more data and they expect to remain connected throughout a flight,” Tang points out. “In a scenario where time is one of their most critical assets, staying connected – for work or leisure – is paramount.”
The survey also delivers another startling statistic. Readers were asked if they believed business aviation has evolved from a luxury asset into a business asset in its own right. An incredible 86.6% agreed (with 45.4% very strongly so). “Owning or leasing a private jet is no longer seen as a mere nice-to-have,” notes Tang. “Rather it is an asset that unlocks productivity, saves time, and creates bespoke travel options.” This would help to explain why the adoption of business aviation has accelerated since the pandemic amongst High-Net-Worth Individuals (HNWs) and corporations.
Inflight connectivity is once again a key driver here. Taking time that was ordinarily ‘in the dark’, without connection to direct their business affairs, principals can now run meetings, send their teams the latest work, and make important decisions in real-time, all while airbourne.
The value bestowed by enhanced connectivity also flows through to business aviation’s recent runaway success – chartered flights. One fifth of those surveyed (20.5%) say robust and consistent connectivity makes a positive revenue contribution for charter flights. And the post-pandemic growth of chartered flights shows no sign of abating either. Indeed, respondents were asked where they thought the biggest demand would be in business aviation over the next year and the most popular answer by far (55.8%) was chartered flights.
While chartered flights offer a starting point for newcomers, there was another well-defined trend that the survey surfaced. Almost half of respondents (49.6%) think new entrants will eventually move past chartered flights in favour of pre-owned aircraft.
Indeed, the pre-owned aircraft market is more active than ever. It is here that Tang raises something vital for operators trying to reduce the potential downside on their investment. “Inflight connection is crucial now and soon enough it could simply be the new normal,” he says. “For operators who want to protect their investment, reliable connectivity will be essential to maintaining resale value.”
This is something echoed by the survey respondents, with 19.8% stating that IFC future-proofs aircraft investments and 14.3% believing it increases their asset's re-sale value.
Upgrading inflight connectivity can be considered a double penalty due to the required cost and grounding of an aircraft. That’s a purchase and time where a crucial asset isn’t bringing in value. So, when directors of flight operations were asked what they thought would significantly enhance the value and capability of a pre-owned aircraft, the response was quite clear. More than half (54.4%) stated that a simple software upgrade (rather than hardware retrofit) would be hugely desirable.
This is where innovation holds the answer. Simplifying the upgrade process was a critical consideration in creating Inmarsat’s ground-breaking new SwiftJet inflight connectivity service. One of the first new services to be introduced on our reinvigorated ELERA L-band network, SwiftJet will be up to six times faster than our existing SwiftBroadband (SBB) business aviation connectivity solution over L-band. And existing SBB customers will benefit from a natural upgrade path without the need to replace any externally-mounted aircraft equipment.
“Inmarsat prides itself on delivering services that meet the unique and fast-evolving requirements of our customers. As the market leader in business aviation connectivity, we developed SwiftJet in response to customer and partner feedback for a faster, more advanced L-band offering. They essentially asked us to amplify L-band capabilities without losing its trademark characteristics of resilience, reliability and availability," says Tang. “I am proud to say that SwiftJet delivers all of this and more, unlocking exciting new capabilities in the aircraft cabin and allowing users to connect more devices, and enjoy faster connectivity speeds, whenever and wherever they fly.”
It is incredibly clear now. Connectivity is not a nice-to-have for business aviation. It is essential. The results of this latest CJI survey simply amplifies this. But now, innovations in tested technologies are removing the usual barriers when trying to meet the ever-increasing expectations of passengers. They clearly expect the same connectivity in the air that they take for granted on the ground. And SwiftJet makes it easier to provide that. Moreover, IFC meets the demands of today and helps protect the investment made in an aircraft into the future. Think of it as a win now and a win later.
