21 Jun 2018

The aviation industry could save $15 billion a year through connected aircraft

The airline industry could save billions a year as well as tonnes of CO2 emissions by 2035 through connected aircraft according to a study.

The London School of Economics research conducted for connectivity provider Inmarsat, projects that a $15 billion a year in savings and 21.3 million tonnes of CO2 emissions.

This report follows a study last year by LSE for Inmarsat which found that the availability of inflight wifi could boost airline revenue by $30 billion.

The savings and operational benefits would come as a result of efficiencies facilitated by internet connectivity onboard including optimized flight paths offering better air traffic management and reducing fuel burn, live weather updates avoiding disruption, as well as live maintenance updates and safety improvements.

The study suggests that connectivity could also reduce flight delays, cancellations and diversions.

• The forecast cost of the 13% of medical emergencies that result in diversions is $552 million globally. The study suggests that telemedicine, supported by connectivity, could reduce diversions by as much as 75% with the cumulative decrease between 2018 and 2035 saving $10 billion in costs.

• Weather is responsible for 70% of all flight delays and is a contributing factor in 23% of aviation accidents. With improved navigation and by avoiding bad weather with real-time updates airlines could save $1.3 billion.

Connected aircraft would also help airlines cope with a projected increase in capacity demand with passenger numbers expected to nearly double by 2036, according to IATA.

Dr Alexander Grous (B. Ec, MBA, M.Com, MA, PhD.), Department of Media and Communications, LSE and author of Sky High Economics says:

“The forecast doubling of aircraft in the skies by 2035 will create both challenges and opportunities for the global aviation industry. IP-enabled aircraft are an essential step in facilitating growing demand for air travel, while meeting vital safety requirements. The study’s findings highlight not only the powerful commercial efficiencies for airline operations, but crucially, the resulting advantages for safety and environmental impact.”

Frederik van Essen, Senior Vice President, Market and Business Development, Inmarsat Aviation, says:

“This report demonstrates that the connected aircraft is a shrewd commercial decision; unrivaled access to real-time data is reducing airlines’ bottom-line operating costs while reducing emissions and improving safety. Not only that, enhanced connectivity is becoming an operational necessity as our skies become busier. With finite airspace available to accommodate increasing passenger numbers, airlines need to act now and consider the technology and infrastructure they need to future-proof their operations.”