Television Broadcasts Come on Board Executive Jets
Television programming is literally taking flight these days.
Technology has enabled some travelers to watch television on aircraft equipped with special antennas and systems. While many executive business jets offer passengers this luxury, it has not quite taken off in the commercial sector.
Still, Vista-based Datron Systems is keeping a close watch on the industry with hopes that it could capture a significant portion of the airborne television antenna market once passengers and airlines buy into the idea, according to William Stephan, chief financial officer for Datron.
The company manufactures airborne satellite television antennas that have been certified by the Federal Aviation Administration for use on all major business jets and on Boeing 737s, 767s and 777s.
Late last year, the company granted Tustin-based Airshow Inc. the exclusive rights to manufacture one of Datron’s antennas for use on executive business jets for more than $1 million plus future royalties, he said.
Tustin-based Airshow provides in-flight entertainment and communications equipment and systems to corporate and commercial markets.
– High-Quality TV
Broadcasts On Planes
Datron’s antenna allows for high-quality digital picture and sound to be broadcast on multiple television screens around an airplane cabin, Stephan said, adding that the technology also allows for E-mail and Internet when those services become available from satellite service providers.
The demand for in-flight entertainment in the corporate aviation market has exceeded Airshow’s expectations, according to Martin Hamilton, company marketing manager.
Airshow has already sold 90 systems and 41 of those have been installed, he said.
Although Datron tested its first in-flight satellite TV system with a commercial airline in 1996, the major airlines have not yet reached a point where they have committed to offer television programming, Stephan said.
Still, the demonstration proved that the technology worked and Datron has since improved its antennas, he said.
The company is also keeping a close watch on competitors who are offering similar products through smaller commercial airlines, he said.
– Business Travelers
Embraced Technology
While Datron has had it sights set on the commercial market, Stephan said that business travelers were the first to embrace the technology.
As a result, the antennas were adapted for business jets that are either owned by private parties or corporations, he said.
The demand for in-flight television, E-mail and Internet access has been spurred by CEOs and principals who wanted to be in touch with everything happening on the ground, Hamilton said.
Adding that it is easier to develop products in the corporate market, Hamilton said there is more flexibility and larger budgets to work with.
Due to recent developments in the market, Datron believes that television may soon be available on commercial airline flights in as little as two years, Stephan said. Currently, in-flight television is available on a demonstration basis on two small airlines.
With the technology and patents in place, Datron believes it is well positioned to capture commercial business for broadband services that will include satellite television and two-way Internet programming, he said.
– Market Estimated At
7,000 Commercial Aircraft
Stephan believes that the potential market for its antennas is comprised of approximately 7,000 commercial aircraft worldwide.
Although the antennas manufactured by Datron have a sales price between $100,000 and $150,000 each, Stephan said that airlines have other cost considerations. In order to implement an airborne satellite television system, airlines would also have to wire aircraft and install other equipment.
Television rights is another issue facing the commercial airlines, since compensation for television programming is required for public viewing, Hamilton said.
Due to the cost of installing and running an entertainment or communication system, Hamilton said that airlines might adopt a pay-per-view business model.
Still, frequent fliers and business travelers have a significant amount of power and they are requesting television, E-mail and Internet access, he said.
While it may be some time before upgrades are seen across the board, Hamilton said passengers might start seeing the technology phased in with new planes being equipped first.
The technology that’s implemented should also reflect the travelers, he added. For instance, the Asian market is more focused on entertainment, while the European market is interested in information and the United States wants business services.
