CJI SURVEY RESULTS
‘Watershed moment’ for business aviation connectivity
CJI’s latest research on in-flight connectivity confirms a pivotal moment for the service, according to our research partner Inmarsat. We dissect the key trends and look ahead to the future of connectivity on private jets. Words: Conor Feasey
CONNECTIVITY SURVEY
Essential, not just nice to have: 82% of survey respondents told us in-flight connectivity has evolved from a luxury option for some passengers to a key requirement for the majority.
CJI SURVEY RESULTS
‘Watershed moment’ for business aviation connectivity
CJI’s latest research on in-flight connectivity confirms a pivotal moment for the service, according to our research partner Inmarsat. We dissect the key trends and look ahead to the future of connectivity on private jets. Words: Conor Feasey
CONNECTIVITY SURVEY
Essential, not just nice to have: 82% of survey respondents told us in-flight connectivity has evolved from a luxury option for some passengers to a key requirement for the majority.
IN-FLIGHT CONNECTIVITY aboard private jets has reached “a watershed moment”, according to the latest research conducted by Corporate Jet Investor in partnership with Inmarsat.
Our research surveyed nearly 100 business jet owners, charter operators, corporates, fractionals, brokers and advisers worldwide to gauge opinion on the topic in April 2023. The results confirmed that 82% of respondents believe in-flight connectivity has evolved from a luxury option for some passengers to a key requirement for the majority of clients. No connectivity, no go, was the clear message.
“This is a watershed moment for business aviation connectivity,” Kai Tang, head of Business Aviation, Inmarsat told CJI. “These results are significant because they demonstrate once again that in-flight connectivity is no longer a luxury for business aviation passengers. It has become an expectation.” The consequences for private jet businesses of failing to deliver principals’ requirements is clear, he added.
The global pandemic had heightened customer’s expectations of what onboard connectivity should deliver. “The results show that the market for business aviation in-flight connectivity has started to mature,” said Tang. “Respondents had a deeper understanding about passenger expectations and how to meet them.”
The survey results reveal not just the value connectivity delivers to principals and clients but also its growing contribution to the residual value of the aircraft. “While 70% of respondents said improved passenger experience was the main benefit of equipping their aircraft with a connectivity solution, 12% said having in-flight connectivity enhances the re-sale value of their asset,” said Tang.
A further 9% said it future-proofs their aircraft investment and another 9% said it contributes to revenue for their charter flight packages. “Interestingly, later in the survey the value of in-flight connectivity was perceived to be higher for enhancing re-sale value in comparison to delivering a stand-out passenger experience,” said Tang.
With the importance of connectivity now firmly established as a must-have in the business aviation market, the focus is shifting to the quality of service, noted Inmarsat. Invited to prioritise aspects of in-flight connectivity, respondents selected the reliability of service – wherever they fly in the world – above a superfast connection. “As the survey results have highlighted, principals and clients have exacting standards and their expectations around superior connectivity have continued to amplify over the past year,” he said.
Over the next year, Inmarsat expects business jet passenger expectations will continue to evolve, with the transformational changes currently underway with in-flight connectivity remaining pivotal to staying one step ahead of clients’ expectations. They will begin to ask what is next for connectivity aboard aircraft. “I think a theme in next year’s survey could be longer term innovation and how that will lead to even greater improvements in passenger experience and return on investment,” said Tang.
For Inmarsat, the true test of a connectivity solution’s success is for passengers to forget that it is in place. “We have always said that when technology works perfectly, you forget it’s even there,” said Tang. “That’s particularly true when it comes to in-flight connectivity in the business aviation market. And that’s exactly what Inmarsat strives to deliver with our gold-standard solutions.”
Audience Votes
Audience Votes
Kai Tang, head of Business Aviation, Inmarsat.
CJI Connectivity survey reveals key trends in eight questions...
Eight questions capture the key influence of connectivity aboard private jets. We ask Kai Tang, Inmarsat to dissect the key trends from this year’s survey and to predict next year’s results.
Corporate Jet Investor (CJI): What are the key trends to emerge from this survey?
Kai Tang (KT): This year’s results have highlighted once again that inflight connectivity is no longer a nice-to-have in business aviation, it’s a must-have. That’s reflected in the fact that the vast majority of survey respondents (82%) said inflight connectivity is now a passenger expectation. Three quarters (74%) said that passenger satisfaction increased when inflight connectivity was introduced on their business jets.
However, the survey also reinforced that simply having connectivity onboard is no longer enough. Passenger expectations have significantly evolved in recent years, especially during the pandemic as the importance of staying connected – whether for business or leisure – has heightened.
CJI: Did any of the results surprise you? If so, why?
KT: The dynamics of the business aviation inflight connectivity market are constantly changing. Inmarsat has been a key player for over 30 years now and as you can imagine, we’ve seen many changes over that time, with technology advancing and competitors coming and going. The market has entered another period of transformation now, with a flux of new companies talking up their capabilities, which are almost entirely focused on the theoretical speeds they hope to offer. Much of that is unproven and even then, speed is only one factor when it comes to delivering gold standard inflight connectivity.
We know the market, we know our customers, and speed alone will not fully meet their demands. This has been reinforced by the survey results. For example, when asked which factors would be prioritised when buying a connectivity solution, consistent performance and coverage across 100% of routes were both deemed more important than high speeds. Similarly, when asked which aspects of inflight connectivity are most important, respondents said the solution working consistently wherever they fly is more important than a superfast connection. I wouldn’t say that surprised me, but I think it might surprise others.
CJI: What does this survey tell us about business jet inflight connectivity?
KT: The results show that the market for business aviation inflight connectivity has started to mature. Respondents had a deeper understanding about passenger expectations and how to meet them. It was great that people from across the business aviation industry took part in the survey, as it really gives us a complete picture and strengthens the value of the findings. The split between responses from owners, charter operators, corporates, fractionals, brokers and advisers was almost even – and crucially, these respondents operate a broad range of aircraft, from small jets and mid-sizes to super mid-size and large jets.
Improvements to Inmarsat’s satellite networks, terminals, and supporting infrastructure mean its solutions are becoming significantly faster too, claims the company. But speed is only one requirement in providing the connectivity solutions discerning clients demand.
Clients prize not just speed of connectivity but reliablility too.
CJI: Most respondent’s cite customer experience as the main factor influencing which inflight connectivity package they buy. What else adds value to the service?
KT: As the survey results have shown, its widely known that consistent, reliable, high-speed inflight connectivity has the ability to significantly enhance the onboard experience for passengers. However, the results also highlighted another interesting trend, and that’s the return on investment when equipping an aircraft with a connectivity solution. While 70% of respondents said improved passenger experience was the main benefit of equipping their aircraft with a connectivity solution, 12% said having inflight connectivity enhances the re-sale value of their asset, 9% said it future-proofs their aircraft investment and a further 9% said it contributes to revenue for their charter flight packages. It was interesting to note that later in the survey, the value of inflight connectivity was perceived to be higher for enhancing re-sale value in comparison to delivering a stand-out passenger experience.
CJI: Connectivity companies have been trying to convince passengers they need inflight connectivity for the past decade. With 82% of respondents saying that connectivity is a passenger expectation, what are you trying to convince them of now?
KT: It’s true that in the business aviation market, the vast majority no longer need convincing about the importance of inflight connectivity. It’s become a must-have. However, with a demanding customer base that includes high-net-worth individuals and corporations, the focus has shifted from simply having it onboard to meeting expectations around quality of service. As the survey results have highlighted, these individuals have exacting standards and their expectations around superior connectivity have continued to amplify over the past year. They need the certainty that reliable, consistent, high-speed connectivity will be available, wherever and whenever they are flying. That’s exactly what Inmarsat strives to deliver with our inflight connectivity solutions. We’re enabling passengers to make the most of their time onboard, whether that’s for business, entertainment, or simply staying in touch with family, friends and colleagues.
CJI: What topics do you think will dominate next year’s connectivity survey?
KT: Business aviation passenger expectations will continue to evolve in the next year and the transformational changes that are currently underway with inflight connectivity are pivotal to staying one step ahead. Inmarsat is a prime example, as we have the launch of our new SwiftJet service and Jet ConneX (JX) Evolution programme. Customers will then increasingly look even further ahead and start to question what’s next. I think a theme in next year’s survey could be longer term innovation and how that will lead to even greater improvements in passenger experience and return on investment.
At Inmarsat, we are not satisfied with one-dimensional solutions. We are not even satisfied with two-dimensional solutions. We’re on the cutting-edge amongst our peers of re-imagining mobile connectivity. Our multi-dimensional ORCHESTRA network will form an integrated, high-performance global solution, unmatched by any existing or planned competitor offering. We will build on our existing L-band and Ka-band networks, both of which are already global and fully redundant, and each of which provides a particular kind of capability that the other network does not. We are adding two new layers, a terrestrial 5G layer to complement the space layer, to get additional capacity in concentrated zones. By doing that, we unload the space segment, ensuring everyone gets better service because the space segment is being used much more efficiently. On top of that, we are planning to add a targeted LEO layer, enough to allow us to extend this LEO layer to enable hotspot service capability.
ORCHESTRA takes the best elements of each available technology and intelligently orchestrates them into a reliable service that will deliver exactly what customers need – on every aircraft, on every route, at any time. Capacity will be boosted in high-density areas such as airports, congested network ‘hot spots’ will be eliminated, and the connectivity needs of business aviation customers will continue to be met well into the future, with capacity scaled directly to match their requirements.
CJI: Any other points to add?
KT: We have always said that when technology works perfectly, you forget its even there. That’s particularly true when it comes to inflight connectivity in the business aviation market. And that’s exactly what Inmarsat strives to deliver with our gold-standard solutions.
There’s currently a lot of noise in the market about speed – we’ve experienced that in the past too, when a flock of new entrants are trying to establish their place in the market. It’s nothing new. But remember that’s only one factor. For Inmarsat, the advances in our satellite networks, terminals, and supporting infrastructure mean our solutions are becoming significantly faster too, but speed is only one requirement in providing the connectivity experience passengers expect and need.
“The market for business aviation in-flight connectivity has started to mature.”
Moreover, our approach is unique because we are building up from existing, proven solutions. This cannot be replicated by others and presents a welcome alternative to the over-promising and under-delivering of some connectivity providers. As the survey results have shown, aside from speed, the market is also looking for consistency, reliability, resilience, seamless global availability, and world-class customer service, which I’m proud to say are all proven characteristics of Inmarsat solutions.
Connectivity survey results – Inmarsat’s summary
THE 2023 EDITION of CJI and Inmarsat’s annual connectivity survey for business aviation professionals has further confirmed the growing importance of in-flight connectivity to jet operators and principals, writes Inmarsat. Conducted in April 2023, the global survey found that a staggering 82% of respondents believe in-flight connectivity has evolved from a luxury add-on for a minority to a passenger expectation for the majority.
The new results come from almost one hundred interviews conducted with business jet owners, charter operators, corporates, fractionals, brokers and advisers from around the world. Together, they are involved with fleets that range from small and mid-size to super mid-size and large jets. And their responses point to a maturing market for in-flight connectivity, with a deeper understanding of passenger expectations and the importance of consistently meeting those expectations on each-and-every flight.
For respondents who have introduced in-flight connectivity on their fleet, the benefits are clear. The vast majority (74%) noted an increase in passenger satisfaction levels, which should come as no surprise. In-flight Wi-Fi means principals are able to stay as productive, entertained, and informed in the air as they are on the ground.
According to Kai Tang, Inmarsat’s Head of Business Aviation, this is a watershed moment for business aviation connectivity. “These results are significant because they demonstrate once again that in-flight connectivity is no longer a luxury for business aviation passengers. It has become an expectation,” he said. “In an industry where keeping principals happy is a central concern, the pitfalls for operators that don’t offer in-flight connectivity are very clear”.
It’s also clear that choosing the right in-flight connectivity provider for your aircraft makes a big difference to the quality of your principal’s experience. Many of these providers, especially the newer entrants, are currently making a lot of noise in the market about the potential speeds they hope to deliver. However, rather than entertain a ‘claim game’, the survey respondents offered a reminder that their definition of world-class connectivity is not defined by speed. When picking a service, they prioritise consistent performance and 100% route coverage over high speeds.
And great in-flight connectivity is not only good for the passengers on the aeroplane. The respondents were also clear on the benefits it brings for their own businesses. Nearly 40% told CJI and Inmarsat that providing in-flight connectivity had added value to their business and over a third felt it had given them a competitive advantage. In-flight connectivity also has a positive impact on the value of the aircraft itself. Almost half of our audience felt it enhances the resale value of their assets and nearly a third believe in-flight connectivity future-proofs the value of their fleet, keeping it a valuable working asset for longer.
When asked what in-flight connectivity packages they offered, the most popular answer was a free/included package, followed by pay as you go and flat rate (both of which received a similar number of votes). The least common answers were bespoke offerings and regional plans.
But the single biggest takeaway from this new research is that demand for in-flight connectivity is only going to grow. Gone are the days when it was a luxury; it’s now an essential part of any business aviation offer. And those operators who still don’t provide it might soon find they and their aircraft are left sitting on the tarmac.
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CJI Connect
Conor McDougall Garmin [email protected]
Greg Principato National Aeronautic Association, President and CEO [email protected]
