September 1st 2018

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Research recently published by the Britain’s London School of Economics and Political Science (LSE) has forecast the connected aircraft would reduce airline operating costs by US$15 billion a year by 2035 and has the potential to eliminate 21.3 million tonnes of CO₂ emissions from flights in the same period. Read More »

Contemporaneous data from the International Air Transport Association (IATA) combined with interviews with airlines, regulators and suppliers was published in Sky High Economics: Evaluating the Economic Benefits of Connected Airline Operations which said the major benefits of the connected aircraft are fuel savings, reduced flight delays, air traffic enhancements, greater MRO efficiency and improvements in safety.

The LSE study said the new efficiencies could cut annual airline operating costs of US$764 billion by 1% today and by US$15 billion in 2035. Optimisng flight routes in real time based on more accurate weather information for pilots could save 1% in fuel per flight, the authors of the study, produced in association with Inmarsat, said. Based on current oil prices, annual savings for airlines could be up to 3.39 billion litres of fuel, 8.3 million tonnes of CO₂ and US$1.3 billion.

Long-term, the study projected enhanced communication to and from the cockpit could produce further annual reductions in fuel of 8.5 billion litres, or 2.5% of total global requirements, which translated into 21.3 million few tonnes in of CO₂ emissions.

Flight delays worldwide cost the industry an estimated $123 billion a year, the report said, with weather responsible for 70% of them. Connected aircraft can avoid more many episodes of adverse weather with digital technology that could save airlines up to $1.3 billion a year. Crew re-scheduling is responsible for 3% of flight delays, a figure that could be reduced by 66% with enhanced connectivity, the LSE study said.

IP-enabled secure real time data exchange between air traffic controllers and aircraft using satellite-based navigation, automated aircraft position reporting and introducing digital datalink communications between pilots and air traffic controllers could revolutionise air traffic management and save airlines an estimated $3 billion a year, report lead author, LSE media and communications, Dr. Alexander Grous, wrote.

Inmarsat Aviation senior vice president market and business development, Frederik van Essen said: “With finite airspace available to accommodate increasing passenger numbers, airlines need to act now in considering the technology and infrastructure they need to future proof their operations.”

The report is the second installment in the Sky High Economics series. The opening chapter explored the revenue and economics of inflight passenger connectivity. The final chapter will examine the impact of passenger connectivity on loyalty and behaviour.