Vendor Member Profile. A Company with deep roots and promise for the future in IFE

Transcription

1 Vendor Member Profile A Company with deep roots and promise for the future in IFE Thales is a leading international electronics and systems group serving defense, aerospace, and security markets worldwide. Thales employs 60,000 people in 50 countries and generated revenues of $13 billion in THE EARLY YEARS Four companies become one. The history of Thales goes back over a century ago and its development has been based on many mergers, acquisitions, and joint ventures. Its origins began in the United States when Elihu Thomson, born in England, moved in 1858 to Pennsylvania at age 5 and later became an engineer. Early in his career, Thomson teamed with his teacher, Edwin Houston, and formed a company called the Thomson- Houston Corporation that made electrical traction systems for street car transportation. It was then that the two entrepreneurs found themselves working with big league electrical equipment manufacturers like The Thomas Edison Company and General Electric. Later, the three companies merged. In 1890, Thomson wanted to expand internationally and went to France at a time when electricity was a major innovation. He formed an agreement with French industrialists and promoted electrical processes that were developed by American companies. In 1893, Thomson merged his company into a bigger business called Compagnie Française Thomson-Houston (CFTH), which then had controlling interest with companies that produced Elihu Thomson power generation, telephones, radio communications, televisions, lamps, and other household appliances. While CFTH was developing, two other innovators were building businesses. Benjamin Hotchkiss was a well-known weapons supplier who started a small automotive business in France and by 1902 began to produce cars. The other innovator, Edgard Brandt, was mobilized in WWI and discovered while in the trenches that the French forces were poorly equipped. In 1915, Brandt developed new, more powerful mortar weapons. Hotchkiss and Brandt merged operations years later so that they would be large enough to compete on an international level. In 1918, there was another company called Compagnie Générale de Télégraphie San Fil (CSF), which promoted new means of communications. Between 1966 and 1968 all businesses above recognized that they had common threads that addressed two markets: household appliances and professional electronics. They merged and became a French-based company called Thomson- CSF. Throughout the 1980s, Thomson-CSF pursued these markets on a national level and continued to diversify its product lines. 58 Third Quarter 2006 AVION

2 Air INTERNATIONAL EXPANSION AND PRIVATIZATION The focus is on both civil and military markets. In 1989, from the merger of three eerospace sub-divisions, SFEMA, CROUZET/EAS, and the Avionics Division of Thomson-CSF came another company called Sextant Avionique. This was a joint venture between Aerospatiale and Thomson-CSF, which in 1999 became 100% Thomson-CSF. This business produced a comprehensive line of cockpit instrumentation, communication, and navigation technologies for airlines, cargo carriers, and helicopters. At the same time, the company pursued a very active M&A policy into the defense electronics business by teaming with other European companies that produced products such as fire control systems and radars for air, land, and sea applications. In 1996, privatization was a government focus in France and by 1998 a new foundation for Thomson-CFS emerged. Denis Ranque was appointed Chairman and participated in a new corporate agreement that brought corporate shareholders together, including Aerospatiale, Alcatel, Dassault Industries, and Thomson-CFS. From there, the company adopted a new multidomestic strategy that embraced South Africa, Australia, S. Korea, Canada, Brazil, and the United Denis Ranque Chairman of Thales Sea Land States. In June 2000, Thomson- CSF acquired the British company Racal Corporation for over $2 billion. This single business arrangement doubled the company s workforce and revenues in the UK and further expanded product lines covering cellular networks, defense, avionics, and surveillance technologies. In December 2000, Thomson-CSF decided that it needed to rebrand itself to reflect the philosophy and capabilities of the organization and to separate from Thomson companies that focused on household products. The name THALES (pronounced Tallas ) was selected based on the Greek mathematician and philosopher in 585 BC who was credited with five math theorems and first to give a rational rather than mythological explanation of the universe. Today, Thales(the company) is known as the Thales Group an innovative, worldwide electronics company that offers technological solutions for air, sea, and land applications. THALES INFLIGHT ENTERTAINMENT It s a new business with long-term strategic direction. Today, the Thales IFE business is part of the company s Aerospace Division which is led by Francois Quentin, Senior Vice President. The Division is a growing $3.1 billion operation that invests 17% of its revenues into research and development and employs 12,900 people worldwide. It was Francois Quentin s vision and commitment that enabled the continued investment in IFE during the turbulent times from It was challenging, but the result of his decisions are what made the Thales IFE business what it is today a business that has grown ten-fold. In 1999, Thales expanded its presence in commercial aerospace and into the aircraft cabin through the acquisition of the IFE group from BE Aerospace. The acquisition fulfilled Thales nose to tail market strategy for commercial aircraft, supplying technology for both the cockpit and cabin. It was a time when audio and video on demand systems became the desired solution for widebody aircraft, overhead video and distributed audio was the standard for singleaisle aircraft, and satellite TV was entering into the US region. The business was called the Inflight Systems Group of Thales. Francois Quentin Senior Vice President Aerospace Division of Thales Through acquisition, the Inflight Systems Group had a long and distinguished history in IFE dating back to the 1960s when, as part of EECO, it supplied to the industry some of the first PCUs and audio transducers. The small but innovative group expanded its product line with audio systems in the 70s, and by the early 90s began to supply video systems. First came the dseries distributed audio and video system, and then the mseries, the world s first multi-media interactive on demand system for aircraft. In addition, the company produced cameras for aircraft cabins. dseries continued on page 60 AVION Third Quarter

3 THALES continued from page 59 Cameras Passenger control devices In the mid-90s, the company formed a joint venture called LiveTV with Harris Corporation and became the first to deploy satellite TV systems on a large scale. The LiveTV business was eventually sold as the business arrangement no longer fit into Thales long-term strategy. In 1999, the company decided that it was time to develop a new IFE system starting from a clean sheet of paper. With tremendous growth and acceptance of the Internet and the robust high performance of Ethernet technology, a tiger team (code name Panther) was launched on a new IFE system program that was to leverage mainstream technologies. The team collectively had many years of IFE experience. Familiar names include Ken Brady, Dan Reed, and Brad Foreman. LiveTV TM Ken Brady Principal Engineer The goal was to provide a single system that (1) offered entertainment, in-seat power and connectivity functionality (2) could install retro-fit and line-fit across all aircraft models, and (3) would be offerable by major aircraft manufactures. In addition, the system needed to offer a whole new paradigm in IFE systems with these features: A 20% reduction in system weight and power compared to legacy IFE systems Dan Reed Product Strategy Low volume head-end and seat components Scalable options so that an airline can install basic to advanced IFE across a single aircraft Internet-ready capability THE INDUSTRY S NEXT GENERATION IFE SYSTEM IS BORN TopSeries it s not just another IFE system. After three years of development, Thales introduced the TopSeries system, a unique system design that integrates broadband communications, in-seat power, and Brad Foreman Program Management (now VP/GM for IFE) entertainment into one platform. The baseline TopSeries system offering is a modular design that allows airlines to select the right IFE combination for their business. System levels of service are as follows: i-1000 High speed broadband communications network for laptop connectivity i-2000 Overhead video and distributed audio i-3000 In-seat broadcast video and distributed audio i-4000 All digital video and audio on demand with a 100BaseT Ethernet network Airbus single aisle 60 Third Quarter 2006 AVION Boeing twin aisle A380 aircraft continued on page 62

4 THALES continued from page 60 Air Canada regional jet with full cabin IFE Thales A380 lab Royal Jordanian video and audio on demand entertainment on an Airbus single-aisle aircraft In June 2002, Thales announced its offerability status for all existing Airbus single- and twin-aisle aircraft platforms. And, in February 2004, a similar announcement was made for all existing Boeing aircraft. ADVANCED AIRCRAFT PLATFORMS Beyond existing aircraft types, Thales is committed to upcoming platforms, including the A380 and B787. For the A380, Airbus required a gigabit Ethernet network for greater bandwidth. This resulted in a slight change to the TopSeries design, but most components remained the same to ensure system commonality across an airline s fleet. The system is called the i-5000 system. In 2003, Thales created its largest IFE test lab with a 555 seat configuration. In March 2004, after required test demonstrations with Airbus, Thales announced that it received A380 offerability and today the system is flying on the OEM s flight test aircraft, MSN002. The first airlines that will fly with the TopSeries system on their 380 aircraft are Air France, Malaysia Airlines, and Etihad Airways. For the B787, Boeing required a wireless solution that connects the head-end digital servers and passenger seats. This requirement called for another slight change to the baseline TopSeries system leading to the Thales wireless IFE system, the i In September 2005, Thales announced that Boeing selected the Thales system for the aircraft, and today test labs that replicate the aircraft are in development. Though most system designs have been carefully planned, one unplanned system came about as the result of a specific customer requirement. In 2004, Air Canada and Thales evaluated the possibilities of installing an all-digital audio and video on demand system on the airline s regional jets. The importance of this was to follow through on the airline s objective: To ensure that all passengers, regardless of what aircraft they were on, receive the same inflight entertainment experience. The challenge was to reduce the size of the components at the seat due to extreme space restriction. After many white board illustrations, head scratches, and technical discussions, the design team came up with a solution that eliminated the seatbox. This revolutionary IFE system, called the i-4500, is now flying on over 32 Air Canada regional jet aircraft at an exceptional system availability rate. On-Site Services brings spare passenger control units in for normal wear and tear replacements. 62 Third Quarter 2006 AVION Program Management gives a thumbs up after installation at the Airbus facility. Digital Media Services manages content in preparation for customer deliveries. continued on page 64

5 THALES continued from page 64 Shop maintenance Training INDUSTRY FIRST ACHIEVEMENTS They are symbols of the company s innovative spirit. In 2005, the Frost and Sullivan consulting firm selected the TopSeries system as the IFE product of choice for Product Differentiation and Innovation in the field of IFE and Connectivity. Through technical innovation, the Thales system design has many patents, which represent breakthroughs in technological IFE advancement that will help Thales better serve airline operations and passengers. Industry first achievements continue to grow in number. For example, the TopSeries system was the first system to: Provide an integrated approach to IFE, power, and connectivity Line-fit install in-seat video throughout a single-aisle aircraft Install on an A380 aircraft Announce Boeing selection for the B787 Provide Internet Connexion by Boeing connectivity and Satellite TV at the in-seat display For the passenger experience, the Thales system is enabling airlines to do things that have never been done before. In 2004, Middle East Airlines was the first airline in IFE history to install distributed video and audio throughout the cabin of an A320. In 2005, Royal Jordanian was the first airline to install audio and video on demand throughout an A320. And in 2006, Air Canada was the first airline to install audio and video on demand on regional jets. DEDICATED SERVICES FOR LIFE Airlines count on them. Having success on the system side of the business, Thales recognized that it had to balance out its offering by investing in resources and facilities dedicated to global services. In 2003, Thales formed a new digital media services business called TopEffects!, which today provides airlines with a range of applications, GUI design, and content management services. In 2006, the group introduced to airline customers an industry-first Web service called TopEffects.com. Through this Web service, airlines are provided with the necessary tools to manage routine tasks such as modify their content offering, define the media metadata, and view and validate menu screens. AEROSPACE SERVICES WORLDWIDE Leveraging Thales existing global service network, the Inflight Systems Group merged their maintenance and support Engineers working on system tests take a moment operations into a Thales division called, to smile at the camera! Aerospace Services Worldwide (ASW). This worldwide, 1,200-person support organization now offers shop repairs, training, meet and greet services, and complete turnkey maintenance services. In addition, a new 24-hour maintenance operation center is now open in Irvine, California. This technical center is capable of communicating directly with both field operations and the actual IFE systems during flight, providing early warning BITE and maintenance information. continued on page Third Quarter 2006 AVION

6 THALES continued from page 64 Contributing author of the Thales Profile is Lori Kranz, Vice President, Communications and a ten-year veteran of Thales Avionics. Lori was born, raised, and educated on the east coast of the US. In 1982, she graduated at the top of her class with a degree in Marketing. Lori was employed by Sony for 18 years and in 2000 joined Thales marks her 10th year anniversary working in the IFE industry. She is the VP of Communications for the Thales Aerospace Division in the US. Lori is married and lives in Newport Beach, California. THE ORGANIZATION It s growing fast. The development of the business is the result of dedicated, hardworking people and expanding facilities. Between 2004 and 2006, the Thales IFE business grew from 280 to over 800 employees and moved into new buildings that more than doubled facility space to 200,000 square feet. Charged with satisfying customer needs, the organization is building out a strong infrastructure to meet airline demands for today and tomorrow. Thales retains a people 1st human resource philosophy, a casual high tech work environment, and an open, flexible attitude towards its customers. The organization s priority is to meet customer commitments, and its strength rests on five key values: (1) Focusing on the Customer, (2) Behaving as Innovators, (3) Sharing Knowledge (4) Performing through teamwork and (5) Developing people. THE FUTURE OUTLOOK IFE planted the seed. When you speak to the VP/GM of the Inflight Systems business, Brad Foreman, the plan is that Thales will continue to Main IFE office in California widen its role in cabin systems by positioning itself as a firsttier supplier an integrator that brings together all elements in the cabin (i.e., seats, galleys, lavatories, sidewalls, lighting, and IFE). The catalyst behind this direction is market demand for the cabin solution to come together through a centralized organization. Thales proven track record shows that the company has successfully supported both missioncritical and complex systems Brad Foreman, VP/GM, Inflight Systems Group and Aerospace Division, US Director for defense and civil markets. The capability and experience is in place, and it is just a matter of time before the IFE industry will look to Thales as a leader in cabin integration. 66 Third Quarter 2006 AVION

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