Considerations for Cabin Modifications & Upgrades
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1 Tronos Aviation Consulting Inc. PEI, Canada / Atlanta USA / London UK Airline Engineering & Maintenance: North America Presented by: Gary Weissel Managing Officer Tronos Aviation Consulting Considerations for Cabin Modifications & Upgrades
2 Agenda 1. Understanding the Aircraft Interior 2. Driving Factors for Interior Upgrades 3. Program Execution 2
3 Understanding the Aircraft Interior 3
4 What it s not! & + 4
5 What it is 5
6 Why are interiors so critical to airline success? IT S ALL ABOUT REVENUE GENERATION Distinguishes Airline Brand Is the Primary Passenger Touch Point Impacts First and Lasting Passenger Impressions Can Drive Customer Loyalty Supports Marketing Initiatives 6
7 Interiors are one of the most complex systems on an aircraft A single interior could have upwards of 50+ different suppliers. All these must work together to operate as a cohesive system for the passengers and crew Seats Cushions / Covers Restraints Galleys Closets Dividers Lavatories Carpet Laminates (flooring and wall) Fabrics Ceiling Panels Lighting In-Flight Entertainment (IFE) Passenger Address (PA) System Signage Sidewall Panels Floor Panels Controls (hydraulic & electric) Avionics Communications Enhanced Vision Systems External and Internal Video Surveillance Systems Emergency Equipment Rafts LifeVests Fire Suppression and Extinguishers Smoke Hoods First Aid Kits Medical Kits Restraints Emergency Locator Beacons Fire Axes (now only in the cockpits) 7
8 SECTION 2: Driving Factors for Interior Upgrades 8
9 Global Modification MRO Current Demand Latin America 4% Africa 3% Passenger to Freighter Conversion 7% Compliments of: ~US$ 575M in 2014 Interiors MRO Demand in N America Middle East 9% North America 25% $3.8B Europe 28% Asia Pacific 31% Painting 9% AD/ SB 9% Avionics/ Systems Upgrades 15% $3.8B Interiors 60% By Region By Types of Modification 9
10 Why do airlines upgrade their interiors? Product obsolescence Market positioning New routes / markets Branding changes Fleet commonality New fleet types 10
11 Main priorities for airline upgrades Schedules Cost Risk Mitigation 11
12 What drives program schedules? Outside of aircraft availability for the modification, the main drivers are Engineering Design Parts Availability Certification Plan and Schedule Depending on the program complexity and workscope, kickoff to completion can be anywhere from months to years (even to first installation) 12
13 Major Cabin Modification drivers in North America Entry of 787 into service (United / Air Canada / American) A350 Orders (Delta / United / US Airways [American]) Merger fleet commonality programs - American / US Airways merger - United / Continental merger Cabin density upgrades Used aircraft trading (Entry into Service mods) In-Flight Entertainment and Connectivity upgrades Premium economy product evolution (?) 13
14 In-Flight Entertainment and Connectivity (IFEC) Smart / Mobile IFE - Device and streams content 1. Locally loaded content (airline owned device) 2. On-aircraft loaded content 3. Off-aircraft connectivity and content access Lightweight IFE - E.G. Lumexis IPAX, Zodiac s Rave, etc. Ka band satellite - Claiming Mbps speeds - True media streaming capabilities - Currently on-board JetBlue and United WLAN 14
15 Premium Economy s Two Distinct Sectors Source: om Source: au Source: Source: Source: Source: Source: Source: Source: om Source: wwwairfrance.com 15
16 Significant Difference in Product Offerings North American PY Additional legroom (4-6 ) - Avg pitch of Priority boarding Expedited security lines PC power (when available) International PY Additional legroom (6-15 ) - Avg pitch of Wider seat ( ) Differentiated service product - Amenity kits, drinks, meals, headphones Larger seatback video monitors Separate cabin and dedicated lavatories Priority boarding and additional luggage allowances Expedited security lines PC power 16
17 Upgrading N American Premium Economy? Several major US operators are currently evaluating a transition from current N American PY to International PY type products. 17
18 SECTION 3: Program Execution THE COMPLEXITY OF PROGRAM IMPLEMENTATION AND THE ROLE OF ENGINEERING 18
19 Example modification program Modification of wide body aircraft fleet for installation of New premium economy class seats Upgraded IFE in new seats Ka band internet and live TV connectivity Source: Source: Source: 19
20 The complexity of interior modification programs Define Aircraft Mission Define Seat Count Requirements Define In-Flight Service Requirements Layout Passenger Arrangement (LOPA) Design Engineering / Certification Plan Development & Execution Source Design and Certification Services Develop a Detailed Scope of Work Define IFE & Connectivity Requirements Define Bill of Materials Source Parts Kits Source Touch Labor (MRO) Install Interior Complete Certification 20
21 Many departments provide significant input Inflight Service Marketing Finance Planning On-Board Products Revenue Mgt Engineering Cabin Modification Scope of Work 21
22 Engineering s role in implementation Define Aircraft Mission Define Seat Count Requirements Define In-Flight Service Requirements IFS OBP Layout Passenger Arrangement Planning (LOPA) Mktg FIN Revenue Mgt Design Engineering / Certification Plan Development & Execution Source Design and Certification Services Develop a Detailed Scope of Work Define IFE & Eng Connectivity Requirements Define Bill of Materials Source Parts Kits Source Touch Labor (MRO) Install Interior Complete Certification 22
23 Engineering s role in implementation Define Aircraft Mission Define Seat Count Requirements Define In-Flight Service Requirements IFS OBP Layout Passenger Arrangement Planning (LOPA) Mktg FIN Design Engineering / Certification Plan Development & Execution Engineering Oversight Source Design and Certification Services Develop a Detailed Scope of Work Revenue Mgt Define IFE & ENG Connectivity Requirements Define Bill of Materials Source Parts Kits Source Touch Labor (MRO) Install Interior Complete Certification 23
24 Suppliers coordination complexity E.G. PY Class Seat Upgrade with IFEC Installation Aircraft Installation Engineering Design Certification Seats IFE Headend Equip Connectivity Equipment Soft Goods Passenger Service Units Misc Kit Parts In-seat IFE In-seat power Cushions Covers Seatbelts Crew interface Antennas Carpet PSU spacers Screens Plug Units Content Drives Modems Curtains Cabin diivders PCUs In-seat power boxes Distribution Units Signal Control Units Laminates Stowage units Control Boxes Integrated PRAM Wireless Access Points Placards Emergency Equip 24
25 The role of Engineering? Detailed Scope of Work development (utilized as backbone of the entire project and program management) Heavy input into sourcing of engineering and certification services - Design engineering v. certification engineering - ODA v. non-oda - Capabilities and risk assessments 25
26 Engineering oversight across the project spectrum Engineering Design Certification Parts Suppliers Installation 26
27 The pitfalls of cabin modification programs Poor initial project scoping Sourcing to the wrong partner Unrealistic schedules Poor program coordination between parties Unclear kitting requirements Certification (Sequencing, overworked ACO s, rule interpretations, schedule delays, etc.) Delayed start on Instructions for Continued Airworthiness 27
28 How do we avoid the pitfalls Develop realistic schedule and milestone dates reduces delays and unachievable results - Build in additional time in schedules for the program unknowns Develop an appropriate and detailed scope of work which will ensure nothing is missed, avoiding delays and changes Select the correct suppliers to meet schedules and budget requirements Ensure open, clear, consistent and CONSTANT communication between all involved parties Have STRONG program management in place to hold suppliers accountable, to schedule and manage resolutions to program issues 28
29 Tronosjet Aviation Consulting Inc. PEI Canada / Atlanta USA / London UK THANK YOU Gary Weissel Managing Officer PH: Mobile: gweissel@tronosjet.com 29
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