03 Avionics Customer Services News

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1 Update N January 2015 Avionics Customer Services News

2 >> Content u P.2 u P.4 u P.6 u P.8 u P.9 u P.10 Listening to Customers Thales Regional Operators Conferences in 2014 Customer Support essentials Managing Direct Maintenance Cost per Aircraft program Innovative Services to Customers TopWings integrated services Did you know about? Thales Group multi-disciplinary expertise Thales Avionics footprint Recent Press Releases Where can you next meet Thales?

3 Update N >> Welcome Daniel MALKA General Manager Avionics Services Worldwide Thales Avionics Beyond regular Customer meetings, Thales is striving to provide more opportunities for Customers to meet and to learn more about Thales. Thales conferences are organized for such purpose. In the last quarter of 2014, Thales has organized four regional operators conferences in key regions. Our TROC events have been very rich in terms of exchange and allowed also Customers to further express or clarify their expectations. You can read more on these events in our Listening to Customers section, and be convinced that Thales ASW will continue to interact with the Airlines community. The section Customer Support Essentials focuses this time on Thales s approach to monitor and control maintenance costs, which are key drivers of your own business challenges. You can count on Thales to work closely and continuously with you on such critical aspects of Customer Support. Finally, our section Innovative Services to Customers introduces new services being developed by Thales in the EFB segment. You can discover there the broad range of Thales solution, from a ruggedized tablet up to fully embedded connectivity systems. Now is the time of seasonal greetings, so I take this opportunity, on behalf of the entire Thales ASW community, to wish you all the best for 2015, which I am sure will provide even more interesting challenges for all of us. Daniel MALKA Avionics - Customer Services News / 01

4 TR C Thales Aerospace Operators Conference Listening to Customers Thales Regional Operators Conferences in 2014 Since our last publication, Thales Avionics has hosted four Thales Regional Operators Conferences (TROC) around the world. These events provided Customers with a unique opportunity to view Thales newest products and services, share ideas, and strengthen relationships with Airlines. «Regional conferences allowed to share Thales Avionics 2020 vision with all Customers» PLENARY SESSIONS FOR UPDATES ON THALES S PORTFOLIO Conferences were condensed in 2 day sessions to maximize valuable time spent with Customers. The agenda included Thales news on current and future in avionics, including: Avionics 2020 Innovation charter, to introduce Thales vision of future cockpits Aircraft program reviews, including Boeing and Airbus aircraft platforms (A320, A330, A380, B787) Incoming mandates, with specific focus on ADS-B surveillance in Europe and also on Head Up Displays in China TopWings integrated and connected services Thales Trading offering for the purchase of used Thales or non-thales equipment Guest speakers from other organizations were also invited to participate from OEM Services, CAAC and Airbus. These discussions gave an opportunity to demonstrate the work that is being carried out between Thales and these other key players in the industry. A HIGH NUMBER OF CUSTOMER PARTICIPANTS The regional conferences hosted around the world allowed to touch base with many of our Customers: 40 participants in Americas 50 participants in Europe 80 participants in Asia Pacific 40 participants in Middle-East «The Link by Thales» THALES - Quentin Reytinas It was a great opportunity for Customers and Thales senior leadership teams to discuss and exchange on trends in the avionics industry. 02 / Avionics - Customer Services News

5 Update FRUITFUL WORKSHOPS AND SIDE- DISCUSSIONS TO GET DIRECT FEEDBACK Workshops were organized to collectively evaluate the support provided by Thales in various areas. Customers could provide their feedback on subjects such as Entry-Into-Service (EIS) preparation, technical support and communication tools, online services hosted on Thales Customer OnLine (COL) portal, EFB projects and the connected aircraft, etc The outcome of these working sessions will also enable specific follow-up by regional teams, on key current or future subjects raised. AN INSIGHT OF THALES FACILITIES While most conferences were held out of Thales facilities, the conference in Toulouse, France gave N Customers the opportunity to discover Thales premises where visits of two unique simulation areas were proposed. First, The Link by Thales, which enables to model avionics suite developments wrapedly. And SILAB, bridging various aerospace environments, from onboard aircraft (Cockpit and Cabin) to ground centers (AOC, MCC ). Both these laboratories enable to mature complex operational scenario, for avionics product design and associated services. The site visit also included various cockpit integration benches. A SUCCESSFUL GET-TOGETHER MEETING Positive feedback was received from Customers highlighting particularly the importance of being invited to regional events that were close to home to fit in very busy schedules. Based on this year s success, other regional events will take place on a regular basis. u 200 Customers attended Thales s regional conferences, organized in our 4 key market areas u Thales presented its Avionics 2020, TopWings and Trading offerings, and debates enabled to gain feedback on Thales support offered to Customers u In Europe, Customers had the opportunity to visit Thales facility and simulation labs u Thales will continue to organize regularly such successful regional events >> CONTACT: François PIOLET /

6 Customer Support Essentials Managing Direct Maintenance Cost per aircraft program In the current economic environments, Airline Operators are increasingly focusing on cost of ownership, operating and maintenance costs. Through the sale of an Aircraft, Airframers traditionally commit Suppliers to secure the maintenance costs which will be born by Customers during the life of this Aircraft. As a Supplier of all major Airframers, Thales ASW is therefore engaged, by constantly enhancing products, services and processes to monitor and control Direct Maintenance Costs (DMC) related to its avionics products. THALES UNDERSTANDING OF MAINTENANCE COST Challenges of Direct Maintenance Costs may vary whether we talk about the Aircraft maintenance, or about the rotable components maintenance. As a whole, DMC can be seen as the yearly costs to support one product during an Airline operation. For Thales, maintenance costs are representing an expense per flight hour of operation for an Aircraft, related to a Thales component. Reliability is therefore a key driver influencing such maintenance costs, through the number of core unit removals which need to be repaired. And so are the sales prices for No Fault Found (NFF) and for standard repairs. A STRONG SUPPORT MANAGEMENT TO GUARANTEE A HIGH RELIABILITY Since the creation of ASW in 2004, Thales has progressively enhanced its technical support and in-service program management activities. A strong technical support back-office is now in place, to follow-up technical events and monitor reliability per product, per program, per Airline Operator or at a worldwide level. Analyzing the technical facts and reliability trends allow to ensure a steady satisfactory product reliability. In parallel, program management back-office manages regular product evolutions, through the implementation of Vendor Service Bulletins. These evolutions can address obsolescence, or reliability improvements, throughout the Aircraft program life cycle, and contribute to keep avionics products maintainable and reliable over the years. KEEPING PRODUCTS UP-TO-DATE Maintaining avionics equipment up to the latest available standard is the most efficient way to insure its repair ability over time, and to limit associated repair costs. On the contrary, maintaining old technologies increase the repair costs more and more rapidly, due to the shrinking of technology lifespan. For example, electronic components become obsolete in a much shorter period than before, and cockpit display CRT tubes are very expensive now compared to LCD matrices. Upgrading a product to a more recent technology can therefore pay off compared to repair costs of an old one. Such new standards can be proposed on attrition, but also through monitored modification campaigns organized by Thales dedicated retrofit teams. CONTACT THALES TRADING FOR USED SERVICEABLE REPLACEMENTS When one product line is reaching its end of life, alternate repair solutions exist to increasing repair costs. Thales has developed one year ago its Thales Trading services, able to propose used serviceable components as a replacement to brand new Spare Parts which become expensive to produce, or as a substitute to expensive major repairs. 04 / Avionics - Customer Services News

7 Update N SECURING COSTS THROUGH BY- THE-HOUR REPAIR CONTRACTS To anticipate expenses, Thales Repair Price Catalogs are available on a yearly basis, informing on NFF prices and standard repair prices. But to forecast these costs on a longer term, Thales proposes By-The-Hour maintenance services contracts. Such contracts allow to secure both a level of NFF rate, and also a maintenance fee per flight hour of operation. Such agreements between a Customer and Thales insures that repair expenses will remain the same, whichever the number of removals. Also to be noted, the cash out for a Customer is limited and spread along the years, thus indirectly limiting the cash flow required to insure maintenance. Depending on the financing options, this can result also in reducing monthly expenses, instead of facing punctually an expensive repair. This service can be used in the shops or even by line maintenance staff to efficiently avoid unnecessary removals. Based on product BITE data analysis, it becomes easier to detect if the core unit is really faulty or if its removal can be avoided when the failure is due to some other component. NFF charges can thus be reduced over time and for a large set of components. By acting on product reliability, by ensuring committed repair fees and by limiting NFF removals, Thales is clearly addressing all drivers of maintenance costs for any Customer. Other avenues exist, such as workshops on Minimum Equipment List (MEL), improvements of Aircraft Maintenance Manual (AMM) or Trouble Shooting Manuals (TSM), or internal lean repair projects. And Thales is willing to address any of these concerns with all parties involved, namely the Airframers and the Airline Operators, in order to establish a long term relationship and partnership towards shared stakes and objectives. Airbus SA ( guaranteed ) Airbus SA ( actual ) «Direct Maintenance Cost trends for Airbus SA shipset» BETTER TROUBLESHOOTING TO REDUCE NFF OCCURRENCES The number of products installed onboard an aircraft tend to decrease for each new program. Products become less numerous, but more complex. The complexity affects also the maintenance costs, as even on platforms with centralized maintenance, unnecessary removals can generate NFF costs for an Airline Operator. In order to ease Aircraft troubleshooting, Thales has developed an e-troubleshooting service on Airbus platforms. u Thales is managing the entire product life cycle for each inservice program in order to insure maintainability and reliability on the long term u Thales Trading is another solution to find alternate replacements for equipment out of production u Repair By The Hour contracts are key to jointly secure costs forecasts and long term services availability u Thales is also engaged to improve Aircraft and product troubleshooting for the sake of easier and cheaper maintenance >> CONTACT: Joël SAN MARTIN / 05

8 Innovative Services to Customers TopWings integrated services TopWings is the brandname of Thales Electronic Flight Bag solutions that integrates hardware and software seamlessly, streamlines operational efficiency and significantly reduces operational costs. Aircrews obtain access to real time data including air traffic information and weather updates. This eases flight rerouting and reduces aircraft Turn Around Time. TopWings global solution delivers the right information to the right people at the right time, transforming the aircraft into a communication node of the Airline s information system. As the prime contractor, Thales takes the overall responsibility of implementing the EFB solution, allowing easy deployment and faster return on investment. WHY TOPWINGS? TopWings encompasses: A modular offer providing a tailored answer to your needs A choice of hardware, pilot or aircraft attached, software, plus a wide range of services One-stop shopping including program management Certification and operational approval support Training Process evaluation for your selected solution Avionics test bench integration and installation support Lifecycle support and maintenance, new application and technology upgrades Fully integrated with your back-end systems (Flight Planning System, Crew Rostering, Maintenance Information System, ) TOWARDS A CONNECTED AIRCRAFT Thales TopWings provides a dynamic information solution for aircraft operators enabling the live transfer of data from the aircraft to the ground. In crowded skies, it allows improved management of flight by increasing situational awareness and safety. Automated technology supersedes the need to handle data manually reducing the risk of human error. «A connected EFB solution with integrated hardware» THALES PAD, A MOBILE AND CONNECTED EFB SOLUTION Thales Pad is a tablet which combines the best of consumer and avionics worlds, a docking station and an Aircraft Interface Device. Pilot friendly touchscreen Adapted to cockpit environment: Readable in all luminosity conditions (day and night) Avionics grade display Fully compliant to DO160 avionics environment standard and EFB AC C and AMD Avionics and open world secured communications (3G, LTE/4G, Wifi) Patented docking system Compatible with TopWings offer «Thales PAD, a fully compliant EFB» 06 / Avionics - Customer Services News

9 Update N «Access page for Navigation Database e-service» SILAB, A DEDICATED PLACE TO DESIGN YOUR NETWORK Located in Toulouse (France), SILAB provides an environment to build and integrate our solutions with customers. It allows us to develop solutions tailored to Operators needs. SILAB enables early validation of new services through simulations, integration of EFB solutions and acceptance phases in an aeronautical environment. FOCUS ON ONE OF OUR CUSTOMERS SATA Air Açores, a Portuguese Airline operating scheduled flights to the Madeira Islands, mainland Portugal and other destinations in Europe, has chosen the Thales TopWings Electronic Flight Bag for the Airline s Bombardier Dash8 fleet. SATA Air Açores selected the highly flexible new version of TopWings, one of the most advanced EFB solution in the market, which will enable the Airline to utilize multiple EFB functionalities including electronic documentation and e-mission functions such as Operational Flight Plan and Flight Briefing package interfaced with the ground flight and crew planning system. «SILAB, a representative environment to mature TopWings solutions» u TopWings brings Thales expertise in avionics components, software applications, connectivity, data security and information systems u Thales Pad is fully compliant with both avionics networks and open world environments >> CONTACT: Pierre-Yvan PECUNIA u TopWings is modular from a portable device up to full EFB systems and services / 07

10 Did you know about? Thales Group multi-disciplinary expertise The commercial aviation industry has become more and more challenging, and to respond to a more demanding market, Airframers have to offer Aircraft that are safer, easier to fly, more secured but also more efficient. Thales benefits from a large spectrum of expertise, in order to be and remain a solid partner onboard these platforms. This technology expertise in such various domains, along with the innovation capabilities inherent to high investments in research and development, contribute to insure a global network of skills and partnership able to address complex needs. TopWings is a fairly good example of Thales ability to propose a full service of integrated connectivity for Aircraft, security of downlink data, within a robust airborne hardware complex system. Future services such as Health Management System will also rely on the capability to bridge onboard interactive systems with ground reporting or analysis means, through a full connectivity between cockpit crew, line maintenance, Airline Operation Centers, Maintenance Control Centers, and beyond. «Thales multi-domain divisions» Safety is a key value of Thales, taken into account in each product designed to fly onboard any commercial Aircraft or also for systems deployed on ground transportation Security is a key asset for Thales services provided to banks but also for the whole range of defense activities Connectivity is a backbone for In-Flight Entertainment (IFE) systems, as well as for products and services associated to satellite communications and for air traffic management «Thales fields of expertise» u Thales civil and defense fields of expertise are a real strength to enter diverse markets u Thales major businesses require mastering security, connectivity and complexity u Thales will continue to take benefit of its numerous competences to address your increasing needs in all these areas 08 / Avionics - Customer Services News

11 Update N Thales Avionics footprint Recent Press Releases AVIONICS SYSTEMS SELECTION Air China selects Thales for its B737 satellite communications Air China has selected the Thales TopFlight SATCOM satellite communications solution for their 22 B737 aircraft, scheduled for delivery between 2015 and The Thales TopFlight SATCOM is the latest generation in satellite communication systems, offering voice and data services for both cockpit and cabin. It was the first ARINC 781 SATCOM system to be certified on Boeing aircraft, and it remains the lightest and the most reliable SBB satellite communciation system in the commercial air transport market. Its B737 configuration will provide two voice and one data channels, enabling ACARS & FANS1 communications, and can be configured to deliver Swiftbroadband to the cockpit, thus future proofing cockpit connectivity for the industry s increasing data requirements. This selection is a result of a reliable product and the Thales quality of support, said Air China. Neuilly-Sur-Seine, Date Month 2014 / 09

12 Where can you next meet Thales? >> Airline & Aerospace MRO & Flight Operations IT Conference AMERICAS 2015 u Miami, FL (USA) u March 24 th -25 th, 2015 Contacts If you have questions with regards to this publication, please contact: mailto: If you want more information, please visit our website at: If you wish to subscribe or unsubscribe, please contact: mailto:

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