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 The deal highlights the growing demand among travelers for robust
Internet connections worldwide on business jets. It also could
freeze other equipment makers out of Bombardier's long-distance
business planes, although the Canadian manufacturer says it hasn't
decided yet whether Honeywell's new JetWave hardware will be
standard or optional for its clients.
"Honeywell has obviously been invested a lot in the connectivity
market," said Jack Jacobs, vice president of marketing for Honeywell
Aerospace. "There will be 10 billion smart devices on the planet (by
2016, but only) 7.3 billion people. They're going to want to get
connected anywhere, any time."
Bombardier's Director of Marketing Brad Nolen did not disclose how
much the manufacturer will pay Honeywell for the hardware or how
much it will charge customers to use it.
The number of broadband installations for business jets and
commercial airlines will grow 19 percent per year over the next five
years, according to Jacobs.
Honeywell hopes to seize this growing market through its JetWave
hardware, which enables not just local but worldwide high-speed
Internet access. Partnerships with manufacturers such as Bombardier
may help it, along with its agreement to provide hardware for
certain high-speed services from British satellite provider Inmarsat.
Jet ConneX, Inmarsat's product aimed at business jets, will service
Bombardier in the deal announced Tuesday, beginning in 2015,
although the exact terms of the deal were not disclosed.
Other business planemakers such as Gulfstream Aerospace, owned by
General Dynamics Corp, offer a range of optional wireless systems
based on the needs and budget of their customers.
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Bombarider may depart from this model by outfitting all the jets in
its Global 5000-8000 series, which can fly more miles and carry more
passengers than other Bombardier business planes, with at least some
wireless service, or it may make the service optional.
Still, an industry specialist says high-speed, in-flight Internet is
a worthy investment for business aircraft manufacturers because
demand for it keeps growing.
"Business airplanes have always been like offices in the sky," said
Dan Hubbard, a spokesman for the National Business Aviation
Association. "Wifi certainly folds into that whole concept."
(Additional reporting by Lewis Krauskopf in New York; Editing by
Cynthia Osterman)
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