GPS in Aviation
Yin Shih:
>>Basically, I don't think "free flight" will be a sales driver for at least 3-5 years.<<
I agree. It is too big a change to happen earlier than that. However, I do not think Trimble is relying on "free flight" happening faster than that.
>But many small planes that do this now do so using a hand-held GPS
and TRMB doesn't have any competitive models in this market segment. >>
Terra by Trimble was supposed to address that market, but has not had much success yet.
>>TRMB does have models for the large planes, but they would convert anyway for operational savings and safety so this is not new or add-on business.<<
Actually, it is new and add-on business for the next 2-3 years. I think about half of the US Commerical Airlines fleet still needs to be upgraded with GPS. Also, the CUGR product can be a biggie in military transport planes, which are typically 30-40 percent of all military aircrafts.(Total military aircraft in the world - About 80,000, half in the NATO countries).
>>There are two things holding back more planes and pilots from adding a panel mount GPS unit. 1) the cost of panel mounts is 5-10x that of a handheld with no obvious gain in functionality, except that the FAA is willing to certify a panel mount for IFR operations where it isn't for a handheld.>>
Is there really no performance difference between the hand-helds and panel mounted products? Would you use a hand-held for precision landing when WAAS becomes active?
>>Thus the big market in hand-held aviation GPS units.<<
At $1000 a piece at retail, at 40,000 units a year (four year obsolescence, 170,000 active planes), it is only a $40 million annual market. Or are you talking higher priced products?
Arun Gera |
