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The Flight Plan
How Norcross-based EMS Technologies is keeping you connected
by Bobby L. Hickman
June 2, 2009
If you've taken advantage of the
in-flight wireless communications services being rolled out by such airlines as Delta and AirTran,
you can thank a Georgia firm for making it happen: Norcross-based EMS Technologies, Inc. (NASDAQ:
ELMG).
EMS provides the equipment – antennae, routes, data storage, wireless access points,
software and other components – that systems integrators use to provide in-flight entertainment and
connectivity solutions for aircraft around the world.
In fact, EMS was honored last month by the American-Israel Chamber of Commerce Southeast
Region with the "Deal of the Year" award. EMS and Starling, a small Israel-based company, formed an
alliance in 2008 to combine their respective technologies for airborne satellite antenna systems
into a joint product for in-flight entertainment service providers. "The EMS-Starling broadband
Ku-band antenna system supplies commercial passenger airlines with connectivity and global coverage
at unprecedented speeds and quality," according to the Eagle Star Award announcement.
In accepting the award, David Smith, EMS Defense & Space general manager, said, "We're
not going to stop there. We're going to modify the product mix and continue to sell to commercial
airliners, business jets and military aircraft, as well as to various types of ground mobile units
for troop communications in a tactical scenario."
Paul Domorski, president and CEO, EMS Technologies, says the award represents just one of
the many facets of airline connectivity where EMS is involved. Those include consumer services for
carriers like Delta and AirTran; communications for military planes and Air Force One; and wireless
solutions over satellite and terrestrial networks for the aeronautical, asset tracking, defense and
mobile computing industries. "Different airline companies are taking different approaches to the
market," Domorski says during an interview. "Our goal is to be the airline connectivity partner
that serves the entire market segment."
EMS is benefiting from the continued adoption of in-flight connectivity by U.S. airlines –
particularly Aircell's GoGo Inflight Internet service. Aircell expects to install GoGo on 1,000
aircraft this year, and EMS supplies two-thirds of Aircell's cabin wireless infrastructure. AirTran
plans to deploy GoGo on all its flights by this summer, while Delta expects to expand the service
to more than 300 domestic aircraft by the end of 2009, according to the airlines' Web sites.
(Domorski says Delta is installing the system on six planes each night.) Aircell's Web site stated
the system is also available on all Virgin America flights; on certain United and American flights;
and will soon be available on Air Canada. According to its Web site, GoGo costs $7.95 for access
from a Blackberry of similar device; $9.95 for laptop access for flights less than three hours; and
$12.95 for more than three hours.
EMS is also working with a number of other companies aside from Aircell and Starling. EMS
Formation – which EMS acquired last year to gain access to the commercial aircraft connectivity
market – won a significant contracted earlier this year with LiveTV LLC. EMS Formation will provide
rugged data storage for up to 1,000 aircraft that are deploying LiveTV's in-flight entertainment
and connectivity systems for commercial and business airlines. EMS also provides wireless access
points to Alaska Airlines and Southwest, which are beginning in-flight tests with system integrator
Row 44. Outside of North America, EMS is a global supplier to such airlines as Air France, Qantas,
Emirates Airline and Ryanair.
While U.S. airlines are now rushing to implement in-flight wireless, the service began
several years ago, predominantly in Europe, Domorski says (pictured above). There are some 40
different airline trials now underway for systems using EMS components, he says. European and
Middle Eastern airlines are more interested in entertainment services, while domestic carriers are
more interested in customer Wi-Fi – a "Starbucks in the sky" – Domorski says. JetBlue also uses EMS
antennae to provide live television broadcasts on their planes.
Aircraft systems provide technical hurdles: "It's challenging connecting a moving plane and
satellite," Domorski says. However, the delay in implementing U.S. in-flight systems is more
related to the economic challenges airlines have faced in recent years. Domorski says more airlines
are embracing the technology this year, in part to generate more revenues. "It's also an
opportunity for a better passenger experience," he notes. "It's a silent service that doesn't
bother other passengers and allows you to stay connected - which is particularly important to the
younger generation."
The growth of wireless connectivity in all sectors has helped EMS thrive. Domorski says,
"The economy affects everybody to some extent but we've been fortunate to continue to grow." During
the last four years, EMS reported 18 percent growth in revenues, totaling $335 million in 2008.
During that same period, EMS reported compounded annual growth of 31 percent in operating income
and 37 percent in earnings per share.
The company has also grown by acquisition, adding four new companies in 2008 in the United
States and the United Kingdom. While no deals have been announced this year, Domorski says, EMS
remains interested in bolt-on acquisitions that build on the company's expertise in connectivity
and satellite tracking. "This is speculative on my part, but by the end of the year, it
wouldn't surprise me if we did one or two more deals."
Founded in 1968, EMS remains the only space-related business headquartered in Georgia. The
company has 1,130 employees, of which 620 work in the state. Domorski says EMS remains "a Georgia
technology company that is very much involved in Atlanta community."




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