Agenda

• Product Description

• Operation Plan

• Market Analysis

• Competitors

• Business Model

• Marketing Plan

• SWAT Model

• Future Development

Background

Up to 11KM deep

Cost per day: 150K-200K$ Salvage time: 7-14 days

Plane crashes into the ocean– The search for the black box

Idea Outline

Communication with box: acousticAvoiding mass operation with our product

The Existing Box

During Flight:

This Cable feeds flight data and

voltage from plane

The Electronic boards process the

data

Flash Memory Card

CSMU – crash survivable memory unit

The Product

Receive ModeTransmit mode

101001011…

001111010…

Flash Memory Card

• Plane crashes into the ocean• Controller sorts flight data

• Controller enters waiting mode• Transmission from search ship arrives• Message says: “start transmission”

• Board switches to Transmit mode

• Modem modulates bits to electric signals• Transducer transduces electric signals to acoustic signals

• Board prepares file and sends it to modem

T/RController

Board

Transducer modulator

demodulator

Batteries

Modem

Order of transmission

Transmission is ordered due to limitedbattery power and liability• Data is sorted by:

• Time – descending recency• Formal necessity – mandatory parameters first• Importance to crash investigation

• Data can be sent as requested:• protocol allows specific requests

• Data is compressed• In the future – self detection and sending of irregularities

Operation Plan I

Considerations:

• Aviation industry nature

• Gap between box manufacturers and

product beneficiaries

• Economies to scale – few large companies

dominate the market

• Rigid regulation and intricate

authorization

Operation Plan II

First Stage – independent R&D:

• Patent registration

• Estimated Needs for the first stage:

• Development: 6 months

• Team: 6 engineers, 4 businessmen

• Funding: 3M $ to raise

• Meanwhile: lobbying for regulation

Operation Plan III

Second Stage – engagement:

• Agreement with 1+ box manufacturer/s:

• Customization

• Common R&D teamwork

• Estimated Needs for the second stage:

• Development: 1 year

• Team: 3 engineers, 4 businessmen

• Funding & housing : By manufacturer

Market Analysis I

Year 2001 2004 2020 2020  

   New

airplanes UpgradedNew

airplanes Sum

Commercial Airplanes- Major market 15,000 1,000 5,000 18,400 39,650

Jet planes- Secondary Market 50,000 1,000 6,500 30,000 87,500

Sum 65,000 2,250 11,500 48,400 127,150

Market Analysis II

• Black box manufacturers• Major Trends:

• Stable Growth• Strongly depends on airlines growth

• Distribution Channels: box manufacturers

• Major Players:• FAA (Federal Aviation Administration) and other regulating authorities• Commercial airplane manufacturers

• Airline companies

Market Analysis III

Entry Barriers:

• Rigid regulation (FAA)

• Conservative market

• Centralized industries:

• Aircraft industry

• Black box industry

• Huge corporations

• Infrastructure dependency

• Uncertainty

Competitors I

• Smiths Industries (~20% market share)

• Others:

• penny & Giles

• Universal Aviation

• British Aerospace

• EMH Technologies

• Direct competitors – box manufacturers:

• Honeywell (~30% market share)

• L-3 Communications (~30% market share)

Competitors II• Indirect competitors –

Alternative solutions:• ‘The infrastructure solution’ –

Broadcasting data to ground constantly

Example: Refael & Elbit-Starling• ‘The partial infrastructure solution’ –

Broadcasting to ground on emergency• ‘The engineered solution’ –

The box detaches from plane and floats

DRS Flight Safety & Communication

Business Model I - Pricing

• Direct costs -• Saving search costs: average of $1.5M• Insurance premium saving: $3,000-$4,000 per plane a year

• Indirect costs -• Damaged reputation• Diplomatic damage in case of a suspicion for terror attack Added revenue to box manufacturer: $5-$6K per unit Our share - $3K per unit

Business Model II-Revenue• Modest scenario:

• New commercial planes: ~30% out of 1000• Upgraded and Domestics: ~550 planes Sum: 850 planes and 1700 boxes Added revenues to manufacturer: 9-11M Our share: 5-6M $

• Best-Case scenario:• New commercial planes: 1000• Upgraded and Domestics: 1000 Sum: 2000 planes and 4000 boxes Added revenues to manufacturer: 20-24M $ Our share: 10-12M $

Development Stage I - Cost

• Salaries for the 10-12 employees and

consultant- $500K• Rental fee - $30K• Development of ASIC - $200K• Patents registration- $600K• Transducer Housing (Outsourcing)- $200K• Amplifier & Modem customizing - $200K• PR & Trade shows - $800K

Total costs- ~$3M

Marketing Plan I

• Positioning - an efficiency & safety

mean to:• The Black box manufacturers• The FAA

• Mediums to reach our customers -

Doron Yogev- connections with:• Black box manufacturers• The FAA• Airline companies

Aviation Trade shows

Potential Trade shows:•July 2003-

• Wittman Regional Airport, Oshkosh, WI•September 2003-

•Harrah’s Reno, Reno, NV•Orange County CC, Orlando, FL

•October 2003-•Palm Springs, CA

SWOT Model I

• Strengths:

• New technology

• Chance of regulation

• Partnership

• Weaknesses:

• Uncertainty – Must have VS. Nice to…

• Dependency on manufacturers

• Trouble in funding due to high risk

SWOT Model II

• Opportunities:

• Anti-terror approach – keenness to

accept new ideas related to safety

• Threats:

• The box’ manufacturers’ R&D

Future Development

Third stage: penetrating the marine market

• Large naval vessels also carry quite

similar black boxes

• Entry barriers – lower

• Regulation – less rigid

• Atmosphere – more opened to innovations

• Technical facileness – in comparison to

aviation

Credits

We’d like to thank:Dorog Yogev – Jet Link * Yoseph Statman – NASA * Michael

Thompson – Honeywell * Ning Xiao – LinkQuest * Arye Cohen

& Hanan – Bedek * Michael Sahar – Tadiran * Yitzhak Ben

Ya’akov & Jacob Barak – El-Al * Ed Hischmeyer – FAA * Efi

Zahavi * Sela Meyouhas – Underwater Electronics Branch /

IDF Navy * Nir Barkat – BRM * Dana Teltsch – HUJI * Aviram

Arbel – Noytech * Arye Fredelis & Amiram – EL-AL

Dan Aks * Yuval Shafir * Moshe Bar Siman Tov

Tal Kramer * Yoav Magen * Avi Gruber