While many carriers already offer consumers the ability to connect mobile devices to broadband on an airplane, international regulators are looking to open up the possibility of using a mobile network on board.
In November, the European Commission, the European Union's executive arm, gave the green light for 3G and 4G services to be used on aircraft, while U.S. regulators considered a similar move.
"Now more than ever, aircraft passengers expect high-speed Internet connections in the air especially on long flights" Schmidt said.
Efficiency, efficiency, efficiency
Airlines are coming under increasing cost pressures, particularly from rising fuel prices and the need to have more efficient aircraft.
Oil prices have seen a spike in the last month on supply concerns coming from the violence in Iraq adding pressure to airlines.
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Carriers are not only looking to save on fuel but are also looking to buy newer and more efficient aircrafts.
"The key is efficiency when it comes to airlines, fuel efficiency is killing them ," Plucker told CNBC in a phone interview.
"They never had great margins or great seat margins, but now instead of thousands or dollars per seat they are getting tens of dollars per seat."
European airlines are facing a tough financial situation with Lufthansa issuing a profit warning last month, and Air France-KLM posting a 445 million euro loss ($607.8 million) for the first quarter of the year.
The current aerospace industry of government-controlled airlines and bloated companies is "not viable in the long term", according to Ed Hunt, senior consultant at IHS Jane's.
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Currently, different states own large portions of major carriers. The French, German and Spanish governments own around 26 percent of Airbus' stock, while the Italian government owns a 30 percent stake in Finmeccanica.
Hunt also said the industry is saturated with too many players and that debate around restructuring in the sector is likely to take place.
"The problem is the European aerospace industry employs more people than the U.S. equivalent but only 40 percent of its revenues. There are too many of the same company employing too many people. There is going to be a need to do something."
- By CNBC's Arjun Kharpal