‘Tis the season for restructuring in the aviation world. And for one supplier a deal years in the making may finally be on the horizon.
IFEC
Panasonic Avionics appoints Joe Bentley as CTO
Panasonic Avionics has a new Chief Technology Officer. The company announced that Joe Bentley will fill the role vacated by David Bartlett in January. Bentley’s career at PAC begins today.
American Airlines takes control with new WiFi portal launch
American Airlines completed its inflight connectivity systems upgrade last year and now is taking that more difficult step, harmonizing the login portal for its passengers. An updated, unified interface deploys on the Viasat and Gogo-fitted aircraft this month.
Long live the Queen: The Weekly Wrap
Some 747 farewells transitioning into possible electric aircraft growth. Plus an interview about the upcoming FTE/APEX Virtual Expo and lots more!
Viasat raises $175 million in share sale
Viasat’s liquidity got a strong boost this week the company placed $175 million in shares through private transactions. The deal bolsters Viasat’s cash balance while not assuming additional debt, an important longer term factor for the company’s success.
Deutsche Telekom expands free GX Aviation wifi offering on Lufthansa Group flights
Inmarsat, Deutsche Telekom, and the Lufthansa Group are extending their complimentary inflight wifi access plan. First launched in July 2019, the companies increased the number of covered customers in April 2020 and intend to keep the program alive at least through December 2021.
Global Eagle refocuses on long-term outlook
There is an air of optimism, of relief emanating from the C-Suite at Global Eagle this week. And, to be sure, a realization that massive amounts of work remain for the company to truly succeed, but a conversation with CEO Josh Marks and President Per Noren suggests massive optimism now that the company’s interest payment burdens halve thanks to an agreement to convert debt to equity through the Chapter 11 bankruptcy filing made on Wednesday.
Global Eagle secures $80 million DIP financing in Chapter 11 bankruptcy filing
Global Eagle will restructure and recapitalize under Chapter 11 of the US Bankruptcy code. Substantially all of the company’s assets are to be acquired for $675 million, reducing total debt by approximately $475 million. The deal also includes $80 million in fresh debtor-in-possession financing to ride out the current downturn.
Cutting connections: Reviewing the connected aircraft retirements
Hundreds of aircraft rapidly retired from service. Hundreds more shifted into limbo, unclear of when they might fly again. The news no longer surprises, though some of the retirements bring about a sense of loss. For inflight connectivity vendors the impact is more than a sense of loss, however, as it maps to real revenue shortfalls with the aircraft removed from service.
Time is running out for Global Eagle’s financial restructuring
Global Eagle bought itself a few extra weeks. Literally. The company missed an $11 million interest payment on 9 July but negotiated an extension to the end of the month before it will be considered in default on the loan.