Was Viasat’s recent deal to secure $175mm in new capital just a matter of convenient timing? Or is there a specific plan for the cash? CEO Mark Dankberg got into some of the possibilities today, including potential inflight connectivity opportunities, while clearly leaving the door open for many more options to come.
What does it take to put a new low earth orbit (LEO) satellite constellation into service? The myriad technical challenges are not to be underestimated, of course, but a lot of it comes down to money. In the case of the Amazon Kupier project that’s a $10 billion commitment.
Gogo is eliminating 143 fulltime positions, predominantly from the Company’s Commercial Aviation business. The move aims to “align the scale of its organization with current demand for aviation connectivity services” as the current industry downturn continues to impact its revenue, especially in the commercial aviation segment.
‘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.
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.
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.
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.
Gogo faces new challenges to some of its government contracts as the Feds look to push out any companies using technology from a handful of Chinese suppliers.
The numbers for Global Eagle’s Q1 are not good. And with a narrow margin of liquidity before it is considered in default on its debt, the timing is tight.
With the deadline for filing its quarterly financials come and gone Global Eagle faces a number of challenges. Global Eagle now anticipates filing its earnings no later than 6 July 2020. And the contents of that filing are not expected to paint a pretty picture.