The Business of Passenger Experience
Panasonic Avionics Corporation (PAC) and Inmarsat are poised to reshape the inflight connectivity world with a landmark deal. The ten year strategic collaboration project will see PAC sell Inmarsat's Ka-band GX connectivity solution while Inmarsat bundles some of PAC's data analytics and services offerings into its sales efforts. Is this the consolidation the market so desperately craves?
Work on the first Spirit Airlines aircraft to receive its Thales-supplied inflight wifi connectivity hardware is underway. Installation efforts started this week at an MRO with Thales overseeing the work.
Chalk up another split fleet for inflight connectivity. The latest intelligence in to PaxEx.Aero suggests another A350 operator will add a new vendor to its IFC roster.
Is Gogo worth more split in half rather than as a single company? Since the management transition earlier this year that idea has been floated more than once. CEO Oakleigh Thorne suggested that either the Business or Commercial Aviation halves should be worth more than the current market cap. He's also suggested that splitting the company along those lines would be a relatively easy transaction to pull off, with BizAv owning the ATG network and Commercial the satellite services. With an impending deadline to refinance the company's debt it seems like such a move could solve a lot of the problems. We know that various suitors have put offers on the table for all or part of the company and that those are being evaluated by the Board of Directors. Here's how one of them could play out.
The first Virgin Atlantic A350-1000 is starting to come together in Toulouse, France. Parts for MSN 274 are arriving at the final assembly line and there's an interesting surprise atop the aft fuselage section: A radome.
FlyDubai's 737 MAX aircraft feature the carrier's newest interior (including lie-flat beds in business class). Alas, as delivered from Boeing the passenger experience of these planes was incomplete as they did not carry an inflight wifi service on board. Sharp eyes will note that some of the planes are finally sporting radomes. That's good news for passengers and for the vendor delivering the connectivity service on board.
Growth is all but assured in the inflight connectivity market. Global Eagle is among the operators seeking the upside potential in its its revenue base and margins. But the company takes a slightly different approach to generating service revenue compared to others.
Content is part of the plan. Premium services are part of the plan. Convergence of the entire passenger experience matters greatly. And Chief Commercial Officer Per Norén is confident that the approach can save the company money on the bandwidth side, deliver a better and more profitable offering for airlines and give passengers the content they really want.
Revenue per aircraft is flat right now, but the Norén has big ideas on how to change that. Everyone wins, assuming it all works.
Inmarsat's European Aviation Network (EAN) received approval this week from Belgian telecom authorities for its ground component service. Again. That's good news for the inflight connectivity provider as it works to secure the necessary regulatory approvals across Europe in advance of service launch, still expected later this year. It is a setback for Viasat, Eutelsat, and Panasonic Avionics as they fight the EAN deployment through legal and regulatory battles.
It is just one small line inserted into today's Viasat earnings notes, "... total next-generation IFC system installations to around 200 aircraft across eight commercial airlines." The 200 number is nice, but the eight is more significant.
Gogo posted better than anticipated numbers for Q2 '18 this morning, giving the company's share price a nice boost in early morning trading, though it has since given back some of the gains. The business aviation segment continues to lead the company's fortunes but some glimmers of success in the commercial segments are showing, too. So long as American Airlines is excluded from all considerations.
