The Business of Passenger Experience
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.
The push for US airlines to better monetize their loyalty programs continues to grow. But don't expect it to happen any time soon. Airline executives continue to push back – strongly – against such suggestions from Wall Street analysts. The most recent such conversation, during American Airlines' Q2 2018 earnings call CEO Doug Parker was aggressive in explaining why his airline will not be considering such. The co-brand relationship with the credit card is simply too strong.
Inmarsat reported its first half financial results this morning in London with one surprising bit of data: The GX commercial aviation service finally started generating airtime revenue is Q2 '18, more than a year after entering service on some commercial aircraft.
Just how many aircraft carry inflight connectivity hardware? And which kit?? A pair of announcements this week gives greater insight into which kit is where and how the market is shifting, rapidly in some cases. Not that installation number 1000 matters more than number 999, of course. Yet somehow it does. Just a little.
Gogo plans significant cost cuts as it seeks to shore up its financial position. Facing a financing crunch the company's "Gogo 2020" business plan unveiled this week will see hundreds of millions of dollars cut from cost side of the balance sheet as jobs and programs are dropped from the company.
The launch of inflight wifi connectivity on Spirit Airlines presents many questions about the business model associated with that deal. Earlier this month, on the sidelines of the IATA Annual General Meeting in Sydney, Dominique Giannoni, CEO of Thales InFlyt, spoke about the arrangement and why just focusing on the contract terms doesn't really answer the bigger questions around how the service will operate and prove profitable to both parties.
Partners are important. But Viasat is not deterred by its lack of partners when it comes to developing the global ViaSat-3 constellation of Ka-band satellite connectivity. Indeed, the wait while searching for a partner on one of the satellites may prove beneficial when it finally launches.
When senior airline executives are willing to trash their vendors in public that's usually bad news for everyone involved. Welcome to the inflight connectivity world, where airlines are almost as unhappy as the passengers struggling to stay online in the sky. Alas, only part of that frustration is grounded in reality.
As Alaska Airilnes shifts its aircraft to Gogo's 2Ku offering passengers will see increased bandwidth, hopefully driving an increase in the number online. But a change in the way the product is priced could throw a wrench in those plans.
