Inflight connectivity provider Gogo delivered a strong quarter in Q1 2019, topping analyst earnings estimates. The numbers also show a few areas that remain critical for long-term success and are not necessarily moving in the right direction as quickly as could be expected. The company's "growth engine" of global carriers in particular raises questions, some of which the company declined to answer, about where the improvements will really occur.
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PaxEx Premium: UON updates offerings, looks to expand install base
As the newest supplier in the inflight connectivity market Saudi Arabia's UON by Taqnia Space faces plenty of challenges. It also is arguably the most nimble and adaptable player in the game, with plenty of opportunity to tailor its offerings and business model to airline demands as it looks to grow. During a conversation at the Aircraft Interiors Expo in Hamburg earlier this month CEO Abdullah Alosaimi offered up some insight on how the company intends to do exactly that.
PaxEx Premium: Mitigating the loss of Intelsat 29e for inflight connectivity
Last week's anomaly on the Intelsat 29e satellite took the Ku-band system temporarily offline. Further details now suggest that a recovery is increasingly unlikely. While that has a short-term impact on the inflight connectivity market a deeper review suggests that the overall exposure could be mitigated relatively quickly.
PaxEx Premium: Finding future financing
Epic Troubles: Satellite failure slashes inflight wifi capacity
What happens when gigabits of capacity goes offline? Passengers and inflight connectivity providers alike are about to find out. Intelsat 29e, the first of the Epic Ku-band High Throughput Satellites, suffered a fuel leak on 7 April 2019, followed by a second issue on 9 April. The satellite is in "safe mode" meaning all customer-facing services are disabled as the operator seeks to address the problems. This represents a significant hit to Ku-band capacity over the Americas and the North Atlantic Ocean.
PaxEx Premium: India inflight internet intentions
Where and when will inflight internet finally take flight in India. A pair of players – Inmarsat and Global Eagle – are leading the charge to deliver connected aircraft in the region. At the Aircraft Interiors Expo in Hamburg last week both vendors provided updates on their efforts, with neither appearing likely to fly in 2019.
PaxEx Premium: A pleasant surprisESA
The only official announcement around electronically steered antennae (ESA) for commercial aircraft this week at Aircraft Interiors Expo in Hamburg came from Gogo. And it probably was the least significant ESA story from the show. Instead, a surprise from a different supplier stole the spotlight.
PaxEx Premium: Inmarsat set to go private, change very little
Inmarsat's financial future appears secured. A consortium of investors is poised to invest $3.4bn in the company, taking it private. The price tag represents a 45% premium from the trading rate on the day prior to speculation about the deal becoming public and 27% to the price when the official offer was published. Inmarsat's Board of Directors unanimously recommends the deal and committed their respective shares to vote in favor. The investment group is operating under the name Triton Bidco and is backed by Apax Funds, Warburg Pincus Funds, the Canada Pension Plan and the Ontario Teachers' Pension Plan.
PaxEx Premium: Inmarsat’s IFC revenues continue inconsistent growth
Another quarterly earnings report from Inmarsat and another bullish report on inflight connectivity revenue. The group reported IFC revenues more than doubled to $101.3m for the full year. As revenue and install count continues to grow Inmarsat is optimistic, though the underlying numbers suggest the potential remains unrealized.
PaxEx Premium: Finishing the job
When one or two executives leave a company it doesn't usually make the news. When it is a handful all at once eyebrows start to raise. After last week's news of one such shake-up in the inflight entertainment and connectivity world, however, the company's CEO says this is simply business as usual, finishing up a restructuring started in 2018.