The Business of Passenger Experience
Gogo's operational structure is set to change. CEO Oakleigh Thorne has long hinted at adjustments he wants to make. The shifts were previously associated with discussions around potential change of ownership or debt refinancing. While those options remain on the table the moves will be made now, PaxEx.Aero has learned. Company employees were informed of the changes this week.
After nearly three billion dollars invested and eight successful launch missions the Iridium NEXT constellation is nearly complete. In just a couple weeks the final swaps will take place and the full complement of 66 NEXT satellites will be online. For Iridium the milestone brings a dramatic shift in business plans and economics. CEO Matt Desch is clear that reducing CapEx is a key near-term goal and that the company will remain focused on its niche markets, "If we can offer that service at 22-100kbps with a very small antenna that can be installed into a small drone or an automobile or a sensor in the ocean, that will expand the market tremendously. That is not a market that anyone is talking
about. We believe Iridium NEXT and Certus is best positioned to deliver on that." But he also makes clear that neither of those plans is truly absolute. Expect to see Iridium "bleed into some things" that don't truly fit the mold. Inflight services is one vertical where Certus will likely disrupt the status quo.
Antenna manufacturer ThinKom confirmed a second STC program currently active for its ThinAir Ka2517 kit. Although the company declined to provide any further details on which inflight connectivity provider or aircraft type is involved, some strong indicators are present, giving PaxEx.Aero confidence in naming a likely first buyer of the product. The A320 STC program...
With billions of dollars in contracts at stake perhaps it makes sense that Thales would seek extra help in securing new deals. That it stands accused of failing to pay its partner for that help is less good. That it now also likely faces scrutiny from US and international regulators related to suspicious payment schemes and efforts to influence leaders of foreign airlines is even worse. Welcome to the fun and exciting world of supplier deals in the Middle East.
The on again, off again drama of Chinese telecom manufacturer ZTE flared up again this week. Reports from the White House suggest that Huawei and ZTE could be the target of a new Executive Order banning the sale of systems from those companies in the United States. It would be invoked under the International Emergency Economic Powers Act, allowing the president to regulate commerce in response to a national emergency. And it could significantly impact the future of Gogo's Air-to-Ground data network, especially the ATG-NG development.
It launched as Gogo Vision Touch. Delta Air Lines would be the initial customer but plans were in place to expand the offering to other airlines. Those plans still exist in a roundabout way, but it no longer appears that Gogo is involved in the product as Delta carries this wireless IFE solution forward.
The paperwork is finally submitted: India is ready to get online in the sky. The Ministry of Communications issued the Flight and Maritime Connectivity Rules, 2018 in an official filing on 14 December 2018, codifying the rules around delivery of mobile internet services on aircraft and ships. With the new rules defined service providers and airlines can finally move forward with fitting the planes. So, who will be first??
Can a massive airline deliver disruption in the inflight entertainment world? Delta Air Lines hopes the answer is yes as its Delta Flight Products (DFP) group formally launches its wireless IFE solution. Can a massive airline deliver disruption in the inflight entertainment world? Delta Air Lines hopes the answer is yes as its Delta Flight Products (DFP) group formally launches its wireless IFE solution. That's bad news for pretty much every other vendor in the inflight entertainment market today.
Uncertainty around the future of Avianca Brasil is growing as the company faces financial turmoil. Citing an inability to strike a "friendly agreement" for renegotiating aircraft leases the carrier sought protection under Brazilian bankruptcy laws this week. The move comes on the heels of lessors seeking the return of 11 aircraft for non-payment. The potential loss of aircraft is bad for the company and for its passengers, of course. It could also see a long-stalled inflight connectivity deployment finally terminated.
It was supposed to be a massive shift of market share in the inflight connectivity world. Former Panasonic Avionics executive David Bruner claimed significant numbers of Southwest Airlines aircraft would see the Global Eagle kit uninstalled, replaced with PAC's solution, along with the ongoing line-fit deliveries. Instead Global Eagle is replacing PAC on the small number of 737s that were installed. And that might not even be the largest challenge Panasonic faces today.
In the couple months since PAC's partnership announcement with Inmarsat the company has pushed a two pronged approach to its future business. One one side sits the core competencies of its inflight entertainment business. On the other, driven by many of the new faces in the company's leadership, comes a shift towards a services operation. Both sides face challenges.
