Maybe it has never truly been cheap for passengers, but airlines historically took advantage of great deals from suppliers to secure inflight wifi connectivity solutions relatively inexpensively. As those vendors now seek financial stability more than market share a shift is underway. Is the era of cheap wifi over? (And did it ever really exist?!?)
2Ku
Gogo’s strong Q3 offset by global ARPA concerns
Gogo revised its expectations for 2020 and beyond, announcing updated goals as the company continues its drive towards profitability. Alas, details on those revised targets will not be shared with investors. CEO Oakleigh Thorne shared that the new math takes into account "more realistic expectations" of satellite costs and the shift to the airline-directed model. Assuming the new numbers are part of the Q3 '18 numbers they should help the company significantly, though there are indications some parts of the operation could revert to higher costs. The inability for global revenue to keep pace with growth in North America is also concerning given the company's current backlog.
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Gogo, GOL partner on connected flight deck solutions
GOL Linhas Aereas inked a deal to install Gogo’s Aircraft Data Service, Wireless Quick Access Recorder and Automated Turbulence Reporting on board across its fleet. The Brazilian carrier, already a 2Ku customer, becomes the launch customer for these platforms. The partnership should improve the airline’s operational efficiency while also helping Gogo expand into the connected airframe market.
PaxEx Premium: A LEO milestone for Global Eagle, Telesat
Global Eagle took Albatross One, its flying testbed, on a field trip to Canada last week and the results proved incredibly positive. The inflight connectivity provider partnered with satellite-operator Telesat to deliver data across the Phase 1 Low Earth Orbit (LEO) satellite and geostationary Anik F3 using a common on-board antenna from Qest and modem from Gilat. The test flight proved that transitions from the GEO satellite to LEO and back can work on the company's gimbal-mount Ka-band antenna solution. During inflight testing, the team successfully demonstrated industry-leading data upload speeds from the aircraft, engaged in uninterrupted video chatting and movie streaming, and experienced the lowest latency of any satellite connection to date.
The test flights are the latest step in Global Eagle's efforts to position itself as a technology leader in the inflight connectivity world. Company executives have talked up the new constellation since the test satellite launched at the beginning of 2018. During the recent APEX EXPO in Boston LEO connectivity was a frequent topic of conversation. For Alexis Steinman, SVP Aviation Solutions, there is no subtlety in the company's plans: "We are betting big on LEO." With this latest successful test expect that bet to continue to grow.
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PaxEx Premium: Predicting a new antenna in flight
As the new Thales/Spirit Airlines Ka-band inflight wifi connectivity solution inches closer to flight testing it appears necessary to dispel one rumor about timing and opine on a very different one about the antenna technology that will be used on board.
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PaxEx Premium: LEO connectivity testing reaches new heights
Low-earth orbit (LEO) satellite constellations promise higher capacity and lower latency for connections. They also bring significant challenges, mostly owing to far more frequent satellite switching to maintain a connection. Add in an airplane moving though the sky and the complexity increases further. Multiple vendors are now moving through the testing process, with plans to deliver functional solutions as early as 2019, well ahead of the satellite constellations being ready for such connections.
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Global Eagle confirmed as Air France short haul connectivity provider
It was one of the worst kept secrets in the inflight connectivity world. Now it is no longer a secret. Air France finally confirmed that its single-aisle fleet will carry the Global Eagle Ku-band satellite system for its on board wifi service. The service will operate in partnership with French telecom carrier Orange.
Air France Connect brings inflight wifi live on board
Air France Connect, the company’s inflight wifi connectivity service, is officially online. After months of testing the Gogo 2Ku kit is now available to passengers on a Boeing 777 and Airbus A330 aircraft. Air France expects to have 22 wide-body planes installed and active by the end of 2018 and the full fleet online by the end of 2020.
PaxEx Premium: Another connectivity split fleet
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.
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Is it time for Gogo to split?
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.
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