India is one of the fastest growing aviation markets in the world and, somewhat surprisingly, one of the least connected in flight. That will soon change, however, thanks to the recent publication of new government regulations. Indian aviation is about to get online in a big way.
ATG-NG
PaxEx Premium: SmartSky’s $104mm network push
Fresh off the announcement of its first commercial airline customer, upstart inflight connectivity provider SmartSky secured additional funding to complete its nationwide network deployment. The company announced a $104mm investment, bringing the total investment for the company to nearly $350 million.
JetSuiteX going online with SmartSky wifi
JetSuiteX sees spectacular passenger satisfaction scores, but one small gap in the offering: Inflight wifi connectivity is not available on the carrier’s Embraer 135 fleet. That will change in Q4 2019 as the company rolls out the SmartSky ATG connectivity solution across its aircraft.
PaxEx Premium: Iridium sees a shift with NEXT constellation completion
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.
PaxEx Premium: More ZTE headaches for ATG connectivity
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.
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.
An asterisk on Gogo’s improving revenue numbers
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.
Gogo 2020 program aims for massive cost cuts
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.
New direction, new challenges for Gogo: Q1 18 numbers
Gogo management shakeup, part 2
Following the unexpected transition to a new CEO further management shakeup is hardly unexpected. Gogo took that step this week, announcing three new senior leadership positions in the company.