A comment attributed to a UK-focused manager for China Southern touched off a flurry of potential outcomes regarding the future of the 737 MAX. Did the carrier decide to wipe its order book clean of the type?
China
American gives up on China – Chicago connections
Just over a year after admitting publicly that the routes “often don’t earn enough cash to cover the price of fuel” American Airlines is officially surrendering its route authorities from Chicago-O’Hare to Beijing and Shanghai. Both Delta and United figure to gain significantly as a result.
TravelSky plans rich content distribution with ATPCO’s Routehappy data
TravelSky is the latest airfare distribution provider to sign on for rich content from ATPCO’s Routehappy offerings. The move will add hundreds of millions of customers to the enhanced search results solutions.
Viasat’s inflection point
Massive expansion costs are set to give way to recurring revenue growth. That is the message Viasat delivered as it issued is most recent earnings numbers this week. Even as the company pushes forward with the build-out of its new ViaSat-3 constellation with dramatically more bandwidth and geographic coverage, it hopes to convert the existing capacity into new deals and new subscribers, with a significant push into new inflight connectivity markets, among other areas.
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Considering Gogo’s ATG-NG play
The on again, off again progress on an upgraded terrestrial network for inflight connectivity provider Gogo appear to be back in motion. In the company's most recent earnings call CEO Oakleigh Thorne indicated that the company is "particularly excited by some of the plans we’re developing for our next-gen network," though he stopped short of delivering too much in the way of additional details. Hardware supplier ZTE is out, thanks to questions about the long-term viability of growing the network with a Chinese vendor in the mix. But the program is very much alive, despite skepticism sown in Thorne's early days at the helm.
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Viasat, China Satcom partner for Ka-band connectivity over China
More inflight connectivity opportunities are opening up in China. Viasat is the latest provider to make a move, inking a deal this week with China Satcom to partner on efforts to grow the market and connect planes in the region. The partnership combines Viasat’s on-board experience with China Satcom’s business license, satellites and access to the domestic market.
Some 737 MAX services grounded following Ethiopian crash
The Boeing 737 MAX suffered its second catastrophic accident in five months this morning. The type is now grounded in two countries as a result.
Haggling for Haneda, Clashing over China
Drama is unfolding in the battle for highly coveted route authorities. Haneda is, in theory, the focus but the fight is spilling over to China as well.
China Southern quits SkyTeam, seeks stronger partnerships
SkyTeam lost its largest mainland China airline this week. China Southern announced it will quit the alliance in 2019. The non-renewal of the membership contract will see the carrier transition out of its alliance relationships in the coming year. This is not a hard stop of relations; rather, the changes are likely to roll out over time. It is also not a surprise.
PaxEx Premium: Global Eagle boosts aero revenue, aircraft backlog
Global Eagle posted strong revenue numbers in Q3, with its content and aviation connectivity segments showing particular strength. The company also announced a couple "take away" deals that see it grabbing business from competitors. Those moves come at a cost, however, especially on the connectivity side. The increased revenue from these deals over the long term is welcome but a short term cash crunch could be bad for business.
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