Inmarsat's European Aviation Network (EAN) received approval this week from Belgian telecom authorities for its ground component service. Again. That's good news for the inflight connectivity provider as it works to secure the necessary regulatory approvals across Europe in advance of service launch, still expected later this year. It is a setback for Viasat, Eutelsat, and Panasonic Avionics as they fight the EAN deployment through legal and regulatory battles.
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.
The push for US airlines to better monetize their loyalty programs continues to grow. But don't expect it to happen any time soon. Airline executives continue to push back – strongly – against such suggestions from Wall Street analysts. The most recent such conversation, during American Airlines' Q2 2018 earnings call CEO Doug Parker was aggressive in explaining why his airline will not be considering such. The co-brand relationship with the credit card is simply too strong.
Inmarsat reported its first half financial results this morning in London with one surprising bit of data: The GX commercial aviation service finally started generating airtime revenue is Q2 '18, more than a year after entering service on some commercial aircraft.
A spike in aviation-related revenue is good news for Inmarsat but not all revenue is created equally. There's more to this story than just the raw numbers.
How much revenue does the American Airlines fleet contribute to Gogo? What will things look like in 2018 as 400ish planes leave? Here's a look at what I think might happen.
What good is having an inflight wifi connectivity product if no one is using it? Gogo sits flush with satellite capacity and is pushing to increase take rates (and revenue) up dramatically on its platform.
More passengers are using Gogo's service but that doesn't translate into greater profits. Costs are also up and consumers may find themselves soon paying more as well.