For a company that is now mostly known for its Ku-band inflight connectivity offering the idea of bringing Ka-band services online in parallel may appear somewhat incongruous. But for Gogo, the news out this morning that it is pitching Ka-band solutions to potential customers is, according to CEO Oakleigh Thorne, more about holding fast to its plans.
earnings call
Norwegian scores a funding boost from China
Norwegian found $1.5bn to help cover short-term aircraft costs thanks to a Chinese partner. The deal dramatically reduces CapEx for the next four years, an important win as the company seeks to shore up its books.
United plans more seats per departure with fleet renewal
United Airlines wants to get bigger. The carrier has plans to expand its fleet in the coming years but it also wants to get more seats in the sky per flight. And it wants to accomplish that without adding more seats to the existing aircraft. It is a somewhat complicated challenge, but if things go right United expects 3% more seats per departure on average a year from now.
Gogo closes on $30mm line of credit
Inflight connectivity provider Gogo announced the closing on its previously announced $30 million revolving line of credit today. The move increases the company’s liquidity to approximately $100 million and does so without adverse impact to the stake of its current shareholders.
Tariffs, 737 MAX, satellite crash hit Astronics earnings
How many different ways can one company get beat up in the inflight entertainment and connectivity market? Astronics faces headwinds in its Aerospace market on three fronts. The 737 MAX grounding has costs on both new production and retrofit efforts, while the loss of Intelsat 29E grounded a connectivity program indefinitely. Add in tariffs related to China suppliers that the company is paying and the numbers are going to be rough in that segment for the foreseeable future.
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JetBlue eyes a more mature TrueBlue loyalty program
The co-brand revenue is great and JetBlue intends to continue expanding that stream. But the carrier also knows its TureBlue loyalty program needs a little more to become a mature offering for consumers. That should be good news for travelers, assuming the carrier can execute.
Inmarsat’s maturing IFC market
As inflight connectivity products mature and consumers become familiar with the offerings the expectation from suppliers is that they will pay more for the services more often. Just how long that maturation process takes remains an interesting question, however. The latest report from Inmarsat adds more data to consider on this front, but few solid answers.
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A pair of delays hit Hawaiian’s growth plans
The most punctual airline in the United States is facing a pair of notable delays affecting the company’s revenue. Hawaiian Airlines detailed the impact of aircraft delivery issues and new fare products that did not arrive on time.
Record ancillary revenues won’t derail Basic Economy expansion at JetBlue
JetBlue realized $33 per passenger in ancillary revenue last quarter, an all-time record for the carrier. But the company is not resting on that accomplishment. Rather, JetBlue sees significant opportunities for further growth with more unbundling (and rebundling) of fares.
Hawaii, Cozumel get the LUV; Newark doesn’t
The 737 MAX grounding will push Southwest Airlines out of Newark. The carrier needs its aircraft in more profitable markets as it shrinks its operations this year.