With the bulk of the global 737 MAX fleet grounded the impact to passengers is very real. Canceled flights, delays and rebookings will affect hundreds of thousands of travelers each day. Inflight connectivity providers will also be impacted as their systems are grounded.
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.
Another quarterly earnings report from Inmarsat and another bullish report on inflight connectivity revenue. The group reported IFC revenues more than doubled to $101.3m for the full year. As revenue and install count continues to grow Inmarsat is optimistic, though the underlying numbers suggest the potential remains unrealized.
Work as a senior executive in the inflight entertainment and connectivity business can be a fragile position. As the companies in the space continue to come up short on consistent and stable profits the likelihood of a sudden shift remains very real. Reports in to PaxEx.Aero suggest that just such a shift is underway at one of the leading providers in this segment.
Is there a secret to better financing of inflight connectivity solutions? Indonesia's Mahata Aero Technology (MAT) is the latest to take that plunge, with an arrangement to cover the costs for Garuda and Citilink. The deal relies on partnerships with suppliers Lufthansa Systems, Lufthansa Technik and Inmarsat, along with what MAT Executive Director Iwan Setiawan describes as "a unique business model" that is proving successful in its preliminary state.
Indonesian national carrier Garuda is expanding its inflight wifi commitment with Inmarsat’s GX Aviation solution. The move follows the selection earlier this year by Citilink, an LCC carrier in the Garuda Group, to install the same kit. The signed contract also quashes any hopes Global Eagle still had of resuscitating its deal with the carrier.
Just over two weeks after the first Citilink A320 entered the shop for wifi installation it is back in service. Aircraft PK-GQR operated a handful of flights on Wednesday with the Inmarsat GX kit installed.
The first Citilink Indonesia inflight wifi connectivity installation is underway. Work to add the Inmarsat GX Aviation kit to the aircraft began recently on the first of 50 A320s contracted to receive the system. The implementation is being overseen by Mahata Aero Teknologi (MAT), and Indonesian wireless technology provider.
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?!?)
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.