Adding more than 100 Turkish Airlines planes to its inflight connectivity backlog is good news for Global Eagle. Perhaps more significant, however, is the potential for additional program growth that come from the partnerships it established to secure this Turkish Airlines deal.
Good news for Global Eagle: The company announced this morning that it has extended its liquidity by $61mm over the next 18 months. But there is almost certainly a little more to the story.
When one or two executives leave a company it doesn't usually make the news. When it is a handful all at once eyebrows start to raise. After last week's news of one such shake-up in the inflight entertainment and connectivity world, however, the company's CEO says this is simply business as usual, finishing up a restructuring started in 2018.
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.
Two stories should deliver a net boost for Global Eagle headed into Thursday's earnings release. They are not both good news (and one remains unconfirmed), but the positive outweighs the negative significantly.
Global Eagle is “back in the rapid innovation game.” That was the message delivered last month at Aircraft Interiors Expo (AIX) 2018 in Hamburg, Germany. And some of the IFE developments definitely fit that mold.
After taking nearly a year to unwind the complexity of its financials following a string of acquisitions Global Eagle is finally ready to move forward on executing its plan. Leadership and funding changes announced this week are a major step forward on that front.
Gogo is the first inflight connectivity provider to pass data on the SES-15 Ku-band satellite. That’s great news for passengers, and it should get even better soon as others join that party.
Thales is the latest IFE/C vendor to partner with Chinese conglomerate HNA Group to deliver entertainment and connectivity services on board. But will they really fly? Concerns about the financial stability of HNA raise significant concerns about the long-term viability of the offerings.
Brazil is quickly becoming a hot market for inflight connectivity. LATAM is the latest to make a move, announcing today that it will fit 100 of its Brazil-based A320 aircraft with Gogo’s 2Ku solution. Installations will begin in the first half of 2018 and complete in early 2019.