Global Eagle will restructure and recapitalize under Chapter 11 of the US Bankruptcy code. Substantially all of the company’s assets are to be acquired for $675 million, reducing total debt by approximately $475 million. The deal also includes $80 million in fresh debtor-in-possession financing to ride out the current downturn.
Global Eagle Entertainment
Cutting connections: Reviewing the connected aircraft retirements
Hundreds of aircraft rapidly retired from service. Hundreds more shifted into limbo, unclear of when they might fly again. The news no longer surprises, though some of the retirements bring about a sense of loss. For inflight connectivity vendors the impact is more than a sense of loss, however, as it maps to real revenue shortfalls with the aircraft removed from service.
Time is running out for Global Eagle’s financial restructuring
Global Eagle bought itself a few extra weeks. Literally. The company missed an $11 million interest payment on 9 July but negotiated an extension to the end of the month before it will be considered in default on the loan.
Global Eagle’s cash crunch
The numbers for Global Eagle’s Q1 are not good. And with a narrow margin of liquidity before it is considered in default on its debt, the timing is tight.
Global Eagle faces additional financial challenges
With the deadline for filing its quarterly financials come and gone Global Eagle faces a number of challenges. Global Eagle now anticipates filing its earnings no later than 6 July 2020. And the contents of that filing are not expected to paint a pretty picture.
COVID crushing inflight connectivity: Part 2
Airlines have plenty of reasons to be concerned as the cashflow crunch threatens their survival. So too, however, do the many smaller suppliers that deliver services to those airlines. What was mild trepidation at the beginning of the year, generally tied to the 737 MAX grounding is now, in some cases, a full-on threat to the survival of these businesses. And, unlike the airlines, these suppliers generally do not have the luxury of bailout funding from the federal government.
In part two of this report we explore the impact on Viasat, Thales, Inmarsat and Panasonic Avionics.
COVID crushing inflight connectivity: Part 1
This was supposed to be a year of recovery and free cash flow and all sorts of other good news for an industry that spent the better part of the last decade hemmorhaging cash in search of market share. Turns out the global health pandemic cares not for borders nor those plans. Welcome to part one of a deep dive into the inflight connectivity world and the suppliers affected by this recent turn.
Global Eagle signs with Turkish Airlines for inflight connectivity
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.
New challengers at every level: PaxEx Update 2019-08-30
New cabins on the horizon for economy and business class, short-haul and long; might travel get more comfortable rather than less? Plus some good news for travelers looking to get online in the sky or earn free travel with their points.
Another regulatory hurdle cleared for India’s inflight wifi market
Two weeks from now it will be permissible to use WiFi enabled devices on board aircraft in India, assuming the pilot agrees. But that doesn’t mean the systems will actually be available to use.