PaxEx.Aero

The Business of Passenger Experience

IFC

Tariffs, 737 MAX, satellite crash hit Astronics earnings

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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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PaxEx Update: 2 August 2019

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A new A321LR enters service for Aer Lingus, faster security screening for United and promises of faster infilght WiFi. Plus Hulu takes flight on Delta and more! Get all the details in this week’s PaxEx Update.

Inmarsat’s maturing IFC market

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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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Air France adds A220s, retires A380s

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Air France will add sixty A220-300 aircraft to its fleet from September 2021. The planes will replace the carrier’s aging A318 and A319 aircraft. The carrier also announced plans to fully retire its fleet of ten A380s by 2022.

Killing connectivity for Garuda, Citilink

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It was one of the faster installations and activations for a new inflight connectivity customer. In under a year Indonesia's Citilink went from agreement to contract to installation to activation of its onboard WiFi solution, powered by Inmarsat's GX Aviation and managed by Mahata Aero Teknologi (MAT). Now that deal – and the associated installations on Garuda and Sriwijaya – appears dead.

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Telesat scores major LEO commitment from Canadian government

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LEO constellations are going to help revolutionize inflight connectivity, but they’re also very expensive and aviation cannot support the industry alone. Telesat scored a major investment from the Canadian government this week that helps ensure its 298 satellites will take flight.

Concessions, not collapse

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When the government gets involved in any commercial transaction there are bound to be concerns for all parties involved. With two different UK agencies looking in to the proposed deal to take satellite operator Inmarsat private questions are sure to arise about the future of that deal. Fortunately, it appears that concessions and guarantees are in play rather than an outright collapse of the transaction.

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JetBlue takes a delay on A321neo deliveries, A320 retrofits

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The JetBlue A320 retrofit program is delayed. Again. But it is still expected to complete on time (a couple years later than initially planned), at the end of 2020. Blame Airbus this time around.

Global Eagle increases liquidity with debt restructuring

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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.