Was Viasat’s recent deal to secure $175mm in new capital just a matter of convenient timing? Or is there a specific plan for the cash? CEO Mark Dankberg got into some of the possibilities today, including potential inflight connectivity opportunities, while clearly leaving the door open for many more options to come.
inflight connectivity
Virgin Australia to ditch twin-aisle fleet, focus on domestic and regional service
As part of its recapitalization plan Virgin Australia intends to retire its long-haul aircraft. The carrier’s five 777s and six A330s will be removed from service as it invests “in the core Virgin Australia domestic and short-haul international operation.”
Astronics still sees opportunity in BizAv IFC market
Astronics is ready to move beyond the AeroSat antenna challenges of years past. In today’s quarterly earnings call CEO Peter Gundermann exuded confidence in the potential for the company’s latest partnership, with SES and Collins Aerospace, for a tail-mount solution to fly on larger biz jets.
Amazon commits $10 billion to Kuiper LEO constellation
What does it take to put a new low earth orbit (LEO) satellite constellation into service? The myriad technical challenges are not to be underestimated, of course, but a lot of it comes down to money. In the case of the Amazon Kupier project that’s a $10 billion commitment.
Gogo to trim headcount as recovery optimism weakens
Gogo is eliminating 143 fulltime positions, predominantly from the Company’s Commercial Aviation business. The move aims to “align the scale of its organization with current demand for aviation connectivity services” as the current industry downturn continues to impact its revenue, especially in the commercial aviation segment.
Connectivity: Splitsville
‘Tis the season for restructuring in the aviation world. And for one supplier a deal years in the making may finally be on the horizon.
American Airlines takes control with new WiFi portal launch
American Airlines completed its inflight connectivity systems upgrade last year and now is taking that more difficult step, harmonizing the login portal for its passengers. An updated, unified interface deploys on the Viasat and Gogo-fitted aircraft this month.
Deutsche Telekom expands free GX Aviation wifi offering on Lufthansa Group flights
Inmarsat, Deutsche Telekom, and the Lufthansa Group are extending their complimentary inflight wifi access plan. First launched in July 2019, the companies increased the number of covered customers in April 2020 and intend to keep the program alive at least through December 2021.
Global Eagle refocuses on long-term outlook
There is an air of optimism, of relief emanating from the C-Suite at Global Eagle this week. And, to be sure, a realization that massive amounts of work remain for the company to truly succeed, but a conversation with CEO Josh Marks and President Per Noren suggests massive optimism now that the company’s interest payment burdens halve thanks to an agreement to convert debt to equity through the Chapter 11 bankruptcy filing made on Wednesday.
Global Eagle secures $80 million DIP financing in Chapter 11 bankruptcy filing
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.