This year’s Labor Day Weekend holiday period is expected to break records for the number of people traveling across the USA by air. And a whole bunch of them will get free inflight wifi thanks to Gogo and T-Mobile. Every traveler on a domestic US flight equipped with the Gogo service will receive a free 30-minute smartphone session on Monday as part of the deal.
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Sky-high dreams or firmly grounded: The business of connected aircraft maintenance remains in question
“Inflight connectivity doesn’t just create revenue, it could save the airline industry US$15bn a year.”
That’s a bold claim from Inmarsat and the research it commissioned from the London School of Economics (LSE). Much of the savings comes from better weather forecasting and the associated effects: reducing delays and fuel burn. Part of the forecast savings comes from predictive maintenance opportunities, allowing the plane to track its own performance and use on-board connectivity solutions to report back to headquarters when operations are less than nominal. The so-called Internet of Things for Aviation (IoT/A) has long been held up as the financial savior of the connectivity platforms, delivering the necessary financial support to justify installations. What will it take to realize the $3-46bn in annual savings the research revealed? A lot of work, and it is unclear which connectivity vendors are truly committed to that effort.
Connecting another batch of MAX: flyDubai’s radomes spotted
FlyDubai's 737 MAX aircraft feature the carrier's newest interior (including lie-flat beds in business class). Alas, as delivered from Boeing the passenger experience of these planes was incomplete as they did not carry an inflight wifi service on board. Sharp eyes will note that some of the planes are finally sporting radomes. That's good news for passengers and for the vendor delivering the connectivity service on board.
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Viasat plans challenge to EAN’s Belgian approval
Viasat continues its legal battle against Inmarsat’s European Aviation Network. The company indicated it would challenge the ruling issued by Belgian authorities earlier this month approving EAN’s ground components complimentary service on the S-Band network.
Gogo 2Ku spotted on Cathay Pacific 777
Gogo 2Ku installations continue to spread globally. Cathay Pacific is the latest airline to be spotted with the radome atop its aircraft.
Growing against flat rate contracts: Global Eagle’s plan
Growth is all but assured in the inflight connectivity market. Global Eagle is among the operators seeking the upside potential in its its revenue base and margins. But the company takes a slightly different approach to generating service revenue compared to others.
Content is part of the plan. Premium services are part of the plan. Convergence of the entire passenger experience matters greatly. And Chief Commercial Officer Per Norén is confident that the approach can save the company money on the bandwidth side, deliver a better and more profitable offering for airlines and give passengers the content they really want.
Revenue per aircraft is flat right now, but the Norén has big ideas on how to change that. Everyone wins, assuming it all works.
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Counting connections and commitments
Connectivity installations slow slightly over the summer, allowing an opportunity to take a big picture look at the industry and where the various players sit in terms of connected aircraft and future commitments. Compared to a year ago some players have shifted positions, even as the total committed count increases. The latter is definitely good news for all involved while the former is better for some than others.
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Viasat 8: The Ocho!
It is just one small line inserted into today's Viasat earnings notes, "... total next-generation IFC system installations to around 200 aircraft across eight commercial airlines." The 200 number is nice, but the eight is more significant.
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American Airlines extends Viasat deal to A321neo fleet
American Airlines will take the Viasat Ka-band inflight connectivity solution on its A321neo fleet when deliveries begin in 2019. The 100-aircraft deal was secured in recent weeks and announced by Viasat as part of its quarterly earnings release Thursday afternoon.
An asterisk on Gogo’s improving revenue numbers
Gogo posted better than anticipated numbers for Q2 '18 this morning, giving the company's share price a nice boost in early morning trading, though it has since given back some of the gains. The business aviation segment continues to lead the company's fortunes but some glimmers of success in the commercial segments are showing, too. So long as American Airlines is excluded from all considerations.
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