The Business of Passenger Experience
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.
Gogo revised its expectations for 2020 and beyond, announcing updated goals as the company continues its drive towards profitability. Alas, details on those revised targets will not be shared with investors. CEO Oakleigh Thorne shared that the new math takes into account "more realistic expectations" of satellite costs and the shift to the airline-directed model. Assuming the new numbers are part of the Q3 '18 numbers they should help the company significantly, though there are indications some parts of the operation could revert to higher costs. The inability for global revenue to keep pace with growth in North America is also concerning given the company's current backlog.
Etihad Airways wants to give passengers a bit more comfort on board. The new Etihad Economy Space offering delivers extra leg room for economy class passengers at a relatively low price. All ten of the A380s will carry the new product by December 2018.
Garuda Indonesia is the latest carrier to get online in the sky. The airline announced today that it will fly Inmarsat’s Global Xpress kit on its fleet, starting with the A330s early next year.
Brighter, more open aircraft boarding areas may soon see a new feature installed. Lufthansa Technik and LG Electronics are teaming up to delivery OLED digital billboards to the aero industry, increasing advertising opportunities on board.
Fiji Airways is just weeks away from delivery of the carrier's first Boeing 737 MAX aircraft. With that delivery the airline joins the ranks of carriers delivering wifi connectivity in the sky. The aircraft carries the necessary hardware for inflight connectivity on board. Official details on the vendor remain unclear but we have a pretty good idea what's under the hump.
Adding a new type to an airline’s fleet is interesting in its own right. China’s Juneyao Airlines added the 787-9 Dreamliner last week and it is more significant than most similar expansions, both for passengers and China’s aviation industry growth.
Global Eagle took Albatross One, its flying testbed, on a field trip to Canada last week and the results proved incredibly positive. The inflight connectivity provider partnered with satellite-operator Telesat to deliver data across the Phase 1 Low Earth Orbit (LEO) satellite and geostationary Anik F3 using a common on-board antenna from Qest and modem from Gilat. The test flight proved that transitions from the GEO satellite to LEO and back can work on the company's gimbal-mount Ka-band antenna solution. During inflight testing, the team successfully demonstrated industry-leading data upload speeds from the aircraft, engaged in uninterrupted video chatting and movie streaming, and experienced the lowest latency of any satellite connection to date.
The test flights are the latest step in Global Eagle's efforts to position itself as a technology leader in the inflight connectivity world. Company executives have talked up the new constellation since the test satellite launched at the beginning of 2018. During the recent APEX EXPO in Boston LEO connectivity was a frequent topic of conversation. For Alexis Steinman, SVP Aviation Solutions, there is no subtlety in the company's plans: "We are betting big on LEO." With this latest successful test expect that bet to continue to grow.
Eurowings passengers can now connect to the internet for free in flight. But can a free tease deliver the revenue boost desired? Or will passengers remain averse to paying for internet in the sky?
The first Delta Air Lines A220 flights are now loaded into the schedule and on sale for travelers. The carrier intends to base the fleet initially at New York City’s LaGuardia Airport and serve routes focused on business travelers, with Boston and Dallas-Fort Worth the first two destinations starting 31 January 2019. Over the summer of 2019 as the fleet grows the A220 will also serve Houston, Salt Lake City, Detroit, Minneapolis-St. Paul and JFK.
