Southwest Airlines is inching closer to approval for service to Hawaii. But don’t start planning a trip just yet. The carrier still needs to pass a few more hurdles before it can schedule service.
Southwest Airlines
PaxEx Premium: Challenged to the core
It was supposed to be a massive shift of market share in the inflight connectivity world. Former Panasonic Avionics executive David Bruner claimed significant numbers of Southwest Airlines aircraft would see the Global Eagle kit uninstalled, replaced with PAC's solution, along with the ongoing line-fit deliveries. Instead Global Eagle is replacing PAC on the small number of 737s that were installed. And that might not even be the largest challenge Panasonic faces today.
In the couple months since PAC's partnership announcement with Inmarsat the company has pushed a two pronged approach to its future business. One one side sits the core competencies of its inflight entertainment business. On the other, driven by many of the new faces in the company's leadership, comes a shift towards a services operation. Both sides face challenges.
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PaxEx Premium: Global Eagle boosts aero revenue, aircraft backlog
Global Eagle posted strong revenue numbers in Q3, with its content and aviation connectivity segments showing particular strength. The company also announced a couple "take away" deals that see it grabbing business from competitors. Those moves come at a cost, however, especially on the connectivity side. The increased revenue from these deals over the long term is welcome but a short term cash crunch could be bad for business.
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Who LUVs free movies in flight??
Southwest Airlines dropped a fee this week. The carrier long offered movies on its flights, streamed to a passenger device, for $5. That content is now free. The new pricing took effect today and is rolling out across the fleet throughout the week.
JetBlue confirms 2019 route changes
Building on yesterday’s report that JetBlue plans “aggressive” changes to its route network details the changes are now public. One new international destination joins the route map and several routes see increased frequencies. The carrier will also close three stations and shift one to seasonal service. A handful of routes will also be shuttered. This round of changes will begin to show in JetBlue’s schedule effective in January 2019.
JetBlue goes Basic, plans fare families revamp
Is there such a thing as humanity in the Basic Economy world? JetBlue is planning a new suite of fare families to include a more basic option, while also maybe fixing the more expensive options, too.
Another tiny lavatory preps for flight on American Airlines
Sick and tired of tiny airplane toilets? The news out of Aircraft Interiors Expo this week in Boston (collocated with APEX EXPO) probably won’t improve that feeling. Diehl Aerospace showed off its 31″ lavatory for the A320 family of aircraft, soon to be retrofit on American Airlines airplanes.
Gogo TV live on 550+ planes; more to come
An additional 550+ aircraft now have live television on board. The Gogo TV product activated across three airlines in recent weeks, quickly adding live content to the company’s offerings. And more planes are coming online soon.
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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