Commercial, Connectivity

Inmarsat GX Aviation Update Shows Results Despite Lagging Cabin Contracts

By Juliet Van Wagenen | August 5, 2016
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Connected aircraft
Connected aircraft. Photo: Inmarsat

[Avionics Today 08-05-2016] Inmarsat provided a half-year update on Global Xpress Aviation, its high-speed aviation broadband service for In-Flight Connectivity (IFC). During the year, it’s aviation sector began demonstration flights, enabling airlines to see GX deliver high bandwidth in-flight connectivity to the cabin. The company says it continues to progress cabin connectivity deals with major airlines.

“In Aviation, whilst closing cabin connectivity deals is taking longer than we expected, we have continued to make further progress, competing strongly in ongoing airline tenders for passenger connectivity services and the build out of our European Aviation Network is running to plan. We are currently conducting a worldwide live demonstration of our GX Aviation services to major airlines, which has been extremely well-received. I therefore continue to be confident in the long term growth prospects for the group,” said Rupert Pearce, Inmarsat’s CEO.

“Nevertheless, our markets continue to be challenging and the outlook is becoming much harder to call as the macro economic environment worsens, new satellite capacity arrives driving prices lower, our new GX products launch and the Aviation passenger connectivity market becomes established,” Pearce added.

In the second quarter 2016, the company’s aviation business saw an 8.4 percent bump in revenue, up $2.6 million to $33.4 million. With most activities denominated in U.S. dollars and a business that is well diversified across markets and geographies, the U.K.-company believes it is relatively well placed to withstand Brexit related market challenges.

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