GOGO and INTELSAT
Gogo Inc. announced it has entered into a definitive agreement to sell its Commercial Aviation (CA) business to Intelsat S.A. (“Intelsat”) for $400 million in cash, subject to customary adjustments. The Gogo Board of Directors has approved the transaction. Intelsat expects to finance the transaction utilizing cash on hand and borrowings under its $1 billion debtor-in-possession credit facility and has obtained support from key economic stakeholders, as well as approval from the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division, to complete the acquisition. The transaction, which is expected to close before the end of the first quarter 2021, remains subject to customary closing conditions and certain regulatory approvals.
“Following a competitive strategic review process, we’re confident this transaction unlocks the full value of the CA business for shareholders,” said Oakleigh Thorne, Gogo’s President and CEO. “Combining CA, the leading inflight connectivity provider, with Intelsat, the world’s largest global satellite operator, will create the leading vertically-integrated IFC business in the world, with the additional resources and scale to support continued growth and innovation as demand for commercial air travel recovers.”
“With shared values and a clear commitment to working with the CA team to grow the business, we are confident Intelsat is the right partner. I am extremely grateful for the CA team’s efforts – particularly over the past few months. Today’s announcement is a testament to the strength of the business they have built,” Thorne said.
Gogo, which will remain a public company, will use the proceeds from the transaction to improve its net debt position and continue to invest in growth opportunities such as Gogo 5G. With greater financial flexibility, including a lower cost of capital over time, the new Gogo will be better positioned to enhance the scale and profitability of its Business Aviation (BA) segment, which is uniquely well-positioned in an attractive and under-penetrated market.
“This transaction creates a stronger and more focused Gogo, with the singular strategic imperative of serving the business aviation market with the best inflight connectivity and entertainment products in the world,” Thorne said. “The BA market continues its sharp recovery and strong demand growth trajectory, and our BA segment is exceptionally well-positioned to drive long-term value creation in that industry.”
As part of the transaction, Gogo will enter into a 10-year network services agreement under which Intelsat will have exclusive access to Gogo ATG services for the CA market in North America, subject to minimum revenue guarantees of $177.5 million.
Intelsat intends to operate the CA business as an independent business unit, led by current CA President John Wade. The CA business will remain based in Chicago.
FLYING COLOURS
Flying Colours Corp., the North America-headquartered refurbishment, completions and MRO specialist, has redelivered a third modified Bombardier Challenger 850 to an undisclosed Fortune 500 company. The aircraft was originally completed from green by Flying Colours in an executive VIP layout and returned to Flying Colours for reconfiguration as a 19-passenger corporate shuttle this spring.
HAMBURG AVIATION
In 2021, in view of the global Covid-19 pandemic and its impact on global air travel, there will be two special categories for the Crystal Cabin Award, the leading global accolade for innovations in the field of aircraft cabin and on-board products: “Clean & Safe Air Travel” and the “Judges‘ Choice Award”.
The two categories were developed by a task force of the Crystal Cabin Award Association, which is led by Hamburg Aviation, in collaboration with members of the expert jury, spread over four continents. “Clean & Safe Air Travel” is targeted at innovations for aircraft in the areas of health, hygiene, safety, and cleanliness. The “Judges’ Choice Award” has been designed for entries that would otherwise have been submitted in one of the eight regular categories, including Cabin Systems and In-Flight Entertainment and Connectivity. The two special categories will also be open for student submissions
Award ceremony in April 2021 in Hamburg
Winners of these special categories shall, as always for the Crystal Cabin Award, be chosen by an international jury of almost 30 experts in parallel with the Aircraft Interiors Expo in Hamburg in April 2021. At the same time, winners of the coveted trophies will also be selected from the existing finalists in the eight main categories. The current Crystal Cabin Award round was temporarily suspended in March this year due to the Covid-19 pandemic.
Entries for the two special categories may be lodged online at www.crystal-cabin-award.com from 1 October.
New format: “Crystal Cabin meets…” podcast launched
There have already been successful solutions for on-board hygiene among the finalists and winners of the previous 14 years of the Crystal Cabin Award. Now, a new podcast series has been launched, “Crystal Cabin meets…”, available at www.crystal-cabin-award.com, with experts from the aviation industry and former entrants talking about their experiences over recent months and what they expect the future to bring.
First up are the companies Dimer and Honeywell. The former was a finalist in 2017 with its “GermFalcon” concept, a cabin trolley to be pushed through the aircraft during ground time, killing bacteria with UV light. The Covid-19 pandemic has seen a leap in interest in the product, and it is now being marketed as Honeywell UV Cabin System as part of a strategic partnership, with real-life airline tests already underway. The “Crystal Cabin meets…” podcast can be heard on the official website and on important podcast platforms such as Apple Podcasts and Spotify.
BOEING
Boeing donated $10.6 million to a group of 20 nonprofits working to address racial equity and social justice in the United States. The funding package is part of the company’s previously announced multi-year commitment that includes a mix of local and national-level grants aimed at increasing the number of minority and underserved students pursuing science, technology, engineering and math (STEM) education and diversifying the aerospace talent pipeline. Grant money also will fund programs that work to address criminal justice reform and health care gaps in underserved and minority communities.
“At Boeing, we acknowledge the toll that systemic racism and social injustice have had on people of color, particularly Black communities here in the United States,” said David Calhoun, Boeing president and CEO. “As we work internally to confront these issues, we also remain focused on addressing the causes and impacts of racism and social inequality in the communities where our employees live and work. With today’s financial commitment to this group of nonprofit partners, we are hopeful that together, we can begin to make real advances in our ongoing pursuit of equality.”
The announcement builds on Boeing’s history of partnering with organizations that improve access for and address inequities in communities of color. Over the past five years, Boeing has invested more than $120 million to support under-served communities – including racial equity and social justice programs in those communities – across the United States. Boeing plans to make additional announcements related to its racial equity and social justice investment strategy in the future.
OTHER NEWS
- Heard of the Celia aircraft? The Potentially Revolutionary Celera 500L Aircraft Officially Breaks Cover – The Drive You Will!
- Aviation Game anyone? ‘Airplane Mode’ Wants to Be the Worst Real-Time Flight Simulator – Review Geek
- And, if you were wondering about a supersonic airliner aircraft – here is one! The Colorado startup dreaming up a return to supersonic flight | Engadget
- We had never heard of Lillian Bland who, we understand, flew her own self built airplane in 1910 (Amelia Earhart was only 10 then)! Here’s more – Lilian Bland: The Flying Feminist Who Built Her Own Plane Why didn’t we ever hear of her?
- Ugh! Opinion: Forget International Travel For A While? | Aviation Week Network
- A historic flight – Historic Israel-UAE flight opens possibility for $6.5B in trade | Seeking Alpha
- Aviation Tekkie Bob Bogash sent us a note on the potential manufacturing move of the Boeing 787 from Everett, Washington to South Carolina (presently, components of the aircraft are manufactured in both locations). His comments reflect a long history of acquired companies and closed manufacturing/production locations that irredeemably changed the economies of the cities that once housed those major aviation production facilities.: ”Well, you heard it here first, picture aerospace in SoCal or Long Island – a distant memory, and by increasingly few people to boot, replaced by Costco (no exaggeration – in 1963 I worked at Douglas in Culver City, a giant plant with 8,000 engineers building the Thor, Thor-Delta, and the S-IVB third stage for the Saturn V (and DC-8 engine pylons.) I went back past that place in 1995, it was just a vacant lot. Now – it’s a Costco.) Right next door was the Hughes Aircraft plant and airfield. They built 269A helicopters and did a lot of classified work. Hughes had a 10,000 ft runway where B-52s and B-58s used to land. Check it out on a sat pic and you will only one building is still standing from that giant facility. Grumman Bethpage is another example. There are many – (BTW, Hughes sold the 269A (later 300) helo to Schweitzer Aircraft (of glider fame) in Elmira, NY; they also built Grumman Agcats – crop dusting biplanes. Sikorsky bought Schweitzer, Lockheed bought Sikorsky; the Schweitzer plant was closed.)
Expect Renton to head down the same road. As the 737 builds out its backlog, anything new (????) will get built elsewhere, and Renton will become waterfront condo’s and Home Depots. But, there will be a plaque.
On 8/22/20 9:01 AM, wallawine1@gmail.com wrote: Rep. Larsen, who participated, said Stan Deal offered reassurance that “our presence in Washington is unwavering.” The operative word is “presence” – that could mean a rented office in a strip mall with Boeing on the door.”
Bob also noted: “With the foxes running the hen house, soon all the chickens will be gone, and then the hen house will be converted into a pig sty.”
Bob B.
CabinACe Cabin Wireless Access Point (CWAP) and CabinPinnacle Server were Granted VSTC Approval from the Civil Aviation of China (CAAC)
Waukegan, IL | June 13, 2017– In keeping with the company’s ongoing commitment to the Chinese aviation market, Telefonix PDT™ is proud to announce the successful completion of a Validation of Supplemental Type Certificate (VSTC) from the Civil Aviation Administration of China (CAAC) for its CabinPinnacle™ Server and CabinACe™ CWAP. This VSTC for the Boeing 737-700/-800/-900/-900ER is a continuation of the certification efforts that Telefonix PDT announced at the end of 2016.
Since the early 1990s, the Telefonix PDT team has had numerous long-standing relationships within the Asia-Pacific region, and has built an extensive network of partners and suppliers. This VSTC is just one piece of the company’s current strategy to expand direct offerability of its Summit™ line of In-Flight Entertainment and Connectivity (IFEC) hardware within China. As previously announced, the company is also poised to begin manufacturing and repair services managed via its soon-to-launch Wholly Foreign-Owned Enterprise (WFOE), Huizhou Telefonix Technology Co., Ltd.
“Our commitment to the growing aviation market in Asia is unwavering,” said Alan Manns, Director of Aviation Business Development at Telefonix PDT. “Together, with our partners in the region, we are able to support all aspects of IFEC hardware delivery. This is an exciting step towards our first Summit line installation in China.”
During this year’s In-Flight Connectivity Technology (ICT) Conference, Michael Kuehn, Telefonix PDT President, spoke about the growth of the IFEC market in China and the importance of creating the Internet of Flight™ for the tech-savvy Chinese population. A remarkable 98% of Chinese passengers carry at least one device, and more than 58% use their device for in-flight entertainment, according to the 2016 SITA/Air Passenger Survey. “For those of us that are industry veterans, we have seen the escalating importance of creating an integrated experience for passengers,” said Kuehn. “At Telefonix PDT, we truly believe the time is now.”
This new VSTC is part of the overall Summit line certification portfolio that includes the STC for Boeing 737-700/800/900 aircraft and the Airbus A320. The Telefonix PDT certification efforts are still underway for additional aircraft types and the remaining Summit line products including the CabinEdge™ Content Loader.
- Manila International Airport Authority selects SITA technology for overhaul of Terminals 1 & 2
Manila | November 16, 2016– The Manila International Airport Authority (MIAA) today announced the selection of SITA technology as it takes the first steps to transform Ninoy Aquino International Airport (NAIA) to be among the leading airports supporting IATA’s Fast Travel program. The airport is the main international gateway to the Philippines with more than 37 million passengers and serves as a hub for the country’s major carriers.
The agreement includes the implementation of the most up-to-date airport common-use technologies at Terminals 1 and 2 for fast check-in and bag drop, along with new bag tracking. SITA’s systems, which are used at the world’s top airports, are set to significantly boost ongoing efforts to improve the passenger experience at NAIA.
In this first stage of NAIA’s transformation, SITA will completely overhaul the passenger processing systems in Terminal 1 and 2 putting its next-generation technology SITA AirportConnect Open in place. This will be the platform for NAIA’s next phase of transformation over the coming months, allowing the airport to introduce common-use self-service kiosks, self-bag drop and self-boarding gates.
In addition, a new local departure control system (LDCS) will be implemented. This is the first time an LDCS will be available in Manila and it will provide vital back up to the airlines in cases of disruption of their systems.
Ed Monreal, General Manager, Manila International Airport Authority, said: “Our aim is to improve the airport experience for passengers at Ninoy Aquino International Airport. SITA’s next-generation technology allows the airlines to offer fast and efficient service in Terminals 1 and 2 and its baggage reconciliation system will also ensure bags are electronically tracked until aircraft loading, reducing passenger inconvenience of mishandled bags.
“We are starting with shared airport systems and as we progress in our transformation we plan to introduce self-service technology such as check-in kiosks, bag drop and possibly self-boarding. The airlines have committed to test these self-service systems in the coming months as we work together to alleviate the peak season passenger surge.”
MIAA’s strategic transformation of the two terminals is in line with international standards set by IATA in the Fast Travel program. This program addresses the future of travel and provides more choice and more control for passengers while lowering costs for the industry. It includes self-service options in six areas of a passenger’s airport journey to increase airport efficiency and deliver a better travel experience for the customer.
As part of its strategy to manage the balance between continuous passenger flow and stringent security measures, the MIAA is also evaluating systems which allow security agents to quickly and efficiently validate passengers’ paper and mobile bar-coded boarding passes. These will support the transformation and better facilitate the flow of passengers through airport security.
Ilya Gutlin, President, SITA APAC, said: “This is an exciting time for the air transport industry in the Philippines. Passenger traffic is growing and there is a clear commitment from the authorities to transform the passenger experience at Ninoy Aquino International Airport. SITA’s world-class technology will replace legacy systems at NAIA and underpin that transformation. It will provide the opportunity for a better passenger experience at every step of the journey while enabling efficient airport operations.”
Manila’s passengers are set to enjoy a world-class airport experience. They can expect faster check-in, better baggage management and a smoother journey through NAIA’s Terminals 1 and 2 as the new SITA technology is rolled out over the coming months.