• March quarter 2020 GAAP pre-tax loss of $607 million or $0.84 per share
• March quarter 2020 adjusted pre-tax loss of $422 million or $0.51 per share
• Delta ended the March quarter 2020 with $6.0 billion in unrestricted liquidity

Atlanta, GA | April 22, 2020– Delta Air Lines reported financial results for the March quarter 2020 and outlined its response to the COVID-19 global pandemic.

“These are truly unprecedented times for all of us, including the airline industry. Government travel restrictions and stay-at-home orders have been effective in slowing the spread of the virus, but have also severely impacted near-term demand for air travel, reducing our expected June quarter revenues by 90 percent, compared to a year ago,” said Ed Bastian, Delta’s chief executive officer. “Delta is taking decisive action to prioritize the safety of our employees and customers while protecting our business and bolstering liquidity. I am especially proud of the incredible work the Delta people are doing to keep our nation’s airways open, playing an active role in the fight against the virus.”

Bastian continued, “I would like to thank the President, members of Congress, and the Administration for their bipartisan support of the Payroll Support Program under the CARES Act, which recognizes the important role the airlines play in the U.S. economy. The Payroll Support Program will help safeguard Delta jobs while positioning our nation for recovery.”

Response to COVID-19

Network and Customer Experience

To address the challenges of COVID-19, the company is taking the following actions:

• Making significant capacity reductions for the June quarter versus prior year with total system capacity down 85 percent, including domestic down by 80 and international capacity down by 90 percent
• Adopting new cleaning procedures on all flights, including fogging on all aircraft overnight and sanitizing high-touch areas like tray tables, entertainment screens, armrests and seat-back pockets before boarding
• Taking steps to help employees and customers practice social distancing, including blocking middle seats, pausing automatic upgrades, modifying our boarding process and moving to essential meal service only
• Extending 2020 Medallion Status an additional year, rolling Medallion Qualification Miles into 2021, and extending Delta SkyMiles American Express Card benefits and Delta Sky Club memberships
• Giving customers flexibility to plan, re-book and travel including extending expiration on travel credits to two years

Community Response

Delta and its 90,000 employees are taking an active role in our nation’s fight against the virus by:

• Offering free flights to medical professionals fighting COVID-19 in the hardest-hit areas of the U.S.
• Chartering international cargo-only flights to provide healthcare workers with materials needed to do their jobs
• Operating charters and specially approved scheduled flights to nations around the world to repatriate more than 28,000 people displaced by the virus to the U.S.
• Manufacturing tens of thousands of face shields and masks at Delta Flight Products to aid healthcare workers
• Partnering with the U.S. military to develop and manufacture secure, sterile transport pods at Delta TechOps, which will safely transit infected personnel to hospitals and medical centers
• Donating over 200,000 pounds of food to hospitals, first responders, community food banks, and organizations including Feeding America

Expense Management

The company expects June quarter total expenses to decline by approximately 50%, or $5 billion, over prior year due to reduced capacity, lower fuel and cost initiatives, including:

• Parking more than 650 aircraft
• Consolidating airport facilities, with temporary concourse and Delta Sky Club closures
• Instituting a company-wide hiring freeze and offering voluntary leave options with 37,000 employees taking short-term unpaid leave
• Reducing salary expense through pay reductions for executive management and reduced work schedules across organization

Balance Sheet, Cash and Liquidity

Delta’s top financial priority remains preserving cash and enhancing liquidity. Accordingly, the company has taken the following actions:

• Raised $5.4 billion of capital since early March, including securing a $3.0 billion secured term loan, closing $1.2 billion in aircraft sale leasebacks, issuing $1.1 billion in AA, A and B tranches of our 2020-1 Enhanced Equipment Trust Certificates (EETC), and funding $150 million in private aircraft mortgages to enhance liquidity and satisfy maturing obligations
• Drew down $3 billion under existing revolving credit facilities
• Reduced planned capital expenditures by more than $3 billion, including working with original equipment manufacturers to optimize the timing of our future aircraft deliveries and deferring aircraft mods, IT initiatives, and ground equipment refreshment
• Extended payment terms with airports, vendors and lessors
• Suspended shareholder returns, including the Company’s stock repurchase program and future dividend payments

CARES Act Relief

The company expects to receive relief from the Coronavirus Aid, Relief and Economic Security (CARES) Act in the following forms:

• Payroll support of $5.4 billion, comprised of $3.8 billion of direct relief and a $1.6 billion low-interest, unsecured 10-year loan. Delta has already received $2.7 billion of these funds and expects to receive the remainder over the next three months. As consideration, the U.S. Treasury will receive warrants to purchase over 6.5 million shares of Delta common stock at a strike price of $24.39 with a 5-year maturity
• Eligibility for $4.6 billion in secured loans, if the company chooses to apply and accept funds

“With the significant impact of COVID-19 on Delta’s revenue, we were burning $100 million per day at the end of March. Through our decisive actions, we expect that cash burn to moderate to approximately $50 million per day by the end of the June quarter,” said Paul Jacobson, Delta’s chief financial officer. “The decade of work we put into the balance sheet to lower debt and build unencumbered assets has been critical to our success in raising capital and we expect to end the June quarter with approximately $10 billion in liquidity.”

March Quarter Results

Adjusted results primarily exclude the impact of mark-to-market (“MTM”) adjustments.

• Adjusted pre-tax loss of $422 million or $0.51 per share
• Total revenue of $8.6 billion, down 18 percent versus prior year, with total unit revenue down 13 percent
• Total expense decreased $450 million driven by lower fuel, partially offset by higher revenue- and capacity-related expenses, with non-fuel unit cost (CASM-Ex) up 9 percent compared to prior year
• Fuel expense decreased 19 percent relative to March quarter 2019. Delta’s fuel price for the March quarter of $1.81 per gallon included a $29 million benefit from the refinery
• At the end of the March quarter, the company had $6.0 billion in unrestricted liquidity

Forward Looking Statements

Statements in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements.  These risks and uncertainties include, but are not limited to, the material adverse effect that the COVID-19 pandemic is having on our business; the impact of incurring significant debt in response to the pandemic; possible effects of accidents involving our aircraft; breaches or security lapses in our information technology systems; disruptions in our information technology infrastructure; our dependence on technology in our operations; the performance of our significant investments in airlines in other parts of the world; the restrictions that financial covenants in our financing agreements could have on our financial and business operations; labor issues; the effects of weather, natural disasters and seasonality on our business; the effects of an extended disruption in services provided by third parties; the cost of aircraft fuel; the availability of aircraft fuel; failure or inability of insurance to cover a significant liability at Monroe’s Trainer refinery; the impact of environmental regulation on the Trainer refinery, including costs related to renewable fuel standard regulations; our ability to retain senior management and key employees; damage to our reputation and brand if we are exposed to significant adverse publicity; the effects of terrorist attacks or geopolitical conflict; competitive conditions in the airline industry; interruptions or disruptions in service at major airports at which we operate; the effects of extensive government regulation on our business; the impact of environmental regulation on our business; and the sensitivity of the airline industry to prolonged periods of stagnant or weak economic conditions; uncertainty in economic conditions and regulatory environment in the United Kingdom related to the exit of the United Kingdom from the European Union.

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2019 and our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of April 22, 2020, and which we have no current intention to update.

 

September 27, 2019– Airlines: Major Rearrangement of Partnerships in Latin America
Delta announced it will tender for a 20% stake in LATAM, paying $16 per share (a +70% premium vs. LTM’s closing price), while the US airline will divest its Gol interest. The news is a clear positive for LTM; it suggests some strategic uncertainty for Gol but any P&L impact should be small.

What happened? Delta/LATAM announced a partnership consisting of the following elements: 1) Delta will invest US$1.9bn for a 20% stake in LTM through a public tender offer at US$16 per share (78% premium to the stock’s last closing price and implying a 7.7x 2020 adj. EV/EBITDA); 2) Delta will make gradual down payments totaling US$350mn to support the partnership and LATAM’s transition costs; 3) Delta will acquire 4 Airbus A350 aircraft from LATAM and assume 10 additional A350 aircraft commitments that LATAM was due to receive in 2020-25; and 4) Delta will have a seat on LATAM’s board of directors. The companies intend to implement a joint-business agreement (JBA) in U.S.-Latin America routes, which would imply capacity and route planning. The tender offer and the strategic alliance will be subject to regulatory and anti-trust approvals. Delta has announced that it will sell its 9.4% stake in Gol, which we believe could be done in an organized transaction (such as a block trade).

Strategic alliances. In line with what would be expected, LATAM has announced its intention of ending the partnership with American Airlines and exiting the Oneworld Alliance. The South American airline does not intend to enter into the SkyTeam Alliance; it intends to maintain its partnership with IAG in Europe (a Oneworld Alliance member). So, at least for now, it will have two bilateral agreements and no alliance.

What are the next steps? LATAM and Delta should initiate shortly the process of obtaining regulatory (including anti-trust) approvals in a number of countries for a JBA, a process that could take ~2 years, we understand. In the interim, the companies will announce code share agreements, which we believe could be implemented in the next 3-6 months.

Below we address the implications for both LATAM/GOL and US carriers.

Clearly positive implications for LATAM. The news is a clear positive for LATAM airlines, in our view, for a number of reasons. To begin with, Delta is valuing LATAM at a very large premium to where it has been trading, though the deal brings no new equity (different from the transaction announced with Qatar Airways in 2016 which involved the issuance of new shares – details here). We are also encouraged by the mentioned sales/transfers of the A350 fleet/fleet commitments to Delta. This represents a big additional step forward in rationalizing the company’s fleet and should have favorable (though not easily quantifiable) implications for cash flow and long-term leverage (without sacrificing the ability of the company to grow).

In our view, another positive point is that LATAM and Delta’s route networks have far less overlap than those of LATAM and American Airlines. This means that we are unlikely to see antitrust obstacles to the two airlines doing a JBA (whereas a Chilean judge blocked a LATAM/America JBA effort last May). More important, the lack of overlap may create more opportunities for LATAM to expand and to gain inbound Delta traffic to the region in the coming years. Another basis for a positive view is the mentioned US$350 million Delta will invest in the strategic partnership (which we understand will flow through LATAM’s P&L). Most of this will go to offset real additional costs LATAM will face (such as those associated with terminating its partnership with American) but this US$350mn amount could give a boost to LATAM’s results in the next several years.

A small negative point is that this transaction could further reduce LATAM’s already low liquidity (US$4mn L12M ADTV). We highlight LATAM’s current ownership structure in Exhibit 2. The Cueto Group has signaled that it intends to tender a portion of its shares but plans to remain above 20% (versus the current ~28%). It remains to be seen what Qatar will do.

Implications for Gol: creates stock overhang but any operating impact should be modest. Gol’s stock will likely see some pressure in the near-term on uncertainty related to how/when Delta will divest its position. We believe any P&L impact from Delta leaving their partnership will be small. Customers that Delta feed to Gol represent less than 1% of the Brazilian airline’s revenues. Given the low number of daily flights that Delta operates to Brazil, we believe that American and United are more relevant for Gol (in terms of feeder traffic) than Delta. Today’s news does leave some strategic uncertainty for Gol; one possibility for it is a partnership with American (which might or might not involve the US carrier making a strategic investment in the Brazilian carrier). With LATAM exiting their partnership, American is now the only large US carrier serving the US/Brazil market without a local partner. It’s also worth commenting here that this transaction raises some uncertainty for Smiles because its main foreign airline partners are Delta and Delta’s partners (such as Airfrance, KLM, Aeromexico). As such, we would not be surprised to see SMLS3 coming under pressure in the near term.

What are the implications for Delta Air Lines? Another draw on cash via international investments… The ~$2B equity stake and ~$350M partnership investment are a notable draw on Delta’s balance sheet and cash flow over the next few years. However, management has pointed to available debt capacity to fund the transaction, which our forecast supports (

And from a strategic standpoint, though it came as a surprise, the partnership with LATAM (and subsequent GOL stake exit at ~$200M) does enhance the Central and South American footprint while creating opportunities to apply the airline’s best practices (500bps+ relative margin spread). The benefits may even be seen over the coming months as a codeshare and ultimately a JV are formed. Finally, we estimate the EPS accretion to be limited over the coming years ($50M+ 2020 net income per MSe at 20%) and believe shares may be pressured modestly given the large premium and outlay announced above.

…And a modest negative for those with LatAm exposure in the US. For the industry overall, we believe the announcement is a modest negative with carriers most exposed including AAL, UAL, and SAVE per 7-10% capacity exposure as shown in the exhibit below. This is because DAL is a formidable competitor and has historically shown an ability to enhance operations and networks for its airline investments (e.g. Virgin Atlantic). And on AAL in particular, the airline has noted a limited impact from LATAM’s departure from the Oneworld alliance and from ending its relationship with the airline, especially considering their inability to obtain approval from regulators on a JV.

January 23, 2019– Starting Jan. 23, on Delta flights around the globe boarding zones will be renamed to reflect the branded fare purchased, while still prioritizing customer loyalty.

The new branded boarding order introduces additional boarding groups, encouraging fewer customers to line up in the gate area at any given time and easing crowding during the boarding process. This marks the latest evolution in Delta’s multi-year work to bring consistency, simplicity, clarity and less stress to the gate and boarding experience, efforts that have driven all-time high customer experience scores.

Here’s what customers can expect on day one:

On boarding passes:

• Customers will see the branded fare purchased, or Sky Priority, on their mobile or printed boarding pass – this indicates their boarding group.

At the gate:

• Instead of featuring numbered zones on gate screens and signs, and in boarding announcements, customers will see and/or hear the branded fare they purchased or Sky Priority, letting them know it’s time to board.
• For most customers, their place in the boarding order doesn’t change – the new name simply makes it easier to recognize. SkyMiles Medallion Members* and eligible Delta SkyMiles American Express Credit Card Members will continue to receive priority boarding.
• 

  Customers will also see new color accents distinguishing each of Delta’s fare products and Sky Priority on screens and signage at the gate.

On the Fly Delta app and delta.com:

• Those same new colors associated with each branded fare will be visible to a small number of customers in the digital shopping experience to start. A gradual roll out to all customers on delta.com and the Fly Delta app in 2019 is in accordance with best practices for large digital changes. And, this phased approach will allow Delta to gather customer feedback for continuous improvements.

Branded boarding builds on Delta’s latest boarding enhancement, the addition of zone 4 in 2018 for Basic Economy customers. This change resulted in better customer satisfaction scores in every zone, with dramatic improvement for the reduced number of customers in zone 3 and double digit improvement for Main Cabin zones.

Delta continues to put boarding under the microscope, looking at new ways to organize and test concepts – such as the use of digital screens instead of static boarding signage, like pillars. To help keep customers informed, the airline has also been a leader in adding larger display screens above the door to Jetways and pushing boarding notifications from the Fly Delta app.

New service creates easy access to destinations south of the border

Minneapolis & St. Paul, Minnesota | December 17, 2018–Beginning June 8, 2019, subject to government approval, Delta Air Lines will offer direct service between Minneapolis-St. Paul International Airport (MSP) and Mexico City, Mexico.

The oldest capital city in the Americas, Mexico City also is the most populous city in North America, with nearly 9 million residents in the city proper and more than 21 million in the metropolitan area. The city stands out as a key financial center, with a larger economy than many entire nations in Latin America.

“Mexico City is just the latest in a growing string of international destinations to which we’ve landed air service with the help of GREATER MSP and the MSP Regional Air Service Partnership,” said Metropolitan Airports Commission (MAC) Executive Director and CEO Brian Ryks, noting recent airline announcements for service to Seoul, South Korea and Dublin, Ireland. “Mexico City is the most popular destination in Latin America lacking direct air service from MSP International Airport. On average, 700 people a day travel from MSP to Mexico. This new service and the connections from Mexico City to destinations beyond will make travel between Minnesota and locations south of the border easier and more convenient.”

The oldest capital city in the Americas, Mexico City also is the most populous city in North America, with nearly 9 million residents in the city proper and more than 21 million in the metropolitan area. The city stands out as a key financial center, with a larger economy than many entire nations in Latin America.

“Mexico City is just the latest in a growing string of international destinations to which we’ve landed air service with the help of GREATER MSP and the MSP Regional Air Service Partnership,” said Metropolitan Airports Commission (MAC) Executive Director and CEO Brian Ryks, noting recent airline announcements for service to Seoul, South Korea and Dublin, Ireland. “Mexico City is the most popular destination in Latin America lacking direct air service from MSP International Airport. On average, 700 people a day travel from MSP to Mexico. This new service and the connections from Mexico City to destinations beyond will make travel between Minnesota and locations south of the border easier and more convenient.”

The MSP Regional Air Service Partnership (RASP) is a collaborative air service development initiative launched in 2017 by the MAC and GREATER MSP. The RASP helps identify air service needs of businesses in the region and supports MAC efforts to engage airlines that could potentially serve those markets. The RASP is chaired by Thomson Reuters Executive Vice President-Operations Rick King and former U.S. Bank Chief Executive Officer Richard Davis.

“High-quality air service options are a top priority for businesses in our region. The addition of Delta’s non-stop service into Mexico City is another enhancement to the growing access and international reach available to our corporate community. We are excited about the decision to add Mexico City service and believe this will be a very successful route for Delta,” said Michael Langley, CEO, GREATER MSP.

Delta Air Lines will operate the Mexico City service daily using 124-seat Airbus A319 aircraft. Flight DL451 will depart MSP at 8:50 a.m. daily and arrive in Mexico City at 1:01 p.m. Delta Flight DL452 will depart Mexico City daily at 2 p.m. and arrive at MSP at 6:14 p.m.

Through Delta’s agreement with AeroMexico, from Mexico City travelers can connect to 41 other destinations in Mexico and Latin America.

MSP set a new passenger record in 2017, with more than 38 million people traveling through the nation’s 17th busiest airport. The airport is Delta Air Lines’ second largest hub, and the home base of Sun Country Airlines. Since January 2016, 11 airlines have added 52 new routes at MSP. In both 2016 and 2017, MSP was named Best Airport in North America in its size category by Airports Council International, based on traveler feedback. The airport was also named Most Efficiently Managed Airport of its size in North America for the past two years by the Air Transport Research Society.

The Metropolitan Airports Commission is a public corporation of the state of Minnesota. The MAC owns and operates seven airports in the Twin Cities metropolitan area, including Minneapolis-St. Paul International Airport. All together MAC airports generate nearly $17 billion a year for the area economy and support more than 87,000 jobs. The MAC is funded through rents and user fees generated from airport users, not from income or property taxes.

GREATER MSP is a private-public partnership with the mission to accelerate job growth and capital investment in the Greater MSP Region. It partners with economic development organizations throughout the region to develop strategy, brand and market the region, and serve as coordinator for business retention, expansion, and recruitment projects.

Toulouse | November 16, 2018– Delta Air Lines has ordered 10 additional Airbus A330-900 widebody aircraft, expanding their A330neo order book from 25 to 35 aircraft. This latest order supports Delta’s international growth strategy in the near to medium term.

Simultaneously, Delta and Airbus have agreed to defer 10 previously ordered A350 XWBs to 2025-26 in order to accommodate the airline’s long-term growth strategy. Delta currently operates 11 A350-900 aircraft and expects a further four in 2019-2020. Delta’s A330 fleet stands today at 42 widebody aircraft.

“The A330-900 is going to be an important addition to Delta’s fleet,” said Delta Chief Executive Officer Ed Bastian. “Airbus has infused this next generation of the successful A330 family with new technology and features providing advanced levels of comfort for our passengers and significant operating cost reductions that will make our airline stronger in the decades to come.”

“Operational efficiency and an exceptional passenger experience are core to Delta’s successful recipe, and it speaks volumes that they have chosen the A330-900,” said Christian Scherer, Airbus Chief Commercial Officer. “Delta has been endorsing the Airbus wide-body family from the outset by committing to both the A330 and the A350. We are listening to our customers and proud to be in the position to flexibly respond to their fleet requirements for more A330s and equally appreciate the ongoing commitment for more A350s as part of their long-term growth strategy.”

Scherer added: “This reconfirmed endorsement by one of the world’s largest and most respected airlines validates the economic credentials of our versatile Airbus widebody family in the most advanced and competitive environments.”

Building on the proven success of its popular twin-aisle, twin-engine, widebody A330 Family, Airbus launched the A330neo programme – comprising the A330-800 and A330-900 versions – in July 2014. The A330neo brings significant efficiency improvements while also introducing the Airspace by Airbus cabin, which offers the newest and most advanced in-flight experience with extra personal space and state-of-the-art ambient lighting.

Incorporating the latest-generation Rolls-Royce Trent 7000 engines, along with aerodynamic enhancements – including new extended composite wingtips, which provide 3.7 metres of increased overall span – as well as increased lift and reduced drag, the A330neo is a more efficient aircraft which will generate savings through reduced fuel burn.

The longer-fuselage A330-900 version can accommodate 287 seats in a typical three-class layout or up to 440 for high-density configurations and can provide a range of 7,200 nautical miles.

As a recognized leader in innovation, Delta Air Lines partnered with Airbus to enhance Skywise

Through the agreement an additional 400 Delta aircraft will be connected to Skywise

Toulouse, France | October 15, 2018– Delta Air Lines has entered into a multi-year contract with Airbus to continue using the Skywise open-data platform and related predictive maintenance services. The airline will expand the use of the tool to its A320 and A330 fleets – comprising around 400 aircraft – to track and analyse their operations and performance data and assess failure probabilities in order to anticipate maintenance tasks.

Delta was one of the airlines involved in the development of Skywise Predictive Maintenance by co-designing, testing and making improvement recommendations about some of its key features.

“Skywise is the latest example of our great partnership with Airbus,” said Ed Bastian, Delta’s CEO. “Delta people are continuously focused on improving the experience for customers, and this new tool will enable them to provide an exceptional, reliable experience.”

“I’m extremely proud to see our long-time partner Delta Air Lines, one of the leading airlines of the world, join the Skywise platform,” said Tom Enders, Airbus’ CEO. “Skywise is propelling the aviation industry to new levels of productivity and efficiency, and it is truly becoming an industry flagship. I want to thank Delta for their trust and confidence.”

Skywise was developed to enable Airbus, airlines, equipment manufacturers and maintenance operators to tap into vast amounts of aircraft operational and performance data and identify areas of improvement. Skywise can gather and track many thousands of data parameters on aircraft in operation.

Use of the Skywise-based applications to analyse extensive aircraft data can enable airlines to identify efficiencies, cost savings and enhanced revenue opportunities. Key applications help airlines reduce operational interruptions, maximise aircraft utilisation and flight operations. In particular, Skywise Predictive Maintenance enables them to turn unscheduled maintenance into scheduled maintenance and thus optimise aircraft operations. Airbus rolled-out the Skywise platform at the Paris Air Show in 2017.

Wow! there is a lot going on in the business and we start off with a new Gogo President, Oakleigh Thorne, a big stockholder who has a history of 30 years of leadership experience – here is the release:

Gogo

Gogo announced that Oakleigh Thorne has been appointed President and Chief Executive Officer, effective immediately. Mr. Thorne’s appointment follows the mutual decision by Michael J. Small and the Gogo Board of Directors for Mr. Small to step down as President and Chief Executive Officer, and as a director of the Company. Mr. Thorne, a director of the Company since 2003, has approximately 30 years of leadership experience with significant operational and financial expertise. He currently serves as Chief Executive Officer of Thorndale Farm LLC, the family office of the Thorne family, which is the largest Gogo shareholder, owning approximately 30 percent of the Company’s outstanding common stock. Mr. Thorne has served in numerous senior management positions, including as Chief Executive Officer of two public companies.

From May 2000 until July 2007, Mr. Thorne served as Chairman and Chief Executive Officer of eCollege.com.  Under Mr. Thorne’s leadership, he drove a five-fold increase in equity value which culminated in the sale of the company for more than $500 million. Earlier in his career, Mr. Thorne served as Chief Executive Officer of Commerce Clearing House (CCH) and led a significant operational transformation that culminated in CCH’s $1.9 billion sale to Wolters Kluwer in 1996.

“I am excited to work with the Gogo team as we move forward with urgency to execute on four strategic priorities: driving quality for airlines and passengers, sharpening our operational focus, achieving profitability with the money we have in the bank and driving shareholder value,” said Mr. Thorne. “We are highly confident in our ability to achieve our strategic and financial objectives as we improve execution and realize our significant growth opportunities.”

Ronald T. LeMay, Chairman of the Gogo Board of Directors, said, “With our best-in-class technology and capabilities, the Board believes that Gogo has a clear path to achieving our objectives and that now is the right time to transition leadership. After a comprehensive search process, the Board determined that Oak is the best person to help Gogo achieve our next phase of growth. Oak is a seasoned executive with a strong track record and his interests are aligned with all shareholders. Oak has made significant contributions to Gogo as a member of our Board and has a deep understanding of our business, strategy and operations. On behalf of the Board, we also thank Michael for building Gogo into a global leader and we wish him the best.”

(Editor’s Note: 2Ku has had success both in North America and internationally as well with some significant carriers selecting their 2Ku satellite offering: Delta, American, British Airways, Air France and Cathay Pacific – to name a few. As many of us in the industry are aware, Gogo has experienced some difficulties with the 2Ku antenna -oscillation along with a few other technical issues as well, which we hear the company is addressing. It is IFExpress’ speculation that stockholders are concerned with their investment given the aforementioned issues and the fact that Gogo has not seen a profitable quarter since their IPO in 2011. If we were an investor, we would also be worried about the new telecommunications coming down the pipe within the next few years – possibly 5G, and what that will mean for Gogo, as well as, other legacy connectivity providers in the IFEC realm. As a result, we wouldn’t be surprised to find Gogo courting a major telecom to help solve some of these problems in the very near future.)

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ViaSat

Today, communications company Viasat debuted the fastest satellite internet available in the US — up to 100 megabits per second. It’s thanks to the Via-Sat 2 satellite system, which serves North America, Central America, the Caribbean and a small part of northern South America. Viasat is now also offering tiered unlimited data plans, from 12 to 30 megabits per second. The plans top out at $100 per month.

One of the goals of satellite internet is to provide a high-speed internet connection to homes located in areas that don’t have the ground infrastructure to support it. “The innovations we’re making across our satellite system allow us to do extraordinary things, from moving the satellite industry up-market by delivering premium services, speeds and plans that give consumers new choices in their internet service provider, to helping bridge the digital divide in the U.S. today,” said Mark Dankberg, Viasat’s chairman and CEO, in a statement. In addition to home internet, Viasat is also planning on using its Via-Sat 2 satellite to provide faster and more reliable domestic in-flight internet.

Satellite internet is becoming a bigger market, as the cost of access to space is lowered thanks to companies like SpaceX. Indeed, SpaceX itself is dipping its toes into the arena with the recent launch of two prototype satellites in its planned constellation.

Via-Sat 2 may have just launched in June of 2017, but the company is already working on the three-satellite Via-Sat 3 constellation. The new system is designed to blanket the world in high-speed internet access, with data speeds of up to 1 terabyte per second. It’s scheduled to launch in 2020 for America’s satellite, with the two covering the rest of the world to follow.

(Editor’s Note: We asked nice-guy, Don Buchman, Vice President and General Manager, Commercial Aviation to give our readers a bit more on the growing ViaSat inflight connectivity solution, and he told IFExpress: “We know our airline customers and their passengers expect a great Wi-Fi experience, gate-to-gate. We invested in ViaSat-2, our next-generation satellite and ground network technology, to further extend our lead in offering airlines the most capacity available in the sky with even better economics. These factors enable us to give more airlines, their passengers and their crew faster speeds and higher-quality connectivity at the best in-flight connectivity cost.

It’s our job to ensure our in-flight internet service matches our customers’ high standards and expectations. Our ViaSat-2 satellite system nearly double the capacity of ViaSat-1, which means we can deliver even faster speeds; serve higher streaming demands—even in highly-congested air corridors and hubs; and enable optimal video streaming capabilities for the best in-flight viewing experiences onboard. Additionally, ViaSat-2 offers seven times more coverage as compared to ViaSat-1, which means we can now provide the highest-quality internet service to more locations, including: across the continental U.S., to the Caribbean and across the Atlantic Ocean to Europe. And finally, ViaSat-2 essentially doubles the bandwidth economics over our prior generation satellite system, which enables us to offer in-flight internet service at the best cost to the airline.

Our technology takes a substantial leap forward—compared to any other in-flight internet service—which allows us to connect more passengers today, while accommodating the broadband demands of tomorrow.”)

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Crystal Cabin Awards

In 2018 there are now 24 pioneering finalists for on-board innovations, the winners to be announced as every year, as part of the leading global trade fair for aircraft cabins, the Aircraft Interiors Expo (10 – 12 April in Hamburg), at a gala dinner to be held at the Hotel Atlantic Kempinski on the evening of Monday, 10 April. The winners will then present their concepts once more at the Expo in the Crystal Cabin Award Gallery, Hall B3, 1st floor, on Thursday 12 April, at 11 AM. Information on all finalists will be available there throughout the entire Expo.2018 finalists: 24 pioneering on-board innovations for airliners | CRYSTAL CABIN AWARD

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Big Data/AI

It looks like Boeing and Microsoft are partnering for a efforts in the Big Data and AI and you can learn more here:Boeing and Microsoft: Taking the next step together in digital aviation – Transform  and here Your next Boeing flight may be getting a cloud and AI upgrade, courtesy of Microsoft – TechRepublic We do understand the deal will focus on Big Data to improve fuel consumption and improve maintenance. Further, you can be sure these two technologies will make their way into aviation and travel to improve the flight experience more and more in the next few years.

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Airbus

The first Ultra Long Range version of the A350 XWB has rolled out of the Airbus final assembly line in Toulouse. The latest variant of the best-selling A350 XWB Family will be able to fly further than any other commercial airliner and will enter service with launch operator Singapore Airlines later this year. Altogether, Singapore Airlines has ordered seven A350-900 Ultra Long Range aircraft, which it will use on non-stop flights between Singapore and the US, including the world’s longest commercial service between Singapore and New York.

Following completion of the airframe assembly, the first aircraft has now moved to an outdoor station where it will undergo extensive ground tests, prior to installation of its Rolls-Royce Trent XWB engines.

The aircraft will then embark on a short flight test program to certify the changes over the standard A350-900 that will bring the additional range capability. These include a modified fuel system that increases fuel carrying capacity by 24,000 L or 6340 Gal., without the need for additional fuel tanks. The test phase will also measure enhanced performance derived from aerodynamic improvements, including extended winglets.

With a maximum take-off weight (MTOW) of 280 tonnes, the A350 XWB Ultra Long Range is capable of flying up to 9,700 nautical miles or over 20 hours non-stop, combining the highest levels of passenger and crew comfort with unbeatable economics for such distances.

The A350 XWB is an all new family of widebody long-haul airliners shaping the future of air travel. The A350 XWB features the latest aerodynamic design, carbon fibre fuselage and wings, plus new fuel-efficient Rolls-Royce engines. Together, these latest technologies translate into unrivaled levels of operational efficiency, with a 25 per cent reduction in fuel burn and emissions, and significantly lower maintenance costs. The A350 XWB features an Airspace by Airbus cabin offering absolute well-being on board with the quietest twin-aisle cabin and new air systems.

To date, Airbus has recorded a total of 854 firm orders for the A350 XWB from 45 customers worldwide, already making it one of the most successful widebody aircraft ever. Singapore Airlines is one of the largest customers for the A350 XWB Family, having ordered a total of 67 A350-900s, including the seven Ultra Long Range models. The carrier has already taken delivery of 21 A350-900s.

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Other Stuff

• Yesterday. Boeing reported that while some 60+ B767’s planes were at a high interest level by a “large US airline”, but then announced that it is not coming back. Performance and efficiency are probably the issues.
• If security is your thing, you must check out this story in DARKReading by Zeus Kerravala because it outlines the changes in the cybersecurity landscape in 4 focused concerns (1 Malware is becoming self-propagating, 2. Ransomware is not only for ransom, 3. Adversaries are stepping up their evasion capabilities, and 4. The Internet of Things (IoT) is becoming a significant threat vector) and some good recommendations. How & Why the Cybersecurity Landscape Is Changing And yes, cyberattacks increased 82% last quarter! Cyberattacks per firm increased by 82%, reveals Fortinet report | Networks Asia | Asia’s Source for Enterprise Network Knowledge
• President Donald Trump has reached a deal with Boeing for a pair of 747 jumbo jets to be modified into Air Force One planes, the White House announced Tuesday. The deal is worth $3.9 billion, according to Reuters.
• Yes, you can buy a Boeing jetliner with a Prayer Space: Boeing’s Inflight Prayer Space Concept Catering To Religious Needs | Aircraft Interiors content from Aviation Week
• And we know this is not aviation, but it certainly is a change of times – “For the very first time in the history of Girl Scouts, millions of them are taking on hacking and other cyber-security concerns as they work and struggle towards earning newly introduced badges of cyber-security, nationwide. Girl Scouts from the USA joined hands with the security company, Palo Alto Networks to establish such a syllabus that gives education to young girls about the basic study of computer networks, cyber-security, and online safety.” Girl Scouts fight cybercrime with new cybersecurity badge

One interesting thing about an increase in connectivity, there is a plethora of uses for it that weren’t always in the planning stage! Our lead story this week is based on a use for connectivity that made the possibility of turbulent weather reporting a reality via the use of a flight crew tablet, a Flight Weather Viewer app, and of course Gogo connectivity.  The following is just one usage for increased connectivity on planes. Our image this week is one from the Gogo website and we thought you might find it an interesting addition to the weather story.

While today’s feature is a far cry from IFE, it is one of improved flight experience via connectivity. IFExpress was not surprised when we found out that the folks at Delta were involved in reducing the impact of inflight turbulence and so we did a bit of research. We asked Gogo what the story was and we were directed to Delta talks turbulence for a bit of background. Delta airlines has had their eyes on reducing turbulence impact for some time and to give you an idea of the magnitude of the turbulence solution, here is one sentence from the article that sums up the value of ‘working the problem’: “According to NASA’s Weather Accident Prevention Project, turbulence costs airlines approximately $100 million every year. It also makes customers and crews uncomfortable, and in rare cases, can even cause a few bumps and bruises on board.”

Obviously, the issue for Delta is turbulence, but the issue here for Gogo is connectivity, and when we contacted their communication source, Morgan Painter, she noted: “…we are really excited about this partnership and have heard great feedback from DL’s pilots around improved flight safety and efficiency – as the article mentions, some even have been calling it “an industry game changer”. This is just another partnership that gets us one step closer to the reality of a connected aircraft.” Aha, the magic words you will hear more and more about in the future… and the reason we found this turbulence solution intriguing relies on The Connected Aircraft. Gogo noted: “Check out this link,  it includes information about our technologies, airline partners and vision for the connected aircraft.”

As we mentioned earlier, our rectangle is a picture of the aircraft hardware involved in the Delta solution which also employs a Delta Flight Weather Viewer App on the crew devices, all working through Gogo connectivity. Together the system and the crew get the information they need to make the right flight decisions to handle turbulence: climb, descend, slow down, or change route. “Predicting the where, when and intensity of turbulence is notoriously difficult to do. But Delta has developed a new, industry-leading app that’s helping pilots better spot and avoid it.”

“For Gogo, we are providing the broadband connection between the Delta tablet EFB (Microsoft Surface) and associated app and ground servers,” the company notes. Here’s what Delta says: “Setting Delta’s app apart from similar technology, the data is customized by aircraft type, since turbulence affects a 737 narrowbody differently than a much larger A330. It is also available in real time, thanks to fast and secure connectivity via Gogo’s in-flight Wi-Fi network, instead of through the traditional ACARS digital datalink system that’s been in place since the late 1970s. Bandwidth and network speeds offered by Gogo vs. legacy datalinks is a key difference inherent with our technology where latency is measured in milliseconds for supporting successful TCP/IP communications.”

With more than 16 commercial airlines, 2,800 connected aircraft (and some 7,000 business jets), Gogo is in a good place to help a lot of fliers. Network speed and data connectivity will certainly change the world of commercial flying… and besides it’s hard to enjoy inflight entertainment when the plane is bouncing all over the sky.

(Editor’s Note: We wanted to give our readers a view of what hardware is involved in the connectivity solution and that is why we chose the airplane graphic. You will probably understand the Ku antenna, onboard server, and internal cabin pax Wi-Fi antennas. However, there are two boxes that we had to get a bit more data on: KANDU and MODMAN. For you tekkies: “The MODMAN (Modem and Manager) is the interface between the antenna and our equipment, and is responsible for converting the satellite data stream. This in turn feeds into the onboard Gogo server and on to the cabin wireless access points, allowing your devices to connect over Wi-Fi. The KANDU (Ku/Ka Aircraft Networking Data Unit) is what physically controls the antenna. It interfaces with the aircraft navigational systems to control the movement of the antenna. The KANDU is also responsible for making sure the system reconnects to the right satellite as a single satellite can only cover a certain area, which means longer flights may switch between 2 or even 3 different satellites.” There, now you know… )

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Panasonic:
Panasonic today announced that its weather division, Panasonic Weather Solutions, is providing ground operations weather forecasting to Denver International Airport. The company’s Forecasting Center of Excellence (FCoE) provides detailed station-based weather forecasting, as well as enhanced weather forecasting for significant convective and winter weather events.

Panasonic’s FCoE delivers unparalleled weather forecasting information, with days-out accuracy, via customized products that offer at-a-glance ease of use, while their meteorologists utilize highly-accurate and unique atmospheric datasets, as well as sophisticated 4D quality control and proprietary forecasting models, to provide Denver International Airport ground operations with state-of-the-art and unmatched forecasting for informed decision making.

CEO, Paul Margis, said: “Our Weather Solutions division sets the standard for world-class weather forecasting. We are proud to partner with Denver International Airport Ground Operations to deliver the most accurate weather information available for operational safety and efficiency.” He also noted: “Denver International Airport can be confident that the weather forecasting they receive from Panasonic will provide them with an operational advantage, from proper staffing levels to staging the right equipment and materials appropriate to the weather circumstance.”

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Inmarsat:
A career in the rapidly expanding space industry is not just about launching and flying spacecraft according to Inmarsat, a world leader in mobile satellite communications. Announcing the company’s search for its next generation of ‘space pioneers’, the company’s Chief Technology Officer (CTO), Michele Franci, emphasised that to remain a global leader, Inmarsat is focused on attracting world-class engineering talent.Inmarsat’s third ‘Technology Development Programme’ (TDP), which was launched today at New Scientist Live in London with British ESA astronaut Tim Peake and graduates from Inmarsat’s second TDP programme, is designed to start the space engineering careers of five STEM (Science, Technology, Engineering and Maths) graduates. The winning candidates, selected from UK and European universities, will have the opportunity to undertake a two-year placement with Inmarsat and the offer of a permanent position on the successful completion of the program.

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SITA:
The Greater Orlando Aviation Administration (GOAA) today unveiled a new standard in airport displays that will span the length of five football fields to create a fun and interactive check-in experience for the 42 million passengers who travel to and from Orlando International Airport every year. SITA, the air transport technology provider, has partnered with Synect to design and install the ultra-high definition video wall, which fully integrates with the airport operational systems to deliver dynamic way-finding along with flight information, destination time and weather, security and gate information. In addition, the family-friendly airport can now display engaging games to entertain its young travelers and decrease perceived wait times.

The digital canvas, which will span 1,560 feet (475 metres), comprises more than 700 55” LG LCD screens to create a vast and continuous video wall, essentially creating digital wallpaper. The new digital experience at Orlando also includes installations from the curb side to the terminals, including outdoor digital displays, self-check-in and way-finding video walls.

We first heard about meshed aviation networks a few years ago but not much has happened in the build and test phase until now. In the past, and as far back as 2008, mesh networks have found use on the ground and in the air with the military. However, in the last couple of years, mesh networks have found a proposed place, specifically in aviation papers like this one. Interestingly, Wikipedia notes; “The 66-satellite Iridium constellation operates as a mesh network, with wireless links between adjacent satellites. Calls between two satellite phones are routed through the mesh, from one satellite to another across the constellation, without having to go through an earth station. This makes for a smaller travel distance for the signal, reducing latency, and also allows for the constellation to operate with far fewer earth stations than would be required for 66 traditional communications satellites.”
Now, the Airborne Wireless Network folks are targeting the communication to and from the ground, through moving aircraft paths… that is, the planes have antennas that talk to each other, as well as, to ground stations – look at it as a flexible, moving wireless network that does not use satellites, but rather, uses the airplane(s) as the communication nodes to ground stations. As the reported requirements for off-plane data increases, as well as the development failure prediction capability based on more data, communicating black box testing, and passengers and crew data usage goes up – another method to send it might be useful! The concept in our first story is the result of a lot of new technology brought about by new data handling capabilities, advanced antenna processing, flexible spectrum management and frequency-agile transmissions and importantly, software defined networking. While Airborne Wireless Network has kept a low profile about their operation, you are going to hear a lot about the technology, and a lot about their product in the future. Stay Tuned!

Airborne Wireless Network:
Airborne Wireless Network (the company) is pleased to announce that it has entered into a Memorandum Of Understanding with Kansas City-based Jet Midwest Group (Jet Midwest). It states that both parties have agreed to enter into a definitive agreement by September 30, 2016. The memorandum further states that Jet Midwest Group would be providing up to three Boeing 757-223 Jetliners to Airborne Wireless Network for its ‘proof of network concept’ and FAA certification testing. Two of these Boeing 757-223’s have tentatively been designated for the company’s use.
Once the aircraft have been fitted with Airborne Wireless’ equipment and ground-testing has been completed, the company plans to fly these commercial jets from Roswell, New Mexico to Kansas City, Missouri. According to the FAA, this will be a historic “first ever” flight of a meshed commercial airliner-based network. Their plan is for global service of real-time data performance developing a virtual airborne “worldwide web”. One of the advantages of an airplane-based is, of course, no space junk which is a big deal. The only hang-up is you have to get a lot of folks in the game with all their aircraft before enough coverage is available as a reliable connection service. If there are enough players, the advantages, however, result in multiple signal paths, a true “meshed network”, and no single point of failure. We are sure you can see the issues, especially since we are in the heyday of potential signal hacking but being some 30,000 feet above ‘bad guy’ signal sources may have value, not to mention the removal of ground-to-air and air-to-ground weather-related signal and distance losses. This is worth watching.

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GOODBYE JOE:
Last week, Boeing’s Father of the B747, Joe Sutter, passed away at 95. Mr. Sutter was involved with many planes that Boeing built like the B377, the “Dash 80”, B707, B720, B727, B737, and famously as the Father of the B747. He was a nice man and always had the time to say hello… goodbye Joe.

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AIN PRODUCT SURVEY CONGRATS!
AIN reports in aircraft cabin electronics this year that, Aircraft Cabin Systems came in second in their Product Report Survey. Gogo Business/Satcom Direct tied for first place. Additionally, Satcom Direct won for overall product reliability. Check the survey results out here.

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AIRBUS:
AIRBUS announced orders from VIETJET for 10 A321ceos and 10 A321neos and JETSTAR PACIFIC for 10 A320ceos; and MOU from VIETNAM AIRLINES for 10 more A350s. We also note that AIRBUS delivered 61 airliners (47 A320 Family, seven A330s, six A350s, and two A380) in August versus 44 (32 A320s, 10 A330s, two A380s) in August 2015. It has now delivered 400 some aircraft in 2016.

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THE DELTA MESS:
Delta has reported a $100 million loss from those 2300 lost flights last month, which was blamed on a bad router and data backup capability. Wow, that’s an expensive router! Check out the full story.

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AIX ASIA:
From the folks at Aircraft Interiors Expo Asia we get this bit of info about the show – “AIX Asia will welcome more than 50 exhibitors across seating, onboard retail, passenger comfort and more, including Geven, ZIM and Mirus Aircraft Seating. We are co-located with the Future Travel Experience Asia EXPO and the APEX EXPO, bringing together over 150 exhibitors to Singapore this year and creating the airline industry’s biggest fall event for the passenger experience industry.” IFExpress will be there October 24 – 27, 2016 and we hope you will too. We should also note that while the Zika virus has now infected 151 individuals in Singapore, the first locally-transmitted Zika infection was reported this past Saturday but most cases reported are from foreigners. “We have been tracking Zika for a while now, and knew it was only a matter of time before it reached Singapore,” Prime Minister Lee Hsien Loong posted on his Facebook page. “Our best defense is to eradicate mosquitoes and destroy breeding habitats, all over Singapore.” Singapore is the only Asian country with active transmission of the mosquito-borne Zika virus. We are bringing our Sawyer Picardin (Consumer Reports highest rated insect repellent – look it up.

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VARIOUS LINKS WORTH YOUR TIME:
1. How to Keep Your Mac or iPhone Secure When Traveling Overseas | The Mac Security Blog
2. FAA Tightens Safeguards on Lithium Batteries on Airplanes – WSJ
3. Why You Should Drink Milk Before A Road Trip
4. Long TSA Delays Force Airports To Hire Private Security Contractors – Slashdot
5. ViaSat (VSAT), Eutelsat Receive New Contract in Europe
6. The Ultimate Guide to Travel Plugs
7. Travel hacks to avoid fees for Wi-Fi, extra legroom

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auf Wiedersehen AXEL!
“As of today I will go on a sabbatical leave! Still unbelievable for me, but after a very long time at TriaGnoSys and Zii, I will give up work responsibility, and enjoy various other activities, family and friends, which I gave too low focus in the past.  So I am leaving with a smile in one eye and a tear in the other.  Looking forward to seeing you soon again, take care, Axel”

Chicago, IL | May 4, 2016– Gogo (NASDAQ: GOGO), the global leader in providing broadband connectivity solutions and wireless entertainment to the aviation industry, announced today that Delta Air Lines has increased its commitment to Gogo’s industry leading in-flight connectivity technology – 2Ku. This increases Delta’s total number of 2Ku committed aircraft to more than 600.

“Delta customers have expressed an interest in their time in the air being as productive as their time on the ground, and 2Ku satellite offers a vastly upgraded in-flight Wi-Fi experience,” said Tim Mapes, Delta’s Senior Vice President and Chief Marketing Officer. “By committing to more aircraft with 2Ku technology, we’re providing Delta customers with faster and more reliable in-flight connectivity as a part of Delta’s commitment to always delivering the industry’s best on-board services.”

“With 2Ku, Delta will be able to deliver a better inflight experience to its passengers wherever they fly around the world,” said Jon Cobin, Gogo’s Executive Vice President, Global Airline Business Group. “We know how important it is to Delta to bring this technology to passengers and we plan on getting it deployed on these aircraft as soon as possible.”

Gogo’s 2Ku technology is designed to be open so it’s compatible with multiple satellite networks, which means the technology will be upgradeable over time without having to touch the aircraft. This flexibility will help ensure Delta is future ready and ahead of the curve from a technology perspective.

2Ku installations have already started on the 737-800 and A319 fleets, and additional Delta fleets will be retrofitted with the new system. Delta will operate more than 35 aircraft with 2Ku by the end of 2016.

Welcome to the inaugural edition of a Hot Topic series we call “Speakers’ Corner“. If the title sounds familiar it’s origin began in the Northeast corner of London’s Hyde Park where open-air public speaking and debate are allowed. While the British version of this democratic podium allows just about anyone to get on his or her soapbox, IFExpress has only asked folks who really know their stuff to share it with our readers. Meet Jonathan Alford, author and editor of the travel blog “Travel Technology and Consumer Experience – Thinking Forward“. Jonathan understands technology (probably because of his day job), the travel experience, and the impact of social media on our business. We were lucky to get him for this kickoff piece. If you are interested contact Mr. Alford directly.

What Delta’s Amazon Deal Signifies For Ancillary Merchandising and Digital Entertainment – by J. Alford

For the first time recently, I experienced the new deal between Delta, Amazon, and Gogo and am encouraged in several ways.

Though I have worked in travel technology, strategy, and finance for many years, I am less familiar with the historical inner workings of IFEC. However, I’m also a consumer and have enjoyed commenting the past couple of years, hoping to identify ways in which airlines, WiFi providers, and other partners can create a better – and more profitable – passenger experience.

In late 2009, mobile technology, fierce competition in digital media and entertainment markets, and airline WiFi installation trends seemed to present opportunity as they converged. At the time, I put forth an approach with a few basic elements:

1) Use mobile technology and digital entertainment to drive ancillary revenue in a departure from the traditional IFE value chain
2) Position passenger markets as a customer acquisition channel for strong consumer digital entertainment brands and to deliver a more compelling experience
3) “Think outside the flight” with mobile and location merchandising to expand revenue opportunity

Now, the Amazon deal makes an interesting story not only in IFEC, but by showing that airlines (and possibly hotels) are recognized as a potentially large customer acquisition battleground in the cutthroat digital media and entertainment industry fight for “living room share.”

This is not just IFEC anymore – and thinking in the context of the broader Digital Media industry could be constructive.

What’s so special?

To start, it’s good to acknowledge Delta and Gogo for adapting to deliver a more compelling passenger experience.

Not to ignore IFE trailblazers like JetBlue and Virgin America and what other airlines are doing, but a marriage of Delta, one of the world’s largest airlines, and Amazon, the world’s largest online retailer and disruptive force in the book and entertainment industries, is noteworthy.

Also noteworthy? Delivering a better passenger experience and driving ancillary revenue are not mutually exclusive.
First, note Amazon’s presence on Delta’s web homepage – positioned as “Your Pre-Flight Destination…for…books, music, and travel essentials”.

Next, note the free Amazon access dominant on the Delta-Gogo home screenshot and Groupon’s placement to target deals based on the destination.

What is being recognized is that airlines offer – at least for a snapshot in time – the holy grail of merchandising. They know exactly when travelers are thinking about what they’re going to do on their flight, where they’re going, and what they have always been high impulse-buy consumers of – books, movies, music, and more.

Think they won’t be tracking retail, Kindle, and other purchases to personalize merchandising to travelers who also use Amazon in everyday life?

What is not yet seen is a dedicated channel for Amazon Video, but I’d imagine we will as in-flight streaming and seat-back technology improves and/or a new revenue sharing model with studios is formed.

For now, Gogo provides video downloads, but in the future, a democratized model rather than “walled garden” is more aligned with today’s expected consumer digital entertainment and commerce model.

… Read More

NEW YORK, Feb. 19 – Delta Air Lines (NYSE: DAL) , the official airline sponsor of the 2009 Tribeca Film Festival taking place April 22 through May 3, continues to support emerging filmmakers and independent film through the airline’s third annual national film competition: Delta’s Fly-In Movies.

Five short film finalists were selected by programmers of the 2009 Tribeca Film Festival from thousands of entries. From March 1 through April 12, Delta customers on flights equipped with Delta on Demand, the airline’s personal, seatback in-flight entertainment system, can view all five short films for free. The films also will be available for viewing at delta.com/flyinmovies where customers can rate each film from their own internet connection or at 30,000 feet on Delta aircraft equipped with Gogo(R) in-flight Wi-Fi. The film rated highest by viewers will be featured in the Tribeca Film Festival’s Short Film Program.

“Given our global reach and diversity, Delta’s partnership with the Tribeca Film Festival is a natural fit,” said Gail Grimmett, Delta’s senior vice president of New York. “Through the third annual Delta’s Fly-In Movies Competition, it’s exciting to have our diverse customer base screen these five original works and ultimately select the winning entry to be featured at this Festival promoting talent from around the world.”

“The five works — all moving, funny and powerful in their own way — embody a broad range of genres in the craft of short storytelling. The films exemplify high levels of filmmaking as each succinctly takes the audience through a complete emotional journey,” said Maggie Kim, Shorts Programmer for Tribeca Film Festival. “We would be proud to select each of these works for the Tribeca Film Festival but are excited to engage our audiences with this unique opportunity to play a role in shaping our program.”

The five films in competition include:

— “Cold Calls” by Jack Daniel Stanley: In this 80’s spoof, a woman receives increasingly bizarre phone solicitations from an obsessive telemarketer.

— “Eight Percent” by Alexander Poe: Two high school exes meet up ten years later on an awkward date.

— “Gerald’s Last Day” by Justin Rasch and Shel Rasch: Gerald the dog has been scheduled for his termination by the dog pound at 5 p.m. Can he seduce a potential adopter before his time runs out?

— “The Green Film” by Andrew Williamson: It’s not easy being green — especially when you’re a filmmaker. So how do you make the greenest movie of all time? Watch and learn.

— “Locks” by Ryan Coogler: Dante wears his hair in dreadlocks. When he goes to the local barbershop, we see into his heartbreaking home life and learn how big his heart is.

As part of Delta’s Fly-In Movies competition, the airline will fly all six filmmakers to New York City during the Tribeca Film Festival to attend a celebration hosted by Delta and the Festival where the winning film will be announced. In addition, the winning filmmaker will receive a pair of round- trip tickets for travel in BusinessElite, Delta’s international business class, anywhere Delta flies worldwide.

Through Delta on Demand, customers can enjoy live television, HBO programming, first-run and popular classic movies, a broad range of music, and a suite of 10 video games. Additionally, the airline’s Gogo In-Flight Internet service offers customers traveling with Wi-Fi enabled devices, such as laptops, smartphones and personal digital assistants (PDAs), access to the Internet, corporate virtual private networks (VPNs), corporate and personal e- mail accounts, and SMS texting and instant messaging services.

Delta Air Lines is the world’s largest airline. From its hubs in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Salt Lake City and Tokyo-Narita, Delta, its Northwest subsidiary and Delta Connection carriers offer service to 378 destinations in 66 countries and serve more than 170 million passengers each year. Delta’s marketing alliances allow customers to earn and redeem either SkyMiles or WorldPerks on more than 16,000 daily flights offered by SkyTeam and other partners. Delta’s more than 70,000 employees worldwide are reshaping the aviation industry as the only U.S. airline to offer a full global network. Customers can check in for flights, print boarding passes, check bags and flight status at delta.com.

Website: http://www.delta.com/flyinmovies/
Website: http://www.delta.com/

You are correct, pictured here is IFE’s Geoff Underwood (Inflight Peripherals) at a reception meeting HRH Elizabeth II after receiving the Queen’s Award for achievement in export or innovation. In Geoff’s words, “It doesn’t matter how big or small the company is… I guess it would be the same as a “Presidents Award” in the USA.  It’s the highest award that a company can get in the UK, and only a handful get it each year, so its pretty cool for our little company to receive this coveted award.” Right you are Mr. Underwood and we note that it took almost a year to get the humble UK business owner to tell us more. His words probably describe the scene best: “Ours was for export (international trade) because most of our products ship to the USA, and for the fact that we have gained business with world leading organizations (you know who they are). Once you have the Award, you can use the logo on your headed notepaper, and stuff like that, and you can generally use the status of the Award to “big up” your business.  Obviously, it’s not that well known in the USA, but in the UK and in Europe it’s well respected. I like to think that this has been achieved by producing good products, but also by gaining the trust of our customers through providing what we say we’re going to provide.  Our delivery record is excellent. We turn around new designs quickly, and the quality and reliability of our products is way up there too.”  

Geoff went on, “So, we got told about the award in April.  Then we were invited to meet HM The Queen and HRH Prince Philip at Buckingham Palace. The coolest bit was being able to drive our car through the front gates in front of the Palace – They are the one’s you see in all the movies where tourists stand. Claire and I laughed our socks off when foreign tourists were taking photos of us… just in case we might be royalty!!!!  You’ll have to call her Princess Claire from now on! Inside, there’s a reception where you stand around talking with other Award winners. Then you queue up and get introduced to HM The Queen. Shake hands, bow, and then move on. Later in the year was the presentation of the actual Award. This is a beautiful cut glass bowl, and it was presented at our factory on the Isle of Wight by HM The Queen’s representative The Lord Lieutenant (pronounced Leftenant here in jolly old England). We invited loads of suppliers and customers, and had a great day, which included a tour of the Island on an open top bus!” Jolly good on you, Geoff! 

On another front, check out link on the AirCell/Delta vs. Ambit lawsuit:
http://www.ajc.com/business/content/business/delta/stories/2009/02/18/aircell_delta_lawsuit_wifi.html. It seems a Brit with an international patent claims infringement, but we have never heard of the guy(s). Obviously, no comment from all involved but you might Google the title of the patent for more info… or check out this link: http://www.wipo.int/pctdb/en/wo.jsp?IA=GB2007001278&wo=2007116209&DISPLAY=STATUS

You other IFE vendors who are dabbling in connectivity (you know who you are) might want to pay particular attention to this one:�
Lastly, we have been getting emails about a forthcoming legal battle between Digecor and E-Digital on the bench this week. Stay Tuned, it’s never dull here!