Lufthansa Group Selects Viasat for In-Flight Connectivity Upgrades

Rhea-AI Summary

Viasat, Inc. (NASDAQ: VSAT) announced that Lufthansa Group will equip over 150 additional aircraft with the European Aviation Network in-flight connectivity solution. The partnership aims to provide consistent, reliable in-flight connectivity across Lufthansa, SWISS, and Austrian Airlines fleets, enhancing the passenger experience. The EAN combines S-band satellite coverage with a ground component network, ensuring high bandwidth support for streaming. The announcement reflects Lufthansa Group's commitment to exceptional passenger experience and showcases the importance of quality in-flight Wi-Fi to passengers' perceptions of an airline.

Insights

Market Research Analyst

The decision by Lufthansa Group to expand its in-flight connectivity (IFC) capabilities by equipping an additional 150 aircraft with the European Aviation Network (EAN) solution is indicative of the airline industry's ongoing transformation towards enhanced passenger experiences. The move aligns with consumer demand trends, where connectivity is increasingly becoming a differentiator for airlines. According to Viasat's 2023 Passenger Experience Survey, a significant majority of passengers value in-flight Wi-Fi, with many willing to rebook based on this service alone. This highlights the potential for increased customer loyalty and revenue streams from ancillary services like Wi-Fi access, which could positively impact Lufthansa Group's market position and customer satisfaction metrics.

From a market perspective, the partnership with Viasat and the integration of EAN could serve as a competitive advantage for Lufthansa Group against other carriers, particularly within the European market where the demand for high-quality IFC is growing. The adoption of EAN's lightweight and low maintenance equipment may also lead to operational cost savings and enhanced sustainability, which are important factors for investors and stakeholders who are increasingly focused on environmental, social and governance (ESG) criteria.

Aviation Industry Expert

Lufthansa Group's selection of the EAN for additional aircraft is a strategic investment in the technological infrastructure of their fleet. EAN's use of S-band satellite coverage, complemented by a ground network, is designed to meet high bandwidth requirements, supporting activities like streaming that are in high demand by today's air travelers. The adoption of this technology reflects the airline's foresight in anticipating future passenger needs and positions Lufthansa as a leader in in-flight amenities in the European aviation market.

Furthermore, the integration of EAN is a testament to European technological and regulatory capabilities, showcasing a successful model of pan-European collaboration. This could have broader implications for the European aviation industry, setting a precedent for future technological advancements and regulatory frameworks. The efficiency gains and sustainability improvements from the use of small, low drag terminals could also contribute to Lufthansa Group's operational efficiency and environmental targets, which may positively influence the company's stock performance in the long term.

Sustainability Analyst

The adoption of EAN terminals by Lufthansa Group for their A320 and A220 fleets represents a significant step in the airline's sustainability journey. The use of small, low weight, low drag terminals not only aligns with the industry's push towards reducing carbon emissions but also offers cost-saving opportunities through decreased fuel consumption. As investors and consumers alike are becoming more environmentally conscious, such initiatives can improve Lufthansa Group's sustainability credentials, potentially enhancing its corporate reputation and shareholder value.

The long-term benefits of this investment could be substantial, as airlines that prioritize sustainability are likely to be favored by eco-conscious passengers and may also benefit from regulatory incentives. Lufthansa's proactive approach in this area could serve as a benchmark for the industry, potentially influencing the stock market's perception of the company as a forward-thinking and responsible operator.

More than 150 additional aircraft expected to be equipped with the European Aviation Network connectivity solution as Lufthansa Group continues to focus on exceptional passenger experience. 

CARLSBAD, Calif., Jan. 24, 2024 /PRNewswire/ -- Viasat, Inc. (NASDAQ: VSAT), a leader in global communications, today announced that Lufthansa Group has selected Viasat to equip more than 150 additional aircraft – across its Lufthansa, SWISS, and Austrian Airlines fleets – with the European Aviation Network (EAN) in-flight connectivity (IFC) solution. EAN combines S-band satellite coverage provided by Viasat with a complementary ground component network operated by long-standing Viasat and Lufthansa Group partner, Deutsche Telekom, delivering a service that supports streaming and other high bandwidth requirements.

This announcement continues a successful, enduring partnership between the companies. Inmarsat, which was recently acquired by Viasat, has provided its Ka-band IFC service to Lufthansa Group since 2015. This connectivity solution is already onboard 240 Lufthansa Group narrow-body aircraft.

The new selection showcases Lufthansa Group's ongoing commitment to driving an exceptional passenger experience, offering a consistent connectivity experience across its fleets, ensuring that no matter which route or aircraft passengers take, they can benefit from reliable in-flight connectivity. The additional 150+ aircraft include Airbus A320s, A320neos and A220s fleet types.

EAN is a unique example of European technological and regulatory leadership, which allows air travelers in Europe to benefit from an outstanding pan-European IFC experience. Additionally, EAN takes advantage of small, low weight, low drag terminals, enabling Lufthansa Group to unlock cost-saving opportunities and enhance its sustainability credentials. These factors were important in Lufthansa Group's selection of EAN terminals for their A320 and A220 fleets, to bring consistent in-flight connectivity as efficiently as possible.

Lufthansa Group airlines recently unveiled a new release of its onboard portal, FlyNet^®, which will be accessible on EAN-equipped aircraft. The portal gives passengers the opportunity to login to in-flight connectivity using their Travel ID or Miles and More logins, and to access information from menus for onboard food and beverage, to duty free offers and advertisements.

Don Buchman, GM and VP, Commercial Aviation at Viasat, said: "We're so pleased to continue our long-standing partnership with Lufthansa Group, bringing the consistent, seamless in-flight connectivity solution that passengers want via the European Aviation Network. With so many passengers set to benefit, we're excited to see the impact that EAN has on Lufthansa, SWISS, and Austrian Airlines' fleets – especially in helping them remain at the forefront of offering a superior passenger experience, no matter which intra-European route or aircraft they fly."

David Fox, Vice President, Inflight and Connectivity Services at Deutsche Telekom, said: "EAN is a game-changer in inflight connectivity. The service adapts perfectly to Europe's unique telco infrastructure and provides an exceptional connectivity experience for passengers while they fly above the European continent. EAN also offers a highly compelling business case for carriers due to its lightweight, small and low maintenance equipment."

This further enhances the onboard experience for passengers, as Viasat's 2023 Passenger Experience Survey found that 83% of passengers surveyed would rebook with an airline that offered quality in-flight Wi-Fi, while 81% say Wi-Fi is important to them. This showcases the importance of quality in-flight connectivity to passengers' perceptions of an airline.

About Viasat
Viasat is a global communications company that believes everyone and everything in the world can be connected. With offices in 24 countries around the world, our mission shapes how consumers, businesses, governments and militaries around the world communicate and connect. Viasat is developing the ultimate global communications network to power high-quality, reliable, secure, affordable, fast connections to positively impact people's lives anywhere they are—on the ground, in the air or at sea, while building a sustainable future in space. On May 30, 2023, Viasat completed its acquisition of Inmarsat, combining the teams, technologies and resources of the two companies to create a new global communications partner. Learn more at www.viasat.com, the Viasat News Room or follow us on Facebook, Instagram, LinkedIn, X or YouTube.

Forward-Looking Statements
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, among others, statements that refer to the number of additional aircraft to be equipped with the EAN connectivity solution; the features and performance of the EAN connectivity solution; and the benefits to airlines and passengers of the EAN connectivity solution. Readers are cautioned that actual results could differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ include: risks associated with the construction, launch and operation of the satellite(s) used to supply these services, including the effect of any anomaly, operational failure or degradation in satellite performance; contractual problems; product defects; manufacturing issues or delays; regulatory issues; changes in relationships with, or the financial condition of, key suppliers; technologies not being developed according to anticipated schedules, or that do not perform according to expectations; and other factors affecting the aviation sector generally. In addition, please refer to the risk factors contained in our SEC filings available at www.sec.gov, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements for any reason.

Copyright © 2024 Viasat, Inc. All rights reserved. Viasat, the Viasat logo and the Viasat signal are registered trademarks of Viasat, Inc. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.

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SOURCE Viasat, Inc.

FAQ

What is the ticker symbol for Viasat, Inc.?

The ticker symbol for Viasat, Inc. is VSAT.

What is the European Aviation Network (EAN) in-flight connectivity solution?

The EAN is a combination of S-band satellite coverage and a ground component network that delivers high bandwidth support for streaming, providing consistent in-flight connectivity.

How many aircraft will be equipped with the EAN solution by Lufthansa Group?

Lufthansa Group will equip over 150 additional aircraft with the EAN solution.

What are the benefits of the EAN solution for Lufthansa Group and its passengers?

The EAN solution aims to provide consistent, reliable in-flight connectivity across Lufthansa, SWISS, and Austrian Airlines fleets, enhancing the passenger experience.

What are the key features of Lufthansa Group's onboard portal, FlyNet®?

The FlyNet® portal allows passengers to login to in-flight connectivity using their Travel ID or Miles and More logins, and access information from menus for onboard food and beverage, to duty free offers and advertisements.