Viasat Chosen To Power Inflight Connectivity on Icelandair's New Airbus Aircraft
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Insights
In the context of airline industry competitiveness, the announcement by Viasat, Inc. regarding its partnership with Icelandair to provide high-speed Wi-Fi on new Airbus aircraft is a strategic move that could influence customer loyalty and competitive differentiation. Airlines are increasingly leveraging technology to enhance passenger experience, which can lead to higher customer satisfaction and retention rates. The ability to offer fast, reliable Wi-Fi, especially with the capability for streaming, can be a deciding factor for passengers when choosing an airline, particularly for business travelers who need to stay connected.
From a market perspective, this collaboration could potentially increase Icelandair's market share in the transatlantic and European routes by attracting tech-savvy travelers. Additionally, Viasat's satellite connectivity service, with its high throughput capacity and flexible demand response, suggests a scalable solution that can adapt to peak usage scenarios, which is critical for maintaining service quality during high-traffic periods. This could result in positive customer feedback and strengthen both companies' brand reputations.
Investors and stakeholders in the aviation and communications sectors may view this development as an indicator of Viasat's growth potential and market penetration capabilities. The ability to secure contracts with airlines for cutting-edge technology deployments can lead to increased revenue streams and a stronger position in the satellite communications market. By expanding its service offerings to a new fleet of aircraft, Viasat is diversifying its portfolio and demonstrating the scalability of its technology.
For Icelandair, the investment in advanced Wi-Fi technology could translate into higher ancillary revenues as passengers may be more inclined to purchase Wi-Fi packages during flights. This could have a beneficial impact on Icelandair's financial performance by contributing to a diversified revenue model that is less reliant on traditional income sources such as ticket sales. The timing of the fleet delivery and service commencement in Q4 CY 2024 will be a period to watch for potential impacts on financial performance indicators for both Viasat and Icelandair.
The integration of Viasat's inflight Wi-Fi solution into Icelandair's new Airbus fleet represents a significant advancement in inflight services, which is a critical aspect of airline industry competition. The decision to equip the first Airbus aircraft operated by Icelandair with such technology underscores the importance of digital transformation in the aviation sector. The enhanced passenger experience through high-quality connectivity aligns with broader industry trends, where airlines are investing in onboard amenities to differentiate themselves.
Furthermore, the collaboration between Viasat and Icelandair is reflective of a broader industry shift towards partnerships between airlines and technology providers. Such collaborations are essential for airlines to stay ahead in a market where passenger expectations are constantly evolving. The ability to provide a seamless and content-rich Wi-Fi experience can also improve airline operational efficiencies by enabling real-time communications between crew and ground staff, which can enhance overall flight operations and safety.
Fast, Streaming Wi-Fi to Further Enhance Passenger Experience Onboard the New Fleet
To support Icelandair's passenger experience goals, Viasat's satellite connectivity service will be configured to provide a high-quality, fast online experience on all routes it serves, including streaming entertainment, and real-time productivity tools, keeping passengers and crew connected throughout the flight.
While providing fast in-flight connectivity across popular flight corridors and busy airport hubs, Icelandair will benefit from Viasat's focus on serving the aviation market – which it does through a combination of high throughput satellite capacity and the ability to flex that capacity, to meet demand where it peaks and is most concentrated. Thanks to this, together Viasat and Icelandair can provide a consistently high quality, high-speed, and content-rich in-flight Wi-Fi experience, even during times of intense demand.
"For several years now, we have enjoyed a great partnership with Icelandair while servicing its complete Boeing 737 MAX fleet," said Don Buchman, VP and GM, Commercial Aviation at Viasat. "We understand the patterns of Icelandair's operation and passenger demand for in-flight Wi-Fi, and we are excited to extend this experience and trust to include fast and resilient connectivity on the new Airbus aircraft."
"By expanding our high-speed streaming Wi-Fi offering to the new aircraft, we are doubling down on the state-of-the-art connectivity that has become a highly sought-after element of the Icelandair passenger experience," said Helga Huld Bjarnadóttir, Director Product and Service Management, Icelandair. "Viasat has proven to be an innovative and trusted partner for how we approach the future of Wi-Fi at Icelandair, and we look forward to continuing this into the future."
For more information about Viasat's in-flight connectivity solutions, please visit the Company's Commercial Aviation page at vsat.co/commercial-aviation
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. In May 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.
Copyright © 2024 Viasat, Inc. All rights reserved. Viasat, the Viasat logo and the Viasat Signal are registered trademarks in the
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 related to Viasat and Icelandair's relationship; the introduction of Viasat's IFC services on Icelandair's new and existing aircraft; the enhanced internet experience passengers and crew can expect; the availability, capabilities and performance of the Viasat in-flight internet equipment, and the ability to direct capacity to demand. 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: our ability to successfully implement our business plan for our broadband services on our anticipated timeline or at all; 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 Viasat's SEC filings available at www.sec.gov, including Viasat's 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. Viasat undertakes no obligation to update or revise any forward-looking statements for any reason.
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SOURCE Viasat, Inc.
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