Viasat to Bring In-Flight Connectivity to an Additional 40 Aircraft in Korean Air Fleet

Rhea-AI Summary

Viasat, Inc. (NASDAQ: VSAT) has been chosen by Korean Air to provide in-flight connectivity for an additional 40 aircraft, expanding their partnership to a total of 70 aircraft by 2027. This move aims to enhance passenger experience with high-speed Wi-Fi for browsing, social media, streaming, shopping, work, and more.

Insights

Market Research Analyst

The expansion of in-flight connectivity services by Korean Air, in partnership with Viasat, is indicative of broader trends in the airline industry where passenger experience is becoming increasingly differentiated by the digital amenities offered. From a market perspective, this move can be seen as a strategic investment in customer satisfaction and brand loyalty. The decision to equip a significant portion of their fleet with high-speed Wi-Fi caters to the 81% of South Korean passengers who associate quality in-flight Wi-Fi with higher likelihood of rebooking. This could translate into a competitive advantage in a market where customer retention is key.

Furthermore, the integration of Viasat's technology into 70 Korean Air aircraft suggests a substantial contract value, likely to have a positive impact on Viasat's revenue streams over the implementation period. It also reinforces Viasat's position in the market as a leading provider of in-flight connectivity solutions, which could influence investor perceptions and potentially Viasat's stock valuation.

Aviation Industry Consultant

From an operational standpoint, the partnership between Korean Air and Viasat has implications for the airline's service offering and operational costs. High-speed Wi-Fi capability is not just an added amenity; it requires significant investment in terms of equipment, maintenance and potentially increased fuel consumption due to the added weight and drag of the connectivity hardware. However, these costs are likely justified by the projected increase in customer satisfaction and the potential for additional revenue streams through Wi-Fi service fees or enhanced in-flight e-commerce.

Moreover, the timeline for implementation by the end of 2027 suggests a phased approach, which is beneficial for managing the capital expenditure and minimizing disruptions to Korean Air's operations. The gradual rollout allows for the assessment of passenger usage patterns and preferences, enabling Korean Air to refine their digital offerings and marketing strategies accordingly.

Telecommunications Analyst

The announcement of Viasat's expanded partnership with Korean Air underscores the growing importance of satellite communications infrastructure in the aviation sector. Viasat's role in this partnership is not merely as a service provider but as an enabler of a connected ecosystem within the aircraft. With the increasing demand for in-flight connectivity, Viasat's satellite network's robustness and reliability become critical factors for airlines when selecting a connectivity partner.

Furthermore, Viasat's performance in this partnership may serve as a benchmark for future deals in the industry, as airlines worldwide observe the success of the Korean Air implementation. The ability to deliver consistent, high-quality Wi-Fi could set industry standards, potentially influencing future regulatory considerations for in-flight connectivity and satellite communications.

CARLSBAD, Calif., March 20, 2024 /PRNewswire/ -- Viasat, Inc. (NASDAQ: VSAT), a global leader in satellite communications, has been selected to power in-flight connectivity onboard 40 additional aircraft by Korean Air, South Korea's flag carrier.

The latest aircraft set to be connected in the Korean Air fleet will be 40 Boeing 787s, following news shared last year that Korean Air had committed to equipping 30 Airbus A321Neos with Viasat connectivity – its first in-flight connectivity partnership. This announcement will bring the total number of Korean Air aircraft to be equipped with Viasat's connectivity solution to 70, with all aircraft scheduled to enter service by the end of 2027.

By adding connectivity to the cabin across so many aircraft, Korean Air is committing to meeting passenger expectations for increased connectivity while onboard. With the high-speed in-flight Wi-Fi enabled by Viasat, Korean Air passengers will be able to browse the internet, enjoy social media, stream video and audio, shop online, catch-up with work, and more – all from the comfort of their seats.

Kenneth Chang, Executive Vice President and Chief Marketing Officer at Korean Air, said: "Our focus on enhancing passenger experience is crucial to our business – and adding more connectivity to our fleet will be a key step forward in achieving this. Bringing Viasat's reliable, high-speed connectivity to more Korean Air flights means even more of our valued passengers will be able to benefit from exceptional Wi-Fi onboard.

Don Buchman, Vice President and General Manager, Commercial Aviation at Viasat, said: "Korean Air is a world class airline, and we're really pleased to be extending our relationship as they continue to innovate to meet passenger demand for quality in-flight connectivity. We know that passengers around the world want to be connected in-flight, and our robust satellite network brings the reliable connectivity that enables this. We look forward to continuing to collaborate with Korean Air to leverage consistently fast, high-quality Wi-Fi to deliver distinct digital experiences to more of its passengers."

In Viasat's 2023 Passenger Experience Survey, 81% of passengers in South Korea said that quality in-flight Wi-Fi would make them more likely to rebook with an airline. This comes as 80% said being connected to Wi-Fi during a flight is "important" to them – demonstrating the growing demand for in-flight connectivity from passengers.

About Korean Air
Serving the world for more than 50 years, Korean Air is one of the world's top 20 airlines, carrying more than 27 million passengers in 2019, pre-COVID. With its global hub at Incheon International Airport (ICN), the airline serves 111 cities in 40 countries on five continents with a modern fleet of 159 aircraft and over 20,000 professional employees.

Korean Air's outstanding performance and commitment to the highest level of safety and customer service has widely been recognized. The airline has been granted numerous awards including a 5-star airline rating from Skytrax as well as Air Transport World's Airline of the Year and Cargo Operator of the Year awards.

Korean Air is a founding member of the SkyTeam airline alliance, and has grown into one of the largest transpacific airlines through its joint venture with Delta Air Lines.

For more information about Korean Air, please visit www.koreanair.com, Korean Air Newsroom, facebook.com/KoreanAir, instagram.com/KoreanAirworld and Twitter@KoreanAir_KE.

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 U.S. and in other countries of Viasat, Inc. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners. 

Korean Air Contacts:
Global Communications: globalpr@koreanair.com

Viasat, Inc. Contacts:
Scott Goryl, External Communications, PR@viasat.com
Peter Lopez, Investor Relations, IR@viasat.com

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 Viasat and Korean Air's partnership; the introduction of Viasat's IFC service on Korean Air's Boeing 787 and Airbus A321neo aircraft; the availability, capabilities, benefits and performance of Viasat's IFC system; the number and types of planes and the timing to connect the Korean Air fleet. 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; 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.

FAQ

How many aircraft will Viasat provide in-flight connectivity for Korean Air?

Viasat will provide in-flight connectivity for 40 additional aircraft, bringing the total to 70 by the end of 2027.

What benefits will Korean Air passengers have from Viasat's connectivity solution?

Korean Air passengers will enjoy high-speed in-flight Wi-Fi for browsing, social media, streaming, shopping, work, and more.

What percentage of passengers in South Korea in Viasat's survey valued quality in-flight Wi-Fi?

81% of passengers in South Korea in Viasat's survey stated that quality in-flight Wi-Fi would make them more likely to rebook with an airline.

Why is Korean Air adding more connectivity to its fleet?

Korean Air is enhancing passenger experience and meeting increased connectivity demands by adding Viasat's reliable and high-speed connectivity to its fleet.

Who expressed satisfaction with the extended relationship between Viasat and Korean Air?

Don Buchman, Vice President and General Manager, Commercial Aviation at Viasat, expressed satisfaction with the extended relationship with Korean Air.