Viasat (VSAT) to Deploy IFC Kit in Upcoming Korean Air Fleet
Viasat, Inc. VSAT recently announced that Korean Air has selected Viasat’s industry-leading inflight broadband connectivity (IFC) solutions for its upcoming Airbus A321neo fleet. Per the agreement, Safran Passenger Innovations will provide the inflight entertainment and connectivity hardware and will linefit them along with Viasat IFC solutions.
In today's digital age, reliable inflight Wi-Fi connectivity is becoming one of the differentiating factors for air transit. Airlines that invest in this technology gain a competitive edge by making air travel more convenient, enjoyable and productive for passengers.
A recent study indicates that passengers are increasingly inclined to choose airlines that offer inflight connectivity. Different passengers have varying preferences on how to make the most of their inflight time. Reliable connectivity opens up a world of entertainment features, including streaming movies, music and online shopping. Additionally, it allows passengers to stay connected with their family and friends during the flight. For business travelers, it enables them to optimize their travel time by working on emails, reports and other important tasks.
Owing to all these factors, Korean Air, one of the world’s top 20 airlines, has reportedly signed the largest agreement for inflight connectivity service in North Asia since the onset of the pandemic. The airline is going through a modernization phase where it will incorporate 30 Airbus A321neos in its fleet by 2027. In a bid to solidify its footprint and explore new commercial opportunities, the national carrier decided to leverage Viasat’s robust satellite network, specifically designed to deliver fast and uninterrupted WIFI for a superior inflight experience.
Collaboration with Korean Air can unlock opportunities for Viasat to expand its presence in the Asian aviation market. Successful deployment will serve as a testament to its technological capabilities, enhancing its brand reputation and opening up new avenues for revenue generation.
Viasat is ramping up investments in the development of its revolutionary ViaSat-3 broadband communications platform, which will have nearly ten times the bandwidth capacity of ViaSat-2. ViaSat-3 class of Ka-band satellites are expected to provide enhanced bandwidth with greater flexibility to move and concentrate that capacity virtually anywhere there is demand. The ViaSat-3 constellation is intended to provide high-speed and high-capacity connectivity to expand coverage and help bridge the digital divide in areas with limited internet access.
Furthermore, the growing adoption of inflight Wi-Fi services in commercial aircraft is proving conducive to business growth. Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. It has a competitive advantage in bandwidth economics, global coverage, flexibility and bandwidth allocation, which makes it believe that mobile broadband will act as a profit churner with a significant improvement in in-flight connectivity revenues.
The stock has lost 27.7% over the past year compared with the industry's fall of 15.1%.
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Viasat currently carries a Zacks Rank #3 (Hold).
Motorola Solutions, Inc MSI, carrying a Zacks Rank #2 (Buy) at present, delivered an earnings surprise of 5.62%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 5.58%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure service providers. It develops and services both analog and digital two-way radio, voice and data communications products and systems for private networks, wireless broadband systems and end-to-end enterprise mobility solutions to a wide range of enterprise markets.
Workday Inc. WDAY, currently sporting a Zacks Rank #1, delivered an earnings surprise of 15.38%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 14.40%.
Workday is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, which makes it easier for organizations to provide analytical insights and decision support.
NVIDIA Corporation NVDA, currently sporting a Zacks Rank #1, delivered an earnings surprise of 9.79%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 29.19%.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit or GPU. Over the years, the company’s focus has evolved from PC graphics to artificial intelligence-based solutions that now support high-performance computing, gaming and virtual reality platforms.
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