Back to top

Analyst Blog

A deal between Southwest Airlines Co. (LUV - Analyst Report) and Dish Network Corp. (DISH - Analyst Report) will provide the flyers of the airline free live television service on their own Internet devices including phones, tablets or laptops. This pact calls for Dish Network to pay for the services on over 400 Wi-Fi-equipped jets at the end of the year.

Passengers of Southwest planes can avail various television programs on Fox News Channel, MSNBC, CNBC, Bravo, NFL Network, Food Network, HGTV and Travel Channel, in addition to 75 on-demand shows. Earlier, the airline offered a similar service for $5 per day.

However, this service does not include the passengers’ access of Internet, for which the airline charges $8 per flight. Southwest provides Internet connection to over half of its fleet using Row 44 – a subsidiary of Global Eagle Entertainment Inc.

To make this offer more interesting, Dish will extend 12,500 frequent flier points to Southwest members who sign up for the Dish Hopper Whole Home DVR and home programming scheme. Along with this, the second largest satellite service provider of U.S. after DIRECTV (DTV - Analyst Report) will also offer an Apple Inc. (AAPL - Analyst Report) iPad or a discount of $250 on Hopper subscription.

This initiative is part of Dish’s marketing and promotional strategy of exchanging the service – TV Flies Free – with its advertisements throughout Southwest’s air travel. The promotion would include confirmation emails, airport billboards and 30-second commercials on television.

We believe that the addition of these attractive and novel offers will push Southwest ahead of other carriers and strengthen its position in the global scenario. These will also increase the value and profitability of the company by brining in more customers under its wings.

Southwest currently holds a Zacks Rank #3, implying a Hold rating.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
VASCO DATA… VDSI 14.90 +5.60%
TRIQUINT SE… TQNT 20.39 +5.10%
CHYRONHEGO… CHYR 2.85 +4.78%
RF MICRO DE… RFMD 12.31 +4.68%
RTI SURGICA… RTIX 5.39 +2.86%