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Viasat (VSAT) to Power In-Flight Connectivity in Airshare

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Viasat Inc. (VSAT - Free Report) recently secured a prime contract for Ka-band satellite in-flight connectivity (IFC) solutions from private airline operator Airshare for an undisclosed amount. The improved IFC services will offer enhanced Internet capabilities with best-in-class in-flight entertainment options to entice customers and will likely contribute to the uptrend in leisure air travel demand.

Per the deal, Airshare will use Viasat’s Ka-band IFC solutions in Bombardier Challenger 350 aircraft. It will also be deployed in Bombardier Challenger 3500 aircraft that are likely to be delivered next year. The solutions will enable high-quality, high-speed Internet and video streaming service on the personal electronic device of users to make air travel more digitally accessible and seamless.

Viasat’s Ka-band solutions enable business jet customers to enjoy high-speed Internet connectivity from takeoff to touchdown. It empowers aviation clients to reinforce their IFC investments and helps customers stay connected with smooth web browsing and streaming services. Equipped with unrivaled speed and quality, Viasat’s Ka-band service has been specifically designed to meet accretive demand for data backed by next-gen business applications. The Ka-band leverages global bandwidth to provide avant-garde Internet service with best-in-market pricing to boost the competitiveness of the business jet market.

The surging popularity of high-engagement IFC solutions has compelled leading airline companies to scout for new ways to utilize Viasat’s high-capacity satellite solutions to maximize passenger satisfaction. The company’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. With an advanced level of Internet connectivity, Airshare will offer customers an opportunity to stream all types of video content and seamlessly access Wi-Fi aboard. In addition, it is likely to sow the seeds for future entertainment enhancements and personalization on customer seatback screens.

Viasat’s Satellite Services business is progressing well, with key metrics including steady growth of ARPU (average revenue per user) and revenues showing impressive growth. ARPU is growing on the back of a solid retail distribution network, accounting for a growing proportion of high value and high bandwidth subscriber base. Further, the growing adoption of in-flight Wi-Fi services in one of the fastest growing private airline operators like Airshare is benefiting the business.

The stock has lost 21.4% over the past year, while the industry has declined 3.8%. Nevertheless, we are impressed with the inherent growth potential of this Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

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