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Viasat Offers Ka-Band Connectivity to EL AL Israel Airlines

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EL AL Israel Airlines recently announced that it has launched a fast, reliable commercial in-flight Wi-Fi service, powered by Viasat Inc. (VSAT - Free Report) , in its aircraft fleet. The high-capacity Ka-band inflight connectivity service will enable non-stop business communication and high speed in-flight connectivity experience for fliers. To date, EL AL has equipped 15 of its aircraft with Viasat's latest equipment, which offers high-speed connectivity to EL AL's Boeing 787 Dreamliners, Boeing 737-900 aircraft and Boeing 737-800 planes.

Viasat's high-speed Ka-band inflight connectivity service will enable EL AL passengers to stream more internet content and allow flight crews to remain connected for enhanced passenger service. Notably, while flying on TransAtlantic routes, the company’s in-flight Wi-Fi system will connect to the ViaSat-2 satellite that has the highest Ka-band capacity over the Atlantic Ocean. This will provide passengers a high performing in-flight connectivity from across North America and the Atlantic Ocean to Europe. Notably, EL AL has decided to offer three internet service packages to passengers — “Basic”, “Social” and “Business”.

Existing Business Scenario

Viasat has been serving the business aviation industry for a decade. With the surging popularity of high-engagement in-flight connectivity and high passenger engagement, leading airline companies are scouting 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 satellites providers that run on incumbent business models. Also, as the company has a competitive advantage in bandwidth economics, global coverage, flexibility and bandwidth allocation, it believes that mobile broadband will act as a profit churner.

Recently, Viasat extended its partnership with Honeywell International Inc. (HON - Free Report) to offer high-speed Ka-band in-flight service to large and mid-cabin business jet passengers. The deal enables fliers to experience business and entertainment even at 40,000 feet above the ground. The company is seeking opportunities to extend broadband satellite mobility to rotary wing aircraft, as it is a large addressable market that can emerge as a key profit churner.

In the past three months, Viasat has outperformed the industry, recording a gain of 10.4% compared with 6.1% growth for the latter.

Further, of late, the company has been ramping up investments in the development of its revolutionary ViaSat-3 broadband communications platform, which will boast roughly 10 times the bandwidth capacity of ViaSat-2. Solid market traction of ViaSat-1 satellites, coupled with strategically planned ViaSat-2 and ViaSat 3 satellites, are expected to provide Viasat with a solid competitive edge over its peers, thereby bolstering growth in the long run.

Key Picks

A couple of top-ranked stocks from the same space are Comtech Telecommunications Corp. (CMTL - Free Report) and Juniper Networks, Inc. (JNPR - Free Report) . While Comtech Telecommunications sports a Zacks Rank #1 (Strong Buy), Juniper Networks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Comtech Telecommunications surpassed estimates in each of the trailing four quarters, with an average positive earnings surprise of 123.70%.

Juniper Networks surpassed estimates thrice in the preceding four quarters, with an average positive earnings surprise of 3.35%.

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