Mobile satellite communications firm Inmarsat (ISAT) has added Lufthansa’s Eurowings fleet to its Global Xpress (GX) in-flight broadband network, the first low-cost carrier to sign-up.
Shares in the midcap company gain 2.4% to 754p.
Earlier this month, Shares wrote about Inmarsat’s investment project, where it sealed deals with Singapore Airlines, Lufthansa, Air New Zealand and Jazeera Airways.
Recent deals by Inmarsat in the aviation sector bode well for the GX project, which is aiming to deliver annualised revenues of $500m by 2020.
GX is the world’s only in-flight connectivity solution that provides high-speed global coverage through a single operator. It will be equipped on 69 Airbus A320s in the Eurowings fleet with the option to add more aircraft.
The broadband solution can also be integrated with existing in-flight entertainment system based on Lufthansa BoardConnect platform.
The first installations have been completed by Lufthansa Technik with testing due to start in 2017. All aircraft in the deal are expected to be fitted by mid-2017.
Inmarsat says the contract with Lufthansa is part of a 10-year strategic agreement. Installation and testing is currently underway for deployment of GX on over 30 Austrian Airlines’ aircraft.
