HAMBURG, Germany - AJet has chosen a collaborative solution for its in-flight connectivity (IFC) services, engaging Hughes Network (LON:NETW) Systems, TCI, and Turksat to provide a comprehensive system across its fleet of over 120 aircraft. The partnership aims to deliver advanced Wi-Fi services to passengers, leveraging the expertise of each company in their respective domains.
Hughes, a subsidiary of EchoStar Corporation (NASDAQ:SATS), will furnish the equipment and management capabilities for the IFC solution. TCI will contribute its aircraft interior integration skills, and Turksat will supply the satellite connectivity required to enable the service. This alliance is designed to offer AJet customers a superior in-flight Wi-Fi experience.
Reza Rasoulian, Senior Vice President at Hughes, emphasized the company’s dedication to delivering reliable connectivity to the aviation industry and expressed pride in the partnership's potential to elevate AJet's passenger experience. TCI and Turksat echoed this sentiment, highlighting their enthusiasm for setting new standards in in-flight connectivity and providing exceptional Wi-Fi service in the skies.
This announcement follows a recent move by Delta Air Lines (NYSE:DAL) in November 2023 to select Hughes for enhancing Wi-Fi services on more than 400 aircraft, indicating a growing trend among airlines to upgrade their IFC offerings.
Hughes Network Systems is known for its broadband equipment and services, including the HughesNet internet service and the Hughes JUPITER System, which powers global internet access. The company boasts a significant share of the global satellite terminal market, serving a wide range of customers from consumers to governments and airlines.
The information in this article is based on a press release statement from Hughes Network Systems.
InvestingPro Insights
As Hughes Network Systems, a subsidiary of EchoStar Corporation (NASDAQ:SATS), continues to expand its footprint in the in-flight connectivity (IFC) sector, recent data from InvestingPro provides insights into the company's financial health and market perception.
With a market capitalization of approximately $5.01 billion, EchoStar presents a noteworthy scale in the satellite and communication services industry. Despite the challenges, three analysts have revised their earnings upwards for the upcoming period, reflecting potential optimism in the company's future performance.
An InvestingPro Tip highlights that EchoStar is trading at a low Price / Book multiple, currently standing at 0.25 as of the last twelve months ending with Q1 2024. This can often be interpreted as the market valuing the company's assets conservatively relative to its share price. Moreover, EchoStar has experienced strong returns over the last three months, with a 40.81% increase, which may indicate growing investor confidence in the company's strategic initiatives, such as the partnership with AJet.
It is important to note that EchoStar operates with a significant debt burden and is not expected to be profitable this year, as per InvestingPro Tips. Moreover, the company's short-term obligations exceed its liquid assets, which could pose liquidity risks. For readers interested in a deeper analysis, InvestingPro offers additional insights and metrics on EchoStar, and users can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 14 additional InvestingPro Tips listed on the platform, offering a comprehensive view of EchoStar's financial and market position.
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