Inmarsat signs up AirAsia to in-flight broadband service

Satellite communications provider Inmarsat has won a contract from AirAsia to provide its Global Xpress (GX) aviation in-flight broadband service to more than 120 of the Malaysian low-cost carrier aircraft.

The contract was signed through AirAsia's subsidiary ROKKI, and will cover all existing and future Airbus A320 and A330 operated by the group, including its long-haul operator AirAsia X, and would also cover any future deliveries of new aircraft, such as the A350.

Inmarsat president Philip Balaam said, "The scale of this contract, covering more than 120 existing aircraft and one of the industry's largest order books for additional aircraft, showcases our status as a global market leader in advanced in-flight broadband.

"Inmarsat has the fastest growing service uptake in our market, with, following this agreement, more than 1,300 aircraft, expected under signed contracts, both installed and under backlog, for our next generation GX Aviation and European Aviation Network solutions."

The firm said the contract supported its strategy of providing "tailored scalable capacity" by designing, owning and operating a global network of high-throughput satellites and would begin installation during the first half of 2018.

AirAsia will connect to the GX Aviation network, the world's first in-flight connectivity solution, via new JetWave terminals produced by Honeywell Aerospace.

AirAsia chief executive, Tony Fernandes said, "GX Aviation will form the backbone of AirAsia's digital cabin offering. By delivering in-flight connectivity that's indistinguishable from what you get on-ground, our guests will be able to stay connected in ways that matter to them, whether it's streaming movies or music, checking social media, messaging friends or catching up with work emails."

In August, Inmarsat posted a 14.5% decline in its legacy enterprise business for the second quarter, but chief executive Rupert Pearce said at the time he felt the business area held a "strong medium to long-term growth potential" as the group shifted focus towards the Internet of Things markets, including transportation, e-logistics, agriculture, smart cities, mining and construction.

Inmarsat launched two new satellites in the first half, one of which was the fourth for the GX superfast broadband network, and the other marking the first for its EAN services.

In early trading on Wednesday, Inmarsat shares were up 1.5% to 630p.