• April 2 2020

    For those in the In-Flight Connectivity (IFC) value chain, one of the first priorities related to dealing with the COVID-19 pandemic is how to deal with existing contracts that in almost all cases have been voided connected aircraft are grounded. Most, if not all, airlines are unlikely to be in a position to pay even the smallest portion of the contracted IFC fees without planes in the air and with very little room for negotiation. This will very quickly hit service providers, especially those that have ongoing fees to pay to capacity owners. Even if the spread of COVID-19 is brought under control in the coming weeks, it is difficult to envision air travel demand returning to normal in 2020. We’re not talking about a short-term fix, but instead looking at renewed terms between all parties, perhaps an alternative approach to the long-term business model, and the possibility of vendors collapsing under the financial burden.

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