The trial will let China Air passengers connect to the Internet with approved devices on a 777-200 aircraft sometime in 2014. Global Eagle will equip the plaesn with its Ku-band satellite service, and provide support for aeronautical certifications, training, and program management.
The two companies are currently in the process of gaining all required authorizations to bring the service to the 777-200 aircraft.
"We are honored Air China has selected Global Eagle to support such an important program for the airline," Global Eagle CEO John LaValle said in a press release. "As China's Flag Carrier, Air China is known around the world for their superior and innovative services, and Global Eagle appreciates the wonderful opportunity to work with them on providing their newest service enhancement to benefit passengers."
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TheStreet Ratings team rates GLOBAL EAGLE ENTERTAINMENT as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about its recommendation:
"We rate GLOBAL EAGLE ENTERTAINMENT (ENT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins."