Honeywell International Inc.
(
HON
) entered into an agreement with Inmarsat to provide business,
commercial, and government aviation customers with in-flight
connectivity services wherever they go. In this deal, onboard
hardware connecting users to Inmarsat's Global Xpress™ network will
be developed, produced and distributed by Honeywell.
Over the next twenty years, the contract will generate $2.8
billion for Honeywell through sales of hardware, customer service,
and maintenance to airlines, government entities and original
equipment manufacturers (OEMs). Inmarsat's Global Xpress is planned
to be launched in 2013 and will be available globally for
commercial, business aviation, and government customers in
2014.
Honeywell's satellite communication capabilities along with
Inmarsat's Global Xpress connectivity will help travelers in any
part of the world to do real-time social media, video conferencing
and multi-media presentation development while in-flight. The
passengers can get quick and reliable connectivity, even while they
are flying through oceans, on their iPads, smartphones, tablet
devices, and laptops.
The market for airborne connectivity solution market is
expanding rapidly and Honeywell enjoys a leading position in this
market.
Honeywell's short-cycle businesses as well as its commercial
aerospace spares and residential and commercial retrofit businesses
are performing impressively well and are expected to support the
company's future growth outlook. However, any change in the U.S.
government's defense and aerospace funding could adversely impact
sales of Aerospace's defense and space-related products and
services.
Based in Morris Township, N.J., Honeywell International Inc. is
a Fortune 100 company providing technical and manufacturing support
to customers worldwide with aerospace products and services;
control technologies for buildings, homes and industry; automotive
products; turbochargers; and specialty materials. The major
competitors of Honeywell are
BorgWarner Inc.
(
BWA
),
United Technologies Corp.
(
UTX
) and
Johnson Controls Inc.
(
JCI
).
We maintain an Outperform rating on Honeywell, with a Zacks #1
Rank (Strong-Buy recommendation).
BORG WARNER INC (
BWA
): Free Stock Analysis Report
HONEYWELL INTL (
HON
): Free Stock Analysis Report
JOHNSON CONTROL (
JCI
): Free Stock Analysis Report
UTD TECHS CORP (
UTX
): Free Stock Analysis Report
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