Southwest Airlines Co.
) is extending free in-flight, live TV service to passengers who
watch on-demand TV on their devices in collaboration with
Dish Network Corp.
). The live TV service, which began in 2013, will now include up
to 20 channels and 75 on-demand programs by the end of this year.
We believe the new collaborative effort will enable Southwest
Airlines to win more passengers, which is imperative for its
According to reports, nearly 440 planes of Southwest Airlines
are equipped with Wi-Fi connectivity that will enable DISH
Network's programming on the flight. The company charges around
$8 per day to provide WI-Fi access on board to passengers.
As a result, the more that passengers access the live TV
service by Dish, the better will be the prospect of ancillary
revenue generation by Southwest. As per the deal, Dish can
utilize the loyalty-program points offered to passengers by
Southwest as bonus to those who sign up for the live TV
Southwest Airlines is focused on a number of initiatives to
increase revenues and reduce costs over the next three years. The
company is expected to report strong revenues and earnings for
full-year 2013 based on the All-New Rapid Rewards program and
increased ancillary product offerings such as EarlyBird check-in,
fleet modernization effort and pet fees. Southwest is also adding
novel features to its services and introducing products, which
are enhancing its value and profitability.
Furthermore, Southwest targets introducing a new reservation
system based on international reservation technology by 2014.
These actions are expected to contribute the most to the planned
$1.1 billion revenue increase in 2013 from last year.
Southwest Airlines currently carries a Zacks Rank #1 (Strong
Other stocks in this sector include
Consolidated Airlines Group, S.A.
), which has a Zacks Rank #1 (Strong Buy) and
Air France-KLM SA
) that has a Zacks Rank #2 (Buy).
AIR FRANCE-ADR (AFLYY): Get Free Report
DISH NETWORK CP (DISH): Free Stock Analysis
INTL CONS AIRLN (ICAGY): Get Free Report
SOUTHWEST AIR (LUV): Free Stock Analysis
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