JetBlue to Sell Its LiveTV Subsidiary to Thales Group
March 13 2014 - 6:17AM
Marketwired
JetBlue to Sell Its LiveTV Subsidiary to Thales Group
LiveTV Revolutionized the Inflight Entertainment Space, and Now
Pursues Aggressive Growth Strategy
NEW YORK, NY--(Marketwired
- March 13, 2014) - JetBlue Airways (NASDAQ: JBLU) announced today it has
agreed to sell its wholly owned subsidiary LiveTV to Thales Group
for $400 million. The sale which is subject to regulatory and other
approvals is expected to be completed in mid-2014.
LiveTV is the leading provider of live in-flight entertainment
and connectivity systems for commercial airlines. In 2013, LiveTV
and its partner ViaSat introduced Ka-band satellite-driven onboard
connectivity, a game changing technological advancement.
"LiveTV has been an important part of building the JetBlue
experience," said JetBlue President Robin Hayes. "Their ability to
combine market leadership and drive technological advances has
given JetBlue a market advantage in the onboard experience. We now
come to the point where LiveTV's future as a disrupter in the
inflight entertainment and data services space is best served by
pairing with the right partner. We found that partner in Thales,
themselves innovators in the technology space."
"LiveTV is a great strategic fit for Thales," commented
Jean-Bernard Lévy, Chairman and CEO Thales. "It will improve our
positioning in the high growth business of In-Flight Entertainment
and Connectivity. Our aim is to offer the highest performance and
most competitive and flexible connectivity solution to airlines
regardless of their fleet-size, aircraft type or route
structure.
"Passengers increasingly expect broadband internet services at
home, at work and on the move. Airlines want to enable their
passengers to have access to this connected environment within the
aircraft, allowing them to interact with both social media and
professional networks while they travel. Thales will provide
solutions that cater to this need" he continued.
"We look forward to joining the Thales Group," said LiveTV
President Glenn Latta. "We have benefitted greatly from JetBlue's
leadership and guidance, and we are now positioned to further
influence the inflight entertainment, connectivity and data
services space, with Thales' leadership."
Concurrent with the closing of this transaction, JetBlue will
enter into long term agreements with LiveTV to continue providing
support for its live TV and inflight connectivity product, Fly-Fi.
"This transaction, once completed, preserves JetBlue's access to
the most innovative inflight entertainment," said JetBlue CFO Mark
Powers. "At the same time, we believe JetBlue will benefit from
reduced operating costs and capital expenditures related to running
LiveTV as a subsidiary."
About JetBlue AirwaysJetBlue has successfully carved out a niche
among competitors focused on serving the customer who is
under-served by other airlines, by delivering unparalleled value to
customers with its core product offerings, including a first
checked bag free of charge (a), unlimited complimentary in-flight
snacks and non-alcoholic beverages, and a live in-flight
entertainment system with 36 channels of free DIRECTV programming
and more than 100 channels of free XM Satellite Radio at every
comfortable leather seat (b). In addition, JetBlue recently
launched Fly-Fi, its game-changing broadband internet service,
currently offered for free and available on 21 aircraft, with more
being equipped every week. Customers can expect outstanding service
from the friendliest crewmembers in the sky while they kick back
and enjoy the most legroom in coach of any U.S. airline (c).
JetBlue is a leading carrier in New York, Boston, Fort
Lauderdale/Hollywood, Los Angeles/Long Beach, Orlando and San Juan.
JetBlue carries 30 million customers a year to 82 cities in the
U.S., Caribbean and Latin America with an average of 800 daily
flights. With JetBlue, all seats are assigned, all fares are
one-way, and an overnight stay is never required. For more
information please visit JetBlue.com.
About LiveTV LiveTV is the world's leading provider of live
in-flight entertainment and connectivity systems for commercial
airlines. Founded in 1998 in Melbourne, Florida, LiveTV has
maintenance and support locations around the world to serve the
more than 700 aircraft equipped with its products. Current
customers include JetBlue, Frontier, AirTran, Alitalia, Virgin
Blue, WestJet and Azul. For a full listing of products and
partners, or for more information, please visit
www.livetv.net.
About Thales Group Thales is a global technology leader in the
Aerospace, Transportation and Defence & Security markets. In
2013, the company generated revenues of EUR14.2 billion with 65,000
employees in 56 countries. With its 25,000 engineers and
researchers, Thales has a unique capability to design, develop and
deploy equipment, systems and services that meet the most complex
security requirements. Thales has an exceptional international
footprint, with operations around the world working with customers
and local partners.
(a) Free first bag subject to weight and size limits and
exceptions for itineraries including flights marketed or operated
by other airlines.
(b) DIRECTV and XM Satellite Radio service are not available
on most flights outside the continental United States.
(c) JetBlue offers the most legroom in coach, based on
average fleet-wide seat pitch for U.S. airlines.
MEDIA CONTACTSJetBlue Corporate Communications Tel: +1 718 709
3089corpcomm@jetblue.comReservations +1 800 JETBLUE (538
2583)TTY/TDD: +1 800 336-5530www.jetblue.com Thales Europe
Giaime Porcu +33 (0)1 57 77 9218
giaime.porcu@thalesgroup.comUnited StatesLori Montalbano -
Krans+1 949-923-0976lori.krans@us.thalesgroup.com
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