ViaSat slides after United Airlines inks Starlink deal with SpaceX

Shares of Viasat (VSAT), a provider of high-speed satellite broadband services and secure networking systems, are lower in early trading after United Airlines (UAL) announced it has “set a new standard of inflight connectivity by signing the industry’s largest agreement of its kind with SpaceX to bring Starlink’s fast, reliable Wi-Fi service to the airline’s mainline and regional aircraft fleet, for free.” United is “the largest airline across both the Atlantic and Pacific and will be the first carrier in the world to commit to offering Starlink service at this scale,” according to the airline, which noted that testing begins in early 2025 with the first passenger flights expected later that year. William Blair analyst Louie DiPalma has said that Viasat will still be the aviation market share leader five years from now given the slow-moving nature of the industry, but adds that Starlink is “positioned to have the highest aviation market share over the next decade as this landmark deal will likely lead to other wins.” Following the news, shares of Viasat are down $2.02, or 13.5%, to $13.00, while Gogo (GOGO), another player in the aviation broadband market, are off pre-market lows to be down 2% to $7.30.