Southwest Airlines Strikes Connectivity Agreement with Global Eagle Entertainment

Southwest Airlines said late Tuesday it has entered into an agreement to extend its use of Global Eagle Entertainment’s (ENT) Airconnect connectivity system and services. The carrier plans to retire its non-WiFi-equipped 737-300 Classic aircraft and introduce the new Boeing (BA) 737-8 (MAX). Financial terms weren’t provided.

Separately, Global Entertainment said in a regulatory filing that the deal extends the agreement through 2025 and includes full-term commitment for live television services. It also said that it includes a transition in mid-2017 to monthly recurring charges per aircraft for Wi-Fi and TV and assumes an additional rate card for ancillary services.
ENT closed higher nearly 20% on Tuesday.