A new press release from GXI announces the launch of ground services delivered through it onboard retail platform.
This could be the "killer app" for the GXI retail platform because it is a natural extension of the travel experience, and there is clear value add to passengers. As most business travellers know, there is nothing worse than trying to figure out how to get from the airport to the first meeting after a five hour flight. Destination ground connections are an easier sale by flight attendents who perceive them as a way to improve the travel experience of "their" passengers. If executed well, uptake should be strong.
The company has been building multiple partnerships with ground service vendors and claims to be able to deliver to 50 of the top airports in the world, which is clearly a good start.
This announcement should be considered more evidence of execution, which should satisfy the horde of analysts that cover this stock. As a result, estimates and targets are likely to be maintained.
The biggest catalyst for the stock continues to be how quickly it can deploy its backlog in comparison to analyst expectations, and how effectively it can dominate the segment by signing up more carriers and merchandisers over the next few quarters.