What do you do when terrestrial airwaves are crowding your profit potential? Take to the skies. That's what DISH Network did when it inked a deal with Southwest Airlines , Motley Fool contributor Tim Beyers says in the following video.
The two are providing free Wi-Fi to Southwest passengers who wish to watch TV on an iPad or iPhone while in flight. Use other services, such as email, and it'll still cost you $8 for the trip. More than 400 Southwest planes are equipped to offer Wi-Fi service as of this writing. Travelers may be inclined to pay up for full access after taking advantage of DISH's lead-in, Tim says.
Either way, the deal comes at a good time for Southwest. Revenue growth has slowed to just 1.1% over the trailing 12 months as load factor (i.e., the percentage of all seats filled during flights) persists at about 80%. Full aircraft won't necessarily drive revenue as much as executives would like. Growth is going to have to come from new services, such as onboard Wi-Fi.
Do you agree? Have you tried free Wi-Fi on Southwest? Leave a comment to let us know what you think of the service and where you stand on both stocks right now.
Think the days of $100 oil are gone? Think again. In fact, the market is heading in that direction now, and that's trouble for airline stocks such as Southwest. But for investors that are positioned to profit from the return of $100 oil, it can't come soon enough. To help investors get rich off of rising oil prices, our top analysts prepared a free report that reveals three stocks that are bound to soar as oil prices climb higher. To discover the identities of these stocks instantly, access your free report by clicking here now.
The article DISH Network's Sky-High Strategy Is a Huge Win for This Stock originally appeared on Fool.com.
Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends DirecTV and Southwest Airlines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.