Guru Gowrappan: Yes. I think one other point I would add, Ric is, if you look at what I mentioned on CapEx, you said FY24, 1.7 billion and the range for ’25, 1.4 to 1.5. And then as you know, big set number of satellites are getting done in the next few years as you heard from Mark. So we do expect FY26 to come down as we launch these satellites so from a broader guidance perspective.
Mark Dankberg: I mean on an absolute dollar perspective.
Guru Gowrappan: Yes.
Ric Prentiss: Okay. And we look forward to the Investor Day coming up at March as well?
Mark Dankberg: Yes. We will.
Operator: The next question comes from Chris Quilty, Quilty Space.
Chris Quilty: Investor Day in Carlsbad or New York?
Mark Dankberg: New York.
Chris Quilty: Okay. Carlsbad is nicer, but New York is easier to get to. Question for you, the number of aircraft net adds looked a little light in the quarter. Is that primarily just seasonal or timing? And can you give us the thought of kind of what to expect on a go forward net add rate, either in the back half of the year or going into next year? And then a broader question on the IFC, just what’s the general pipeline looking like now in terms of aircraft or airlines that are new to IFC still coming on board. Is it a strong pipeline? Has there been weakness because of interest rates or fuel prices or just general temperament of the market?
Mark Dankberg: Okay. On the first part, I’d say there are two, I mean, if you just look from a macro perspective, there have been two kind of drags on installs, from the airline’s perspective. One is the delivery rates of new aircraft, which have been kind of behind schedule from both of the major OEMs. And we’ve done well on new lines fit contracts. And so the line fit, the line fit, which is driven by aircraft deliveries, that’s lower than lower. I mean, if you just look at the OEM’s delivery issues and that you can kind of gauge how that would be allocated among the different airlines, some of whom are big customers of ours. And the other one has been, just the fill factor on existing flights, which has kind of, still sort of discourage the airlines from we’re slowed down some of the retrofits on the existing fleet.
And I think there’s some of that is seasonal. So on the one hand, when Shawn mentioned seasonality before for the invite space, if that part’s good for us because, more passengers and it’s driven more demand, and it’s been good for revenue, but it has slowed down installs a little bit. The backlog’s still, really strong. And we’d say that the pipeline of new airlines is good. I think that the kind of way to put it is that the U.S. market has been probably the most forward leaning on in flight connectivity. I think that it’s also becoming clear that there’s monetization strategies, right. That it’s not just, and it doesn’t have to be just an expense for the airlines. And so that is really drawing in a lot of interest from airlines that maybe were on the sidelines before.
And if they can both get the amenity and figure out how to better monetize it. That’s a good combination. And I think that is spreading more globally.
Chris Quilty: Clarification, the CapEx guidance for next year, did you say the 1.4 to 1.5 includes a possible provision for an I6 replacement?
Mark Dankberg: Yes, that’s correct.
Chris Quilty: And timing wise, I guess, you’ve got two modern L-band satellites, the I6F1 and the Alpha Bus, The I4s or 17 years old. If you get an order in next year on that satellite, we’re looking at three years. Does that leave enough time wise coverage on the L-band capacity given the age of the legacy satellites?
Mark Dankberg: Yes.
Chris Quilty: Running good on fuel?
Mark Dankberg: Yes. And you know we also have, besides, I mean, besides the existing fleet, we also remarks had, I think, right around the time of the acquisition, announced a fleet of 3I8 satellites that’ll be arriving kind of in that same time frame, maybe a little bit earlier.
