American Plans Expansion of High-Speed Wi-Fi to Nearly 500 Regional Aircraft

Over the next two years, American Airlines said it intends to help even more customers have a consistent and connected inflight experience through the introduction of high-speed Wi-Fi on the dual-class regional aircraft operated on its behalf.

American said it is working to extend its relationship with Intelsat with the plan to install new high-speed Wi-Fi capability on nearly 500 regional aircraft beginning next year.

American currently makes high-speed Wi-Fi available on more than 900 mainline aircraft, with the objective to bring the total number of satellite-connected aircraft to more than 1,400 once the planned updates to regional aircraft are complete.

Airline officials said Inflight connectivity technology continues to evolve rapidly across the airline industry.

The officials said Intelsat’s Electronically Steered Array (ESA) antennae is unique because it is multi-orbit, interoperating on both Intelsat’s family of geo-stationary satellites and on a constellation of Low-Earth Orbit (LEO) satellites, providing low latency high-speed internet connection to American’s customers.

American officials said the new technology will allow the regional aircraft to match fast Wi-Fi speeds available on American’s mainline aircraft.

With the planned purchase of this new technology, American is reinforcing its commitment to provide a consistent and connected experience for customers on all of American’s connectivity-equipped flights with the ability to stream, browse, check email and even log onto VPN while inflight, the officials said.

Weyerhaeuser to Enhance Southern Timberlands Portfolio

Weyerhaeuser Company (NYSE: WY) said it has entered into two distinct agreements with Forest Investment Associates to divest approximately 69,600 acres in Upstate South Carolina for $170 million, and to purchase approximately 60,700 acres of high-quality timberlands in Coastal North Carolina, South Carolina and Mississippi for $163 million.

Key attributes of the transaction:

* Adding high-quality timberlands with attractive timber attributes, including:

Mature, highly productive acreage that is well-integrated with existing Weyerhaeuser timberlands and mill operations.

Fee ownership with 80 percent planted pine acreage and strong site productivity, delivering strong long-term timber returns.

Well-stocked timber inventory producing attractive sawlog mix and expected average harvest of 6.9 tons per acre (or 420,000 tons) annually over the first five years.

Expected average Adjusted EBITDA from timber operations of approximately $130 per acre (or $7.7 million) annually over the first five years.

*Acquiring core timberland acreage at an Adjusted EBITDA multiple of 21x, while divesting less strategic ownership at an Adjusted EBITDA multiple of 47x. (Adjusted EBITDA multiple calculated as purchase price divided by Weyerhaeuser's forecasted 5-year annual average Adjusted EBITDA from timber operations.)

* Opportunity to enhance real estate cash flows and returns on high-optionality coastal assets.

* Structured as a tax-efficient like-kind exchange with minimal transaction costs.

“This transaction represents a unique opportunity to further optimize Weyerhaeuser's Southern Timberlands portfolio with high-quality, highly productive acreage that is well-integrated with our existing operations," said Devin W. Stockfish, president and chief executive officer.

Stockfish added, "As we've demonstrated over the last several years, we are committed to active portfolio management across our unmatched timber holdings, and we remain focused on transactions that improve our cash flow and returns while creating long-term value for our shareholders."

With the transaction, Weyerhaeuser will own or manage more than 870,000 acres of timberlands in North and South Carolina and approximately 1,190,000 in Mississippi.

The company employs more than 1,300 people and has significant operations and infrastructure across the three states, including seven mills, two distribution centers, two tree nurseries and multiple mitigation banks and real estate development projects.

The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2023.

Retail Fundamentals Remain Strong Across State

Key retail performance metrics in South Carolina were stable for the third quarter of 2023 and improved over last quarter, according to a Colliers Commercial Real Estate Research & Forecast Report.

Colliers said that despite delivery of 175,834 square feet, overall vacancy decreased to 2.62 percent with the absorption of 81,520 square feet.

The construction pipeline remained robust with 390,762 square feet expected to deliver by the end of 2023 and a total of 917,819 square feet under construction.

Colliers said lease rates may increase in the fourth quarter with these deliveries as average lease rates increased 3.25 percent from the second to third quarter to $22.71 per square foot.

According to the commercial real estate firm, gross retail sales, population growth and strong performance metrics of South Carolina continue to attract additional residents and wide varieties of businesses.

821 Area Code Coming to Upstate In 2024

The Public Service Commission of South Carolina approved an area code overlay for the existing 864 area code that includes the larger cities of Greenville, Spartanburg, and Anderson, as well as other communities in the northern area of South Carolina.

The area code overlay will establish a new area code of 821.

PSC officials said the new 821 area code will cover the same geographic area as the current 864 area code, and will only affect the assignment of new telephone numbers.

All existing customers will retain the 864 area code and won’t need to change their telephone numbers, the officials said.

Ten-digit dialing will be required by all customers within the area covered by the current 864 and new 821 area codes.

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