Honeywell’s GoDirect bags new client
On December 10, 2018, Honeywell (HON) announced that it would deploy its GoDirect ground solution to Swissport International for five years. GoDirect ground services will be implemented across all of Swissport International’s global operations. Swissport selected GoDirect after evaluating its benefits following Honeywell’s demonstration in five of its ground handling stations. However, HON didn’t disclose the financial aspects of the deal.
HON’s GoDirect Ground solution will allow Swissport to connect the ramps used at airports and provide insight into the real-time activity of ground-based equipment. Thus, this solution could help to improve efficiency and in turn reduce congestion, fuel, and long-term capital expenditure.
Kristin Slyker, Honeywell’s vice president for Connected Aircraft, said, “GoDirect Ground software and services will enable ground handlers like Swissport to drive transformation creating next-generation efficiency, visibility, and cost savings. Savings on fuel and maintenance costs are just some of the initial benefits that this technology can deliver to ground handlers around the world. Ultimately, true integration of ground operations with airport and airline processes is now a real possibility driving even greater opportunities for the creation of value for everyone that flies.”
HON stock was marginally down by 0.55% and closed at $137.95. The decline probably had more to do with a couple of law firms reminding shareholders about the filing of a class action lawsuit against Honeywell. On a year-to-date basis, HON has declined by 6.1% and has underperformed the broader market S&P 500 (SPY). HON’s peers General Electric (GE), Textron (TXT), and United Technologies (UTX) have declined by 60.3%, 9.5%, and 6.4%, respectively. HON’s 14-day relative strength index is at 32, which is very close to the position of being oversold.