One of SmartSky’s suppliers is accused of stealing the inflight connectivity company’s intellectual property and trying to sell it as an independent ATG network rather than delivering the contracted goods to the company. This one is gonna get messy, folks.
With the infusion of new cash coming as part of the Intelsat deal Gogo is well-positioned to invest in its updated air-to-ground (ATG) network, branded “Gogo 5G.” And the company has high hopes for increased revenue that network will deliver, both from its Business Aviation customers and from Intelsat. The latter secured a 10-year exclusive contract to resell Gogo’s ATG connectivity to commercial airlines and the (mostly) regional jets flying with the system installed as part of the deal to acquire the Commercial Aviation business.
Intelsat will purchase the Commercial Aviation business from Gogo for a “headline” price of $400 million. Intelsat’s attorney’s announced the deal as part of a hearing at the US Bankruptcy Court this afternoon.
SkyFive is betting big on inflight connectivity in China. The upstart air-to-ground (ATG) network infrastructure provider recently announced a Strategic Technology Partnership with Airbus. The partnership also includes China Mobile as the local mobile telecom provider.
We could learn the fate of Gogo’s Commercial Aviation (CA) business by the end of the month, assuming some details in a recent Intelsat bankruptcy filing play out. The latter filed for approval to increase its Debtor-in-Possession (DIP) funding as part of a transaction it hopes to consummate by 31 August.
The 2020 bonus plans at Gogo will look a bit different than in prior years. A handful of executives are in line for a big score thanks to the planned sale of the Commercial Aviation segment, while regular employees now have a new target to realize their annual reward.
For more than two years Gogo teased the idea of splitting the company between its Commercial (airline) and Business (private) Aviation segments. The rumblings ebb and flow, but by mid-July the tone of the conversation was undeniable. Now the company confirmed the news. Gogo has retained outside advisors to assist with the formal process to “evaluate our strategic options” for the business.
Was Viasat’s recent deal to secure $175mm in new capital just a matter of convenient timing? Or is there a specific plan for the cash? CEO Mark Dankberg got into some of the possibilities today, including potential inflight connectivity opportunities, while clearly leaving the door open for many more options to come.
What does it take to put a new low earth orbit (LEO) satellite constellation into service? The myriad technical challenges are not to be underestimated, of course, but a lot of it comes down to money. In the case of the Amazon Kupier project that’s a $10 billion commitment.
Gogo is eliminating 143 fulltime positions, predominantly from the Company’s Commercial Aviation business. The move aims to “align the scale of its organization with current demand for aviation connectivity services” as the current industry downturn continues to impact its revenue, especially in the commercial aviation segment.