The Business of Passenger Experience
Gogo plans significant cost cuts as it seeks to shore up its financial position. Facing a financing crunch the company's "Gogo 2020" business plan unveiled this week will see hundreds of millions of dollars cut from cost side of the balance sheet as jobs and programs are dropped from the company.
Nearly two years after the deal was announced the Gogo 2Ku hardware is beginning to show up on KLM aircraft. A pair of A330-300s now carry the kit. The service is not yet active for travelers, but that’s coming soon enough.
Air Canada’s long-haul travelers get a new option for inflight connectivity and it is a good one. The carrier’s 19-strong fleet 777-300ER aircraft now serve up internet with the Gogo 2Ku service on board.
AirBaltic loves its CSeries jets. The Latvian carrier is set to dramatically grow that fleet. Today’s deal with Bombardier, inked just over one year since the first CS300 arrived in Riga, adds at least 30 more of the type to its fleet.
As Alaska Airilnes shifts its aircraft to Gogo's 2Ku offering passengers will see increased bandwidth, hopefully driving an increase in the number online. But a change in the way the product is priced could throw a wrench in those plans.
Sticky 2Ku antennae will cost Gogo north of $25mm to repair or replace, and that's not the only challenge new CEO Oak Thorne faced as he presented his first quarterly earnings call for the inflight connectivity provider.
The newest delivery to Alaska Airlines entered service last week with a special addition on board. Ship N927VA, an A321neo, is now flying throughout the Alaska Airlines network with Gogo’s 2Ku inflight internet service installed. This is the first Alaska Airlines aircraft to operate with the kit.
Following the unexpected transition to a new CEO further management shakeup is hardly unexpected. Gogo took that step this week, announcing three new senior leadership positions in the company.
Gogo has a new CEO. In an abrupt move the company announced the replacement of Michael Small with the current largest shareholder, Oakleigh (Oak) Thorne. This should be an interesting few weeks for the company, particularly with a number of trade shows on the near-term horizon.
How much revenue does the American Airlines fleet contribute to Gogo? What will things look like in 2018 as 400ish planes leave? Here's a look at what I think might happen.
