Inflight connectivity provider Gogo delivered a strong quarter in Q1 2019, topping analyst earnings estimates. The numbers also show a few areas that remain critical for long-term success and are not necessarily moving in the right direction as quickly as could be expected. The company's "growth engine" of global carriers in particular raises questions, some of which the company declined to answer, about where the improvements will really occur.
Oakleigh Thorne
Pilatus PC-12 NG gets Gogo line fit option
Pilatus PC-12 owners have another option to consider when buying their new plane. The OEM teamed up with Gogo to make the AVANCE L3 inflight connectivity and entertainment platform available as a factory installed option for the turboprops.
PaxEx Premium: Finding future financing
Gogo appears to have solved its most significant short-term challenge, with a $900mm debt offering lined up to provide five years of breathing room as the company inches towards a positive free cash flow.
PaxEx Premium: Mahata joins the IFC financing fray
Is there a secret to better financing of inflight connectivity solutions? Indonesia's Mahata Aero Technology (MAT) is the latest to take that plunge, with an arrangement to cover the costs for Garuda and Citilink. The deal relies on partnerships with suppliers Lufthansa Systems, Lufthansa Technik and Inmarsat, along with what MAT Executive Director Iwan Setiawan describes as "a unique business model" that is proving successful in its preliminary state.
PaxEx Premium: Seeking a structural shift
Gogo's operational structure is set to change. CEO Oakleigh Thorne has long hinted at adjustments he wants to make. The shifts were previously associated with discussions around potential change of ownership or debt refinancing. While those options remain on the table the moves will be made now, PaxEx.Aero has learned. Company employees were informed of the changes this week.
PaxEx Premium: More ZTE headaches for ATG connectivity
The on again, off again drama of Chinese telecom manufacturer ZTE flared up again this week. Reports from the White House suggest that Huawei and ZTE could be the target of a new Executive Order banning the sale of systems from those companies in the United States. It would be invoked under the International Emergency Economic Powers Act, allowing the president to regulate commerce in response to a national emergency. And it could significantly impact the future of Gogo's Air-to-Ground data network, especially the ATG-NG development.
Gogo claims a win in de-icing fluid battle
Cautious but confident, Gogo issued a report this morning declaring success in mitigating the deicing fluid issues on its 2Ku inflight wifi antenna hardware. More than 2,600 potential deicing events showed zero affected aircraft so far this winter.
Digging in to Global Connectivity Revenues
A pair of recent earnings reports left open questions about just how many aircraft are generating how much inflight connectivity revenue. Both Gogo and Inmarsat clarified those positions, providing better context around their numbers.
PaxEx Premium: Digging in to Global Connectivity Revenues
A pair of earnings reports last week left open questions about just how many aircraft are generating how much inflight connectivity revenue. Both Gogo and Inmarsat clarified those positions, providing better context around their numbers.
An end to cheap* WiFi for airlines?
Maybe it has never truly been cheap for passengers, but airlines historically took advantage of great deals from suppliers to secure inflight wifi connectivity solutions relatively inexpensively. As those vendors now seek financial stability more than market share a shift is underway. Is the era of cheap wifi over? (And did it ever really exist?!?)