Gogo Receiving Unprecedented Demand for Gogo Galileo HDX
Rhea-AI Summary
Gogo Business Aviation (NASDAQ: GOGO) is experiencing unprecedented demand for its new global broadband Low-Earth-Orbit (LEO) satellite service, Gogo Galileo HDX. The demand surpasses that of Gogo AVANCE L5, launched in 2017. Gogo's dealer network has contracted for 27 Supplemental Type Certificates (STCs), opening up a market of over 18,000 aircraft globally.
Flight tests on a Challenger 300 are progressing as planned. Gogo continues to accept purchase orders for HDX, which is designed as an easy upgrade to any AVANCE system. The service, backed by Eutelsat OneWeb's LEO network, is scheduled to launch later this year. A special promotional rebate of $25,000 is available for a time to current Gogo customers operating legacy air-to-ground systems when installing AVANCE SCS and HDX.
Positive
- Unprecedented demand for Gogo Galileo HDX, surpassing previous product launches
- 27 Supplemental Type Certificates (STCs) contracted, unlocking a market of over 18,000 aircraft globally
- Flight tests of Gogo Galileo HDX system performing as planned
- Special promotional rebate of $25,000 offered to current customers for upgrading to AVANCE SCS and HDX
Negative
- None.
News Market Reaction
On the day this news was published, GOGO gained 7.01%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Production More Than Doubled to Meet Sales Projections
"The response from the industry for Gogo Galileo HDX is at a fever pitch – there's been a tidal wave of demand as we rapidly approach commercial launch," said Sergio Aguirre, president and chief operating officer for Gogo. "It's clear the market is hungry for true aviation-grade LEO satellite broadband connectivity for aircraft of any size around the globe."
The demand for Gogo Galileo HDX is greater than it was for Gogo AVANCE L5, which launched in 2017 and quickly became the most widely adopted and fastest-selling inflight connectivity system in business aviation history.
Demand has accelerated due to growing accessibility of HDX as Gogo's dealer network has contracted to complete 27 Supplemental Type Certificates (STCs), unlocking a total addressable market of more than 18,000 aircraft globally, many of which have not had access to broadband inflight connectivity prior to Gogo Galileo. Additional STC contracts are expected in the coming weeks.
Gogo has been conducting flight tests of the Gogo Galileo HDX system on a Challenger 300 and it is performing as planned.
Gogo continues to accept purchase orders for the HDX, which is designed to be an easy upgrade to any AVANCE system (AVANCE L3, L5, LX5, SCS).
The highly anticipated service, scheduled to launch later this year, is backed by Eutelsat OneWeb's enterprise-grade LEO network. Designed for mobility, the network will deliver consistent performance with low variability across all routes globally.
A special promotional rebate of
About Gogo
Gogo is a leading provider of broadband connectivity services for the business aviation market. We offer a customizable suite of smart cabin systems for highly integrated connectivity, inflight entertainment, and voice solutions. Gogo's products and services are installed on thousands of business aircraft of all sizes and mission types from turboprops to the largest global jets, and are utilized by the largest fractional ownership operators, charter operators, corporate flight departments and individuals.
As of June 30, 2024, Gogo reported 7,031 business aircraft flying with its broadband ATG systems onboard, 4,215 of which are flying with a Gogo AVANCE L5 or L3 system; and 4,247 aircraft with narrowband satellite connectivity installed. Connect with us at www.gogoair.com.
Cautionary Note Regarding Forward-Looking Statements
Certain disclosures in this press release include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding our business outlook, industry, business strategy, plans, goals and expectations concerning our market position, international expansion, future technologies, future operations, margins, profitability, future efficiencies, capital expenditures, liquidity and capital resources, and other financial and operating information. When used in this discussion, the words "anticipate," "assume," "believe," "budget," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "future" and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release.
Forward-looking statements are based on our current expectations regarding future events, results or outcomes, including the launch of Gogo Galileo LEO global broadband service ("Global Broadband"). These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to have been correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, our ability to develop and deploy Global Broadband; our ability to deliver the expected performance capabilities of any new technology, including, without limitation, Global Broadband; and other events beyond our control that may result in unexpected adverse operating results.
Additional information concerning these and other factors can be found under the caption "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission on February 28, 2024 and in subsequent quarterly reports on Form 10-Q as filed with the SEC.
Any one of these factors or a combination of these factors could materially affect our financial condition or future results of operations and could influence whether any forward-looking statements contained in this report ultimately prove to be accurate. Our forward-looking statements are not guarantees of future performance, and you should not place undue reliance on them. All forward-looking statements speak only as of the date made and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE Gogo Business Aviation
FAQ
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