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GOGO Inc. GOGO recently announced that it has successfully secured Parts Manufacturer Approval (“PMA”) for its Gogo Galileo HDX antenna from the Federal Aviation Administration (“FAA”). To obtain this approval, GOGO collaborated with Delta Engineering, a leading provider of engineering and manufacturing services in the aviation sector and a member of the FAA Organization Designation Authorization program.
This development will be a game changer for in-flight connectivity across the business aviation industry. Operators and private owners of the smaller cabins often do not have access to high-speed connectivity options comparable to the large jets. Moreover, deploying a new connectivity setup or upgrading an existing setup can be a complex and costly endeavor. Traditional satellite connectivity setups often lack flexibility and interoperability. Operators with diverse types of aircraft find it very difficult to match the connectivity needs of different aircraft. GOGO’s advanced solution effectively addresses these limitations.
The company’s HDX antenna utilizes its global Eutelsat OneWeb Low Earth Orbit satellite constellation to deliver low latency connectivity in altitude comparable to terrestrial internet connectivity. It effectively supports high-speed broadband connectivity, providing a speed of up to 60 Mbps. The solution is easy to install and compatible with a vast array of aircraft, from small to large jets, executive airliners and turboprops. This will allow operators with mixed-sized fleets and owners of the smaller cabin to easily avail in-flight connectivity.
Will This Development Drive GOGO’s Share Performance?
Gogo is the leading provider of in-flight connectivity and wireless entertainment solutions for the global aviation industry. It currently provides services on approximately 9,600 aircraft, which represents more than 20% of the world's total commercial and business jet aircraft. Gogo has partnerships with 14 commercial airlines and is installed on more than 2,500 commercial aircraft. Nearly 7,000 business aircraft are also flying with its solutions, including the world's largest fractional ownership fleets.
The demand for high-speed in-flight connectivity is expected to rise at a substantial rate. The PMA approval will allow GOGO to move toward full-scale production of HDX and enable it to capitalize on the emerging market trends.
GOGO Stock’s Price Movement
Shares of GOGO have lost 21.4% over the past year against the industry’s growth of 36.4%.
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