Gogo Galileo HDX Takes Flight; First Installation Complete on Challenger 300

Rhea-AI Summary

Gogo Business Aviation (NASDAQ: GOGO) has completed the first installation of Gogo Galileo HDX on a Bombardier Challenger 300 and begun flight testing. This marks a significant step towards the commercial launch of its Low-Earth-Orbit (LEO) global broadband solution later this year. The installation process was straightforward for aircraft with existing AVANCE platform equipment.

Gogo Galileo HDX is on track to launch in Q4 2024, offering mean speeds of 57 Mbps and peak speeds up to 60 Mbps. The company has secured eight STC programs covering 5,318 aircraft, with 21 more agreements in process. Gogo is now accepting purchase orders, with pricing and service plans available on their website. A $25,000 rebate is offered to current Gogo customers upgrading from legacy systems.

Positive

• First installation of Gogo Galileo HDX completed, marking progress towards commercial launch
• Eight STC programs committed covering 5,318 aircraft, with 21 more agreements in process
• Gogo Galileo HDX offers mean speeds of 57 Mbps and peak speeds up to 60 Mbps
• $25,000 rebate offered to current customers upgrading from legacy systems
• On track for Q4 2024 launch, on time and on budget

Negative

• None.

Insights

Aerospace Technology Expert

The successful installation and testing of Gogo Galileo HDX on a Challenger 300 marks a significant milestone in business aviation connectivity. The system's seamless integration with existing AVANCE platforms demonstrates Gogo's strategic approach to market penetration. With 57% mean speeds and peaks up to 60%, Galileo HDX offers a substantial upgrade over current in-flight connectivity solutions.

The upcoming FDX antenna's promised speeds of 189% mean and 195% peak further solidify Gogo's position in the high-end market segment. The 8 committed STC programs covering 5,318 aircraft, with 21 more in process, indicate strong industry interest and potential for rapid adoption. This rollout could reshape the competitive landscape in business aviation connectivity.

Financial Analyst

Gogo's on-time, on-budget progress with Galileo HDX is a positive indicator for investors. The company's strategy of leveraging its existing AVANCE customer base for upgrades is financially astute, potentially leading to high conversion rates and lower customer acquisition costs. The $25,000 rebate for legacy system upgrades is a smart move to accelerate adoption and secure market share.

With 17,585 aircraft covered by current and in-process STCs, Gogo is positioning itself for significant revenue growth. The enterprise-grade LEO network partnership with Eutelsat OneWeb differentiates Gogo's offering, potentially justifying premium pricing. Investors should watch for Q4 launch success and initial adoption rates as key performance indicators.

Market Research Analyst

Gogo's Galileo HDX launch addresses a growing demand for high-speed, reliable connectivity in business aviation. The seamless upgrade path for existing AVANCE customers creates a strong value proposition, potentially leading to high adoption rates. The differentiation of using an enterprise-grade LEO network, not shared with consumers, appeals to the premium business aviation segment that values exclusivity and performance.

The two-tiered approach with HDX and FDX antennas caters to different aircraft sizes and performance needs, expanding Gogo's addressable market. The extensive STC coverage suggests broad compatibility across aircraft types, reducing barriers to adoption. Market reception in Q4 2024 and early 2025 will be important in determining Gogo's success in capturing market share in this evolving sector.

Gogo Galileo Marches Toward Commercial Launch with Installation and Flight Testing

BROOMFIELD, Colo., Sept. 11, 2024 /PRNewswire/ -- Gogo Business Aviation (NASDAQ: GOGO), in conjunction with Duncan Aviation, has completed the first installation of Gogo Galileo HDX on a Bombardier Challenger 300 and has commenced flight testing as the company marches toward commercial launch of its Low-Earth-Orbit (LEO) global broadband solution later this year.

As will be true for any of the approximately 4,000 aircraft with AVANCE platform equipment installed, installation on the Challenger consisted only of adding the fuselage-mounted antenna on top of the aircraft, running power from the aircraft to the antenna, and running a data line from the HDX back to the already-installed AVANCE L5 LRU (line replaceable unit).

"Our expert team completed the installation, and then alongside Gogo's engineers, immediately started testing the system on the ground with eight devices connected and streaming at the same time," said Duncan Aviation Houston Satellite Manager Mark Winter. "It was impressive to say the least, and we know our customers who upgrade to Gogo Galileo will love this step-function improvement in the connectivity experience."

Gogo will now enter the next phase of testing to finetune the performance and integrity of the system, including electromagnetic interference (EMI) ground testing, vibe and buffeting testing, and a robust flight-testing campaign.

"Reaching this milestone puts Gogo Galileo HDX on track to launch in the fourth quarter, on time and on budget," said Sergio Aguirre, president and chief operating officer of Gogo. "Gogo Galileo customers will experience highly reliable service on the Eutelsat OneWeb enterprise grade LEO satellite network, which unlike competitive LEO networks, does not share bandwidth with consumer users."

As of the company's second quarter earnings report, Gogo Galileo HDX has eight STC programs committed covering 5,318 aircraft, and another 21 STC agreements in process covering another 12,267 aircraft.

The HDX antenna is designed with a small form factor to fit on any size business aircraft with mean speeds of 57 Mbps and peak speeds up to 60 Mbps. It will be followed by the Gogo Galileo FDX antenna in the first half of 2025 which is a larger antenna designed for larger aircraft, that will achieve mean speeds of 189 Mbps and peak speeds up to 195 Mbps.

Gogo is now accepting purchase orders and equipment pricing and service plans can be found at https://www.gogoair.com/galileo/. A special rebate of $25,000 is available to current Gogo customers operating a legacy air-to-ground system (ATG 1000, 2000, 4000, 5000) when installing Gogo AVANCE SCS and HDX. For more information contact a Gogo connectivity expert.

About Gogo 
Gogo is the world's largest 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.

About Duncan Aviation
Duncan Aviation is an aircraft service provider supporting the aviation needs of government and business operators and other service providers. Services include major and minor airframe inspections, engine maintenance, major retrofits for cabin and cockpit systems, full paint and interior services, engineering and certification services, and preowned aircraft sales and acquisitions. Duncan Aviation also has international aircraft components solutions experts available 24/7/365 at +1 402.475.4125 who can handle any aircraft system problem with immediate exchanges, rotables, loaners or avionics/instrument/accessory repairs and overhauls.

Complete service facilities are located in Battle Creek, Michigan; Lincoln, Nebraska; and Provo, Utah. We also have dozens of other facilities strategically located throughout the United States to provide customers with regional support and the quickest response possible to avionics, engine and airframe Aircraft-on-Ground (AOG) situations.

For more information about any of Duncan Aviation's services, call +1 402.475.2611 or visit www.duncanaviation.aero.

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.

Media Relations Contact:	Investor Relations Contact:
Caroline Bosco	William Davis
+1 312-517-6127	+1 917-519-6994
cbosco@gogoair.com	wdavis@gogoair.com

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SOURCE Gogo Business Aviation

FAQ

When is Gogo Galileo HDX expected to launch commercially?

Gogo Galileo HDX is expected to launch commercially in the fourth quarter of 2024, according to the press release.

What are the expected speeds for Gogo Galileo HDX?

Gogo Galileo HDX is designed to achieve mean speeds of 57 Mbps and peak speeds up to 60 Mbps.

How many aircraft are covered by the current STC programs for Gogo Galileo HDX?

As of the press release, Gogo Galileo HDX has eight STC programs committed covering 5,318 aircraft, with another 21 STC agreements in process covering an additional 12,267 aircraft.

What rebate is Gogo offering for customers upgrading to Galileo HDX?

Gogo is offering a special rebate of $25,000 to current customers operating a legacy air-to-ground system when installing Gogo AVANCE SCS and HDX.