Gogo|Satcom Direct and Airbus to develop end-to-end cabin connectivity experiences for operators of Airbus Corporate Jets (“ACJ”)

Rhea-AI Summary

Gogo Business Aviation (NASDAQ: GOGO) has announced a Memorandum of Understanding (MoU) with Airbus to enhance connectivity solutions for Airbus Corporate Jets (ACJ) operators. The partnership will integrate Gogo's Air-to-Ground (ATG) and Galileo satellite connectivity solutions into Airbus' ACJ Connect Link platform.

The agreement includes retrofit options for ATG and Gogo Galileo Half Duplex (HDX) and Full Duplex (FDX) terminals across all ACJ types. The service will be powered by the Eutelsat OneWeb Low Earth Orbit constellation and includes Gogo's next-gen phased array antennas. The package offers comprehensive features including cybersecurity services, crew training, and 24/7/365 customer support.

Once certified and following final contract signature, Airbus will lead marketing and sales activities. The solution aims to provide ACJ operators with global, low-latency broadband service supporting various applications from internet and email to video conferencing and streaming services.

Positive

• Partnership with major aircraft manufacturer Airbus expands market reach
• Integration of Gogo solutions into all Airbus ACJ types increases potential customer base
• Comprehensive service offering includes high-margin additional services (cybersecurity, training, support)

Negative

• MoU is not yet a firm contract, indicating uncertainty in final terms
• Solution requires additional certification and supplemental type certificates before implementation

Insights

Aviation Technology Analyst

This strategic partnership marks a pivotal moment in business aviation connectivity, potentially reshaping the competitive landscape in the $3.8 billion business aviation connectivity market. The integration of Gogo's advanced connectivity solutions into Airbus Corporate Jets (ACJ) presents multiple revenue streams and market advantages:

1. Market Expansion: This partnership gives Gogo privileged access to Airbus's elite ACJ customer base, representing a high-value market segment. ACJ typically delivers 10-12 aircraft annually, with each installation potentially generating significant recurring revenue through service subscriptions and value-added services.

2. Technical Differentiation: The combination of ATG and LEO satellite technology creates a robust hybrid connectivity solution, offering:

• Seamless coverage transition between ground and satellite networks
• Lower latency compared to traditional GEO satellite solutions
• Smaller hardware footprint, reducing installation complexity and aircraft downtime

3. Competitive Positioning: This agreement strengthens Gogo's position against competitors like Inmarsat and Viasat, particularly in the ultra-high-net-worth segment. The exclusive nature of the partnership creates a moat around the ACJ market.

4. Revenue Implications: Beyond hardware sales, the recurring revenue from subscriptions and value-added services (cybersecurity, training, support) presents a stable, high-margin revenue stream. Each ACJ customer typically represents $200,000-500,000 in annual recurring revenue potential.

This partnership aligns with the industry trend toward integrated, OEM-certified connectivity solutions, potentially setting new standards for business aviation connectivity. The exclusive nature of this agreement and the high-value customer base it targets could significantly impact Gogo's market position and financial performance in the coming years.

Gogo Business Aviation (NASDAQ: GOGO) |Satcom Direct today announced the finalizing of a multifaceted Memorandum of Understanding (MoU) with Airbus.

Broomfield, CO., Feb. 06, 2025 (GLOBE NEWSWIRE) -- Gogo Business Aviation (NASDAQ: GOGO) |Satcom Direct today announced the finalizing of a multifaceted Memorandum of Understanding (MoU) with Airbus. The MoU confirms the two organizations’ aim to leverage the full potential of the Gogo Air-to-Ground (ATG), FlightDeck Freedom, and Gogo Galileo satellite connectivity solutions to deliver low-latency, high-speed broadband internet to Airbus ACJ operators.

The joint commitment, once firmed up, will allow Airbus’ ACJ Connect Link customers to benefit from ATG and Gogo Galileo Half Duplex (HDX) and Full Duplex (FDX) terminals provided as retrofit options on all Airbus ACJ types. In addition, it will include the full suite of Gogo|SD added value services, including cybersecurity services, crew training and 24/7/365 customer support.

Powered by the Eutelsat OneWeb Low Earth Orbit, LEO constellation, which is the only LEO network delivering enterprise-grade aviation solutions, Gogo will supply Airbus ACJ operators with its next-gen phased array antennas to integrate into Airbus’ ACJ Connect Link solution. With a small form factor and fewer components, minimal downtime is required to equip the airframe, enabling rapid access to high-speed cabin connectivity, flight deck services and inflight entertainment.

Chadi Saade, President of Airbus Corporate Jets, said, “We are very pleased to enter into this MoU agreement with Gogo, especially as we aim to offer our Airbus ACJ operators and business leaders the highest standard connectivity solutions and customer support. This will allow them to be in the right place at the right time, connected and ready to act. Moreover, we are confident that Gogo presents a compelling solution with its cutting-edge technology, backed by a global customer support team of industry experts.”

Airbus will collaborate with its qualified partners to certify the terminal integration and generate the required Supplemental Type Certificates for the HDX, FDX, and ATG equipment installations. Once the solution is approved and following the firm contract signature, Airbus will lead the marketing and sales activities to ensure that ACJ operators can optimize the suite of connectivity solutions.

The Gogo Galileo solution will enrich Airbus' ACJ Connect Link offering so that operators, passengers, and crew will be able to enjoy a plethora of uninterrupted applications, including voice, internet, email services, video conferencing, gaming, and live movie and TV streaming from boarding to deplaning globally.

“With the Gogo Galileo solution, Airbus ACJ operators have immediate access to global, low latency broadband service to support full connectivity capability and redundancy. Passengers will be able to emulate their digital life on the ground in the air,” says Chris Moore, CEO of Gogo.  “As these aircraft frequently travel the globe, the operators need to know they can deliver reliable, consistent connectivity at all times, and we are committed to ensuring that we deliver best-in-class connectivity to Airbus ACJ customers. This is a major milestone in the Gogo connectivity journey, and we’re proud to work with Airbus to elevate and enrich its connectivity offering,” concludes Moore.

Photo Caption: Gogo|Satcom Direct and Airbus to develop end-to-end cabin connectivity experiences Airbus Corporate Jet operators

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About Gogo|Satcom Direct

The strategic transaction between Gogo Business Aviation and Satcom Direct created the only multi-orbit, multi-band in-flight connectivity provider offering connectivity technology purpose-built for business and military/government aviation. Uniting two industry-leading brands in December 2024 has created an industry-leading product portfolio that offers best-in-class solutions for all aircraft types, from small to large and heavy jets and beyond.

As a combined organization, Gogo|Satcom Direct uniquely incorporates broadband connectivity services via its Air-to-Ground network, together with satellite constellations, to deliver consistent, global tip-to-tail connectivity through a sophisticated suite of software, hardware, and advanced infrastructure supported by a 24/7/365 in-person customer support team.

The merging of the two companies heralds a new era for inflight connectivity, setting new standards for reliability, security, and innovation. Gogo|Satcom Direct makes it easier for customers to stay connected beyond all expectations.

Media Contact - Gogo|Satcom Direct
Jane Stanbury – Arena Group                                                                
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Attachment

• Gogo|Satcom Direct and Airbus to develop end-to-end cabin connectivity experiences for operators of Airbus Corporate Jets (“ACJ”)

FAQ

What does the Gogo-Airbus MoU mean for GOGO's market expansion?

The MoU allows Gogo to integrate its connectivity solutions across all Airbus Corporate Jet types, significantly expanding its market reach in the premium aviation segment.

What connectivity solutions will GOGO provide for Airbus Corporate Jets?

Gogo will provide Air-to-Ground (ATG), FlightDeck Freedom, and Galileo satellite connectivity solutions, including Half Duplex and Full Duplex terminals.

When will GOGO's connectivity solutions be available for Airbus ACJ operators?

The timeline depends on certification and supplemental type certificates approval, followed by a firm contract signature. No specific date was announced.

What additional services does GOGO offer with the Airbus ACJ connectivity package?

The package includes cybersecurity services, crew training, and 24/7/365 customer support alongside the connectivity solutions.