NetJets Signs New Connectivity Agreement Extending 20-Year Relationship with Gogo
- NetJets has secured an agreement with Gogo Business Aviation to upgrade their U.S. aircraft to advanced connectivity solutions such as Gogo AVANCE L5, Gogo 5G, and Gogo Galileo.
- The 10-year agreement allows NetJets to potentially upgrade its entire fleet of aircraft to the AVANCE platform, including Gogo's global LEO broadband satellite service.
- Gogo 5G and LEO satcom services are aimed at delivering high throughput with very low latency to cater to the increased demand in data-heavy services and applications, as well as emerging technologies.
- Gogo Galileo offers two fuselage-mount antennas: HDX and FDX, designed to fit on any size business aircraft, providing easy upgrade paths to new technologies and networks.
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Insights
The strategic partnership between NetJets and Gogo Business Aviation marks a significant enhancement in the private aviation sector, particularly in the realm of inflight connectivity. The upgrade to Gogo AVANCE L5, Gogo 5G and Gogo Galileo represents a substantial investment in customer experience, which is a critical competitive factor in the luxury travel market. The commitment to a 10-year agreement underscores the long-term vision both companies share for innovation and service improvement.
From a market research perspective, the integration of advanced connectivity solutions like Gogo 5G and LEO broadband satellite services can be expected to increase customer satisfaction and loyalty, which are pivotal in high-value service industries. As NetJets caters to a clientele that demands seamless in-flight productivity and entertainment, this move may also serve as a differentiator against competitors, potentially leading to an increased market share.
The technical advancements brought by Gogo's 5G and LEO services represent a leap forward in terms of inflight internet capabilities. Gogo 5G's expected average speeds of ~25 Mbps and peak speeds in the 75-80 Mbps range will significantly outperform current 4G offerings. Moreover, the transition from geosynchronous (GEO) to low earth orbit (LEO) satellites will reduce latency, a key factor for real-time applications and a smoother user experience.
For stakeholders, this implies that NetJets' fleet will be equipped to meet the growing demand for bandwidth-intensive applications such as video conferencing and high-definition streaming. This could lead to higher utilization rates of NetJets' services, as the enhanced connectivity aligns with the needs of the modern business traveler. Furthermore, the scalability of the AVANCE platform suggests that NetJets is poised to adopt future technological advancements, maintaining its competitive edge in the sector.
The financial implications of the NetJets-Gogo agreement are multifaceted. In the short term, NetJets may incur significant capital expenditure to upgrade its fleet, which could impact its cash flow and profitability. However, this investment may be offset by the potential for increased demand and pricing power due to the enhanced service offering. Over the long term, the improved service could lead to higher customer retention and acquisition, driving revenue growth.
For Gogo Business Aviation, this deal with NetJets, a leader in private aviation, could serve as a strong endorsement of its technology, potentially leading to further contracts and partnerships within the industry. The stock market often reacts favorably to such long-term agreements, especially when they involve innovative technology and prominent clients, which could positively influence Gogo's stock performance.
NetJets to Install Gogo AVANCE, 5G, and Global Broadband
"We are committed to providing our Owners with an exceptional travel experience, and Wi-Fi is a critical component," said Brad Ferrell, Executive Vice President and Chief Administrative Officer for NetJets. "Our Owners require reliable connectivity to continue their workday or connect with entertainment in-flight, which made AVANCE L5 and Gogo 5G the right platform to meet their needs, especially when traveling across America. Meanwhile, Gogo Galileo is an ideal solution for our European jets: It delivers high performance, it can be installed on any of our aircraft, and it's backed by Gogo's award-winning global customer support."
The 10-year agreement gives NetJets the opportunity to upgrade its entire fleet of aircraft to the AVANCE platform, including 5G and Gogo's global LEO broadband satellite service, depending on the aircraft's mission.
"Gogo is excited to continue our long-term partnership with NetJets," said Sergio Aguirre, Gogo's president and chief operating officer. "With more than 450 U.S. aircraft currently equipped with Gogo's systems, upgrading to AVANCE L5 will improve performance by three times, and Gogo 5G will improve performance several times that. Meanwhile, we are also bringing an even better experience to operators throughout
Throughout the 20-plus year relationship with the worldwide leader in private aviation, Gogo has created features such as over-the-air software updates to address NetJets' specific operational needs while also providing services like Gogo Vision to improve the inflight connectivity experience.
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The AVANCE platform, which powers Gogo Galileo, has been intentionally designed to provide easy upgrade paths to new technologies and networks. In the case of Gogo Galileo, any aircraft with an AVANCE product installed (L3, L5 or SCS), will only need to add the HDX or FDX antenna to the fuselage to access the benefits of LEO satellite network technology.
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, in-flight 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 Sept. 30, 2023, Gogo reported 7,150 business aircraft flying with its broadband ATG systems onboard, 3,784 of which are flying with a Gogo AVANCE L5 or L3 system; and 4,395 aircraft with narrowband satellite connectivity installed. Connect with us at www.gogoair.com.
About NetJets
NetJets has been setting—and exceeding—industry standards since 1964. Today, NetJets is proud to be a Berkshire Hathaway company known for its unwavering commitment to safety and service. The NetJets premier family of brands, encompassing NetJets, Executive Jet Management, QS Partners, and QS Security, offers a variety of customizable travel solutions, including shared ownership, lease and jet card options, aircraft management, private jet chartering, brokerage and acquisition services, and specialized security services. This comprehensive suite of solutions is why so many of the world's most discerning travelers choose NetJets generation after generation. It is also because NetJets has the largest, most diverse private jet fleet in the world, which grants anytime access to even the most remote destinations across the globe. To learn more about the leader in private aviation, visit netjets.com today.
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 including our relationship with NetJets, plans, goals and expectations concerning our market position, international expansion, future technologies including Gogo's 5G and LEO services, future operations, future efficiencies and other financial and operating information. When used in this discussion, the words "anticipate," "believe," "continue," "could," "expect," "intend," "may," "plan," "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 reflect our current expectations regarding future events, results or outcomes. 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 these risks and factors, they include, among others, our ability to execute on our agreement with NetJets, and our ability to develop and deploy Gogo 5G, AVANCE L5, Gogo Galileo and other technologies.
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 Dec. 31, 2022, as filed with the Securities and Exchange Commission ("SEC") on Feb. 28, 2023.
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 Contacts: | |
Dave Mellin, Gogo Business Aviation | NetJets |
+1 720-840-4788 | KWT Global | Brand Strategy |
and Public Relations | |
+1 614-849-7757 | |
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