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Gogo partners with Atlas Air for inflight Wi-Fi STCs

EditorRachael Rajan
Published 04/01/2024, 08:34 AM

BROOMFIELD, Colo. - Gogo (NASDAQ:GOGO) Business Aviation (NASDAQ: GOGO) has teamed up with German-based Atlas Air (NASDAQ:AAWW) Service AG to develop new Supplemental Type Certificates (STCs) that will enable the installation of the Gogo Galileo HDX antenna on Cessna CitationJet series and Embraer Phenom 300 aircraft.

This partnership aims to provide broadband inflight Wi-Fi solutions to a broader range of business aviation clients in Europe.

The STCs will potentially impact over 2,600 aircraft globally, which includes more than 1,850 Cessna Citation models and 750 Embraer Phenom 300s. Atlas (NYSE:ATCO) Air Service will initially focus on the Cessna Citation 525 series, with hardware installations on a CJ1+ expected in the summer.

Both STCs are being developed in compliance with the European Union Aviation Safety Agency (EASA) standards and will also be validated by other international aviation authorities. The collaboration signifies a step forward in providing global broadband services to smaller business aircraft, which have historically lacked such capabilities due to size and cost constraints.

Gogo's Galileo HDX system will operate on the fully deployed Eutelsat OneWeb Low-Earth-Orbit (LEO) satellite network, promising enterprise-grade connectivity. The company plans to demonstrate the new system on an Atlas Air CJ1+ at the European Business Aviation Conference and Expo (EBACE) in Geneva, Switzerland, from May 28-30, with flight testing of the prototype HDX terminal anticipated later this summer.

Gogo Business Aviation, recognized as a leading provider of broadband connectivity services for business aviation, reported that as of December 31, 2023, there were 7,205 business aircraft equipped with its broadband ATG systems, including 3,976 with Gogo AVANCE L5 or L3 systems, and 4,341 aircraft with narrowband satellite connectivity.

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Atlas Air Service AG, headquartered in Bremen, Germany, is a comprehensive business aviation service provider with a range of services that include aircraft trading, maintenance, spare parts sales, and aircraft management and charter, among others.

This article is based on a press release statement.

InvestingPro Insights

As Gogo Business Aviation (NASDAQ: GOGO) expands its reach in Europe through strategic partnerships and technological advancements, the company's financial metrics provide a glimpse into its market position and performance. With a market capitalization of approximately $1.12 billion and a notably low Price/Earnings (P/E) ratio of 7.82, Gogo stands out for its potential value relative to near-term earnings growth. Moreover, the company's P/E ratio has seen a slight adjustment in the last twelve months as of Q4 2023, coming down to 7.62, indicating a consistent value proposition in the eyes of investors.

Another key metric, the Price/Book (P/B) ratio, is considerably high at 27.61, which may reflect investor confidence in Gogo's assets and growth prospects despite a lack of dividend payments to shareholders. This aligns with the InvestingPro Tips, highlighting that while Gogo does not distribute dividends, it is expected to remain profitable this year, having been profitable over the last twelve months. The company's liquid assets also surpass short-term obligations, providing financial stability.

For investors interested in exploring more about Gogo's financial health and future prospects, there are additional InvestingPro Tips available, which could further inform investment decisions. For instance, while analysts anticipate that net income might drop this year, the company's high shareholder yield and profitability over the last twelve months could offer a counterbalance. To uncover these insights and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. In total, there are 8 InvestingPro Tips available for Gogo, providing a comprehensive analysis of the company's financial landscape.

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This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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