In-flight connectivity provider, Gogo Inc.
’s (GOGO - Snapshot Report
) popular Gogo Vision onboard Internet service is available to domestic passengers of Japan Airlines (JAL). Initially, the company will provide the Gogo Wi-Fi service to three 777-200 SKY NEXT carriers only.
The new offering will allow Japan Airlines passengers to stream movies and television shows through Wi-Fi on laptops or tablets. The service will also permit free access to Japan and Japan Airlines’ original content, including anime, sports and music.
Dating back to Oct 2013, Gogo had teamed up with Japan Airlines to provide in-flight Internet connectivity to the latter’s domestic fleet. Per the deal, Gogo will provide Wi-Fi service to 77 aircrafts in Japan. Moreover, this marks the first international partnership for Gogo. On the other hand, Japan Airlines is the foremost airline operator to offer domestic in-flight Internet services to its passengers.
Gogo’s expanded online services will provide added in-flight benefits to passengers. They will be able to rent and stream movies and TV shows from major Hollywood studios wirelessly from an onboard server to their Wi-Fi enabled devices. Also, the content will be available for viewing for 24 hours post landing.
With rapidly increasing air traffic and intensifying competition in the space, air carriers are providing sophisticated entertainment options to passengers on board. In-flight connectivity is becoming common thereby boosting the business of the likes of Gogo.
Recently, Gogo got a green signal to offer Ku-band satellite connectivity service for carriers flying over the eastern and western regions of Russia. At present, the company has the license to operate in over 180 countries and plans to deliver Internet connectivity services to nearly 50 to 100 international flights by the end of 2014.
Earlier, Gogo collaborated with aerospace behemoth The Boeing Co.
(BA - Analyst Report
) in view of the prospect of installing Gogo in-flight connectivity technology in Boeing’s aircraft. Moreover, it has already collaborated with major U.S. airline companies like Aeromexico, American Airlines, Air Canada, AirTran Airways, Alaska Air Group, Inc.
(ALK - Analyst Report
) owned Alaska Airlines, Delta Air Lines Inc.
(DAL - Analyst Report
), United Airlines, US Airways and Virgin America.
Apart from in-flight Wi-Fi where Gogo already has a dominant position, it is set to launch messaging and calling programs as well as on-demand entertainment systems. Again, the company is transitioning from its air-to-ground network to a satellite connectivity system that will boost Internet speed by six times.
Hence, we believe that Gogo’s onboard Internet connectivity services coupled with its upcoming value-added services will certainly drive the company’s top line while moving ahead.
Gogo currently carries a Zacks Rank #3 (Hold).