Gogo Inc. (‘Gogo’) provides broadband connectivity services to its customers through its air-to-ground (‘ATG’) technology and multiple satellite constellations.
The company delivers global tip-to-tail connectivity with a suite of software, hardware, and advanced infrastructure, supported by a 24/7/365 in-person customer support team.
Acquisition of Satcom Direct, LLC (the ‘Transaction’)
On December 3, 2024 (the ‘Closing’), the company purchased all of the issued and outstanding equity interes...
Gogo Inc. (‘Gogo’) provides broadband connectivity services to its customers through its air-to-ground (‘ATG’) technology and multiple satellite constellations.
The company delivers global tip-to-tail connectivity with a suite of software, hardware, and advanced infrastructure, supported by a 24/7/365 in-person customer support team.
Acquisition of Satcom Direct, LLC (the ‘Transaction’)
On December 3, 2024 (the ‘Closing’), the company purchased all of the issued and outstanding equity interests of Satcom Direct, LLC, a Delaware limited liability company (f/k/a Satcom Direct, Inc., a Florida corporation), and certain of its affiliates and subsidiaries (collectively, ‘Satcom Direct’).
The acquisition has created the only in-flight connectivity provider able to satisfy the performance and cost needs of every segment of the global business aviation and military/government mobility markets. Founded in 1997, Satcom Direct primarily engages in providing business, military, and government in-flight connectivity services as a reseller of satellite services. Satcom Direct operates worldwide, with an international sales and service team based in nine countries. Satcom Direct sells services and equipment globally through its international sales force to OEMs, governments, military groups, and private fleet companies, among other entities. Satcom Direct manages a network operating center and maintains its own data center in Melbourne, Florida, with licensed data sites strategically placed around the world.
Segments
As a result of the company’s acquisition of Satcom Direct, the company had two reportable segments as of December 31, 2024: the legacy pre-acquisition operations of the company (‘Gogo BA’) and the acquired entity, Satcom Direct. The Gogo BA segment provides in-flight connectivity for business aviation via air-to-ground (‘ATG’) and satellite networks. The Satcom Direct segment primarily provides global satellite-based communication solutions for business, military, and government aircraft.
Strategy and Solutions
The company’s acquisition of Satcom Direct created a combined organization, which currently is the only multi-orbit, multi-band in-flight connectivity provider offering connectivity technology purpose-built for business and military/government aviation.
The key strategic drivers of the Transaction included, among others, access to Satcom Direct’s established global footprint, which includes a mature sales force and customers in over 100 countries; an established global military/government team and existing global military/government customers, with the ability to provide the company entry into the large and fast-growing military/government mobility vertical for aircraft and land; additional products to provide to legacy customers of Gogo BA, including, among others, Satcom Direct’s well-known customer software solution, SD Pro; and integrated low earth orbit (‘LEO’) and geostationary earth orbit (‘GEO’) satellite solutions, providing greater reliability and redundancy for customers, enabling the company to distinguish itself as a holistic satellite network integrator.
The company views all these significant changes as opportunities to leverage its combined technological know-how and deep understanding of the in-flight connectivity market, and to drive greater penetration of its solutions in its markets over the next decade.
Gogo Galileo: The company commercially launched the first global LEO broadband satellite service purpose-built for business aviation (‘Gogo Galileo’) in the first quarter of 2025. Gogo Galileo will use an electronically steered antenna (‘ESA’), specifically designed with Hughes Network Systems, LLC (‘Hughes’) to address a broad range of business aviation and military/government aircraft, operating on a LEO satellite network operated by Network Access Associates, Ltd. (‘Eutelsat OneWeb’).
ATG Broadband Service: Gogo is the leading provider of in-flight connectivity in the ATG broadband market in North America. The company continues to augment its ATG broadband connectivity services through the addition of its fourth ATG broadband network (Gogo 5G), which is expected to deliver revenue in the fourth quarter of 2025. The company is also actively working with a subset of its customers utilizing its AVANCE products and legacy Gogo Biz ATG airborne system to transition to an AVANCE system compatible with a new LTE network. The company anticipates this subset of customers will see improved performance because of this network transition, which is expected to occur in 2026. The cost for the transition to the new LTE network is offset by the company’s participation in the FCC Secure and Trusted Communications Networks Reimbursement Program (the ‘FCC Reimbursement Program’).
GEO Broadband Service: As a result of the Transaction, the company now partners with industry satellite network operators to deliver GEO Ku- and Ka-band services. The company’s combined product offerings allow it to integrate and offer network-agnostic solutions, providing customers with GEO satellite services utilizing networks provided by operators, including, among others, Intelsat Jackson Holdings S.A. (‘Intelsat’) and Viasat, Inc. (‘Viasat’).
Narrowband Satellite Services: Since the company’s initial migration to narrowband satellite connectivity in the early 2000s, it continues to provide narrowband satellite services to customers in North America and internationally. The company now provides this narrowband satellite service through reseller agreements with satellite providers, including Iridium Satellite LLC (‘Iridium’) and Viasat.
As of December 31, 2024, the company had approximately 1,249 activated GEO broadband business aviation customer aircraft and 7,059 line-replaceable units (‘LRUs’) for its ATG broadband services, of which approximately 4,608 were equipped with AVANCE.
Products, Services, and Customer Support
In-Flight Systems: Across both the company’s business aviation and military/government customer bases, its customers have a broad range of equipment choices for their in-flight systems, which allows the company to provide a solution based on geography, mission, size of aircraft, and passenger preference. Customers can select a variety of different products, such as its legacy AVANCE platforms and Gogo Galileo, products acquired with Satcom Direct, including Plane Simple, Satcom Direct Router (‘SDR’), SD PRO, and FlightDeck Freedom, as well as other products to fit their needs.
In-Flight Services (Service Plans): Across both the company’s business aviation and military/government customer bases, the company provides a wide range of in-flight services for passengers, flight and cabin crews, and its aviation partners. The company offers a variety of connectivity services tailored to its various networks and technologies, which are generally priced on a per-aircraft per-month basis. The company offers service plans ranging from unlimited data usage to an hourly monthly consumption plan, and offers alongside these data plans voice rates, inflight entertainment options, and other service features.
Infrastructure: The infrastructure supporting the company’s in-flight connectivity services consists of its networks, towers, cybersecurity software, and data centers.
Customer Support: The company strives to deliver a premium customer experience throughout its business. Its support and service organization leads these efforts and provides operational assistance and comprehensive analytics to its customers 24/7/365. The organization assists with installations, troubleshooting, system activations, and data analysis to evaluate its system and operational performance.
Product Development: The company’s engineering, design, and development (‘ED&D’) operations augment its service and support teams. The in-house ED&D organization translates business requirements into products that comply with rigorous avionics certification requirements. Specialized capabilities within the company’s ED&D operation include, among others, radiofrequency engineering, airborne platform development, network engineering, systems engineering, and application development and business systems.
Given the company’s highly specialized technology and required production levels, it designs, assembles, and tests its airborne LRUs, SDRs, and Plane Simple terminals in-house, while relying on third parties to manufacture specific components based on its design specifications. The company also relies on third parties to manufacture its antennas and generally shares antenna design responsibilities and intellectual property with these vendors. The company’s manufacturing and repair facilities located in the U.S. and in Canada are respectively certified by the Federal Aviation Administration (‘FAA’) and Transport Canada Civil Aviation.
Customers and Distribution Partners
Business Aviation Customers
The company provides in-flight connectivity services to a variety of customers needing connectivity, but its end-users are primarily aircraft owners/operators. As of December 31, 2024, the company’s market consisted of approximately 27,000 business aircraft in North America, of which approximately 34% have broadband connectivity, and approximately 14,000 business aircraft in the rest of the world, of which approximately 14% have broadband connectivity. As of December 31, 2024, the company had approximately 8,200 customers. The company’s top ten customers accounted for approximately 20% of its 2024 service revenue.
The company also sells directly to every OEM of business aviation aircraft, including Bombardier, Dassault Falcon, Embraer, Gulfstream, Pilatus, and Textron Aviation. In the aftermarket, the company sells through a global distribution network of approximately 140 independent dealers with approximately 220 locations, who are certified by the FAA as Maintenance and Repair Organizations. The company’s independent dealers market, resell, and obtain FAA-required supplemental type certificates (‘STC’) for its equipment. The company’s customers also include fractional jet operators, such as NetJets, charter operators, corporate flight departments, and individuals owning aircraft.
Military and Civilian Government Customers
Following the Transaction, the company has acquired a diversified customer base that now includes global military and civilian government customers supported through Satcom Direct’s military/government business. Similar to the company’s provision of services for business aviation customers, the military/government operation offers a full range of satellite connectivity options for voice, data, and video applications on land, at sea, and in the air. The military/government operation services both the U.S. and international customers with products and services that have defense, civil, and commercial applications, with the company’s principal customers being agencies of the U.S. federal government and other members of the North American Treaty Organization.
Many of the company’s military and civilian government contracts are subject to a competitive bid process and are awarded based on technical merit, personnel qualifications, experience, and price. The company also receives some contract awards involving special technical capabilities on a negotiated, noncompetitive basis due to its unique mix of communication products, satellite services, engineering capabilities, and technical expertise in specialized areas.
Competition
With respect to the provisioning of the company’s services to the business aviation and military and government markets, it competes against both equipment providers and GEO- and LEO-satellite-based telecommunications service providers, as well as resellers of the above, including, but not limited to, Honeywell Aerospace, Collins Aerospace, Intelsat, SES, SpaceX, and ViaSat. The company also competes with government communications service providers and manufacturers of defense electronics products, systems, or subsystems, including, but not limited to, BAE Systems, General Dynamics, Telesat, L3Harris, Echostar (Hughes Network Systems), Northrop Grumman, and similar companies for certain contracts tendered in the military and government markets.
Regulatory Matters
Certain of the company’s the Federal Communications Commission’s (‘FCC’) licenses are conditioned upon its ability to obtain from the FAA a ‘No Hazard Determination’ for its cell sites, which indicates that a proposed structure will not, if built as specified, create a hazard to air navigation.
The company’s business depends on its continuing access to, or use of, these FAA certifications, authorizations, and other approvals, and its employment of, or access to, FAA-certified engineering and other professionals. In accordance with these certifications, authorizations, and other approvals, the FAA requires that the company maintain, review, and document its quality assurance processes.
For countries with which the FAA does not have a Bilateral Airworthiness Agreement (‘BAA’) or Bilateral Aviation Safety Agreement (‘BASA’), the company must apply for certification approval with the CAA of the country in which the aircraft is registered.
Under the Communications Act of 1934, as amended (the ‘Communications Act’), the FCC licenses the spectrum that the company uses and regulates the construction, operation, acquisition, and sale of its wireless services. The Communications Act and FCC rules also require the FCC’s prior approval of the assignment or transfer of control of an FCC license, or the acquisition, directly or indirectly, of more than 25% of the equity or voting control of Gogo by non-U.S. individuals or entities.
The company’s Internet connectivity service is also subject to the FCC’s data roaming rules, which require commercial mobile data service (‘CMDS’) providers like Gogo to negotiate roaming arrangements with any requesting facilities-based, technologically compatible providers of commercial mobile data service (‘CMDS’).
In addition to the two ATG licenses, the company holds microwave licenses that are used for backhaul in its terrestrial network and an authorization for the provision of voice and data services between the United States and foreign points.
The FCC issued the company’s 3 MHz ATG License on October 31, 2006, for a renewable 10-year term. The company has satisfied its obligation under the license to provide ‘substantial service’ to aircraft, and on January 25, 2017, received confirmation from the FCC that the license has been renewed until October 31, 2026.
The company’s 1 MHz ATG license, obtained in 2013 from LiveTV Airfone, LLC, was also originally issued on October 31, 2006, for a renewable 10-year term, although there was no specific ‘substantial service’ obligation attached to this license. The company’s application to renew this license was subsequently granted for an additional 10-year term. On August 3, 2017, the FCC released an order that, among other things, revised the wireless license renewal rules.
The company’s two ATG licenses contain certain conditions that require it to comply with all applicable FCC and FAA rules, as well as all bilateral agreements between the United States and Canada and the United States and Mexico regarding the frequencies that are allocated for ATG services. These agreements apply to the company’s use of the spectrum in areas adjacent to the United States’ northern and southern borders and in and out of Canadian and Mexican airspace.
The company has the required FCC equipment authorizations for its services in the United States. Trade and export policies and regulations, like the Export Administration Regulations (‘EAR’), affect its business in and outside the U.S. Sanctions imposed by the U.S. or ally countries, either prohibiting or limiting business with certain entities and countries, may also impact its business.
The company must comply with certain Communications Act and FCC privacy and data security rules for its services, including certain provisions applicable to customer proprietary network information (‘CPNI’). Effective March 2024, the FCC adopted additional CPNI and cybersecurity rules requiring disclosures of applicable data breaches to the FCC, federal law enforcement, and customers, which may affect its business.
Additionally, as a U.S. Government contractor, the company recognizes its obligations under Executive Order 14028 regarding cybersecurity, which mandates federal contractors to implement heightened security measures to protect critical infrastructure. As a provider of communication services, the company ensures that its cybersecurity practices align with federal guidelines, including those specified by the National Institute of Standards and Technology (‘NIST’) and the Federal Information Security Modernization Act (‘FISMA’), to protect sensitive government data from cyber threats.
The company is also subject to other federal and state consumer privacy and data security requirements. For example, Section 5 of the Federal Trade Commission (‘FTC’) Act prohibits ‘unfair or deceptive acts or practices in or affecting commerce.’
To the extent the company collects personal information of residents of other countries, it may be subject to the data protection regulations of the relevant countries. The General Data Protection Regulation (‘GDPR’) of the European Union (‘EU’) has imposed more restrictive privacy-related requirements for entities outside the EU that process personal information about European data subjects. EU member states also have some flexibility to supplement the GDPR with their own laws and regulations and may apply stricter requirements for certain data processing activities. Additionally, in Canada, the Personal Information Protection and Electronic Documents Act of 2000 (‘PIPEDA’) and substantially similar provincial laws may impose data privacy and security obligations on the processing of personal data. The regulation of data privacy and security in other jurisdictions continues to evolve.
Intellectual Property
As of March 1, 2025, the company held 167 U.S. patents expiring on dates ranging from June 2025 to March 2043, and 404 foreign patents expiring on dates ranging from September 2027 to October 2040.
The company’s registered trademarks in the United States and certain other countries include, among others, ‘Gogo,’ ‘Gogo 5G,’ ‘Gogo Galileo,’ ‘Gogo Biz,’ and ‘Gogo Vision,’ along with trademarks acquired through the Transaction, including, among others, ‘Satcom Direct,’ ‘SD Pro,’ ‘FlightDeck Freedom,’ and ‘Plane Simple,’ although the company has not yet obtained registrations for its most important marks in all markets in which it currently does business or intends to do business in the future.
Under the terms of the sale of the company’s commercial aviation (‘CA’) business to Intelsat that closed in 2020, the company retained ownership of the entire patent portfolio held by it and its affiliates, including patents developed and obtained in connection with its former CA business.
Research and Development
Expenditures for the company’s research and development are charged to expense as incurred and totaled $44.8 million for the year ended December 31, 2024.
History
Gogo Inc. was founded in 1991. The company was incorporated in 2009.
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