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BROOMFIELD, CO. - Gogo (NASDAQ: GOGO), a profitable aviation connectivity provider with a market capitalization of $879 million and strong gross margins of 66%, has received the green light from the Federal Aviation Administration (FAA) to move forward with the full-scale production and sales of its Galileo HDX antenna for business aviation. According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value assessment. The Parts Manufacturer Approval (PMA) for the electronically steered antenna (ESA) allows Gogo’s global dealer network to begin installations and work on obtaining Supplemental Type Certificates (STCs) for over thirty types of aircraft.
The Gogo Galileo HDX antenna is designed to be seamlessly integrated onto the fuselage of business jets, connecting via simple cabling to the Gogo AVANCE system. This setup enables high-speed broadband distribution within the aircraft cabin, with speeds reaching up to 60Mbps. The antenna leverages the Eutelsat OneWeb Low Earth Orbit (LEO) satellite constellation to provide low-latency, high-speed connectivity similar to terrestrial digital experiences while in flight.
The versatility of the HDX antenna means it can be fitted onto new aircraft or included in cabin upgrades, offering a range of connectivity options for different aircraft sizes, from small jets to executive airliners and turboprops. This development is poised to bridge the connectivity gap for smaller cabins that previously lacked access to high-speed options available to larger jets. With a healthy current ratio of 3.58 and strong return on assets of 7.15%, InvestingPro data shows Gogo is well-positioned to execute this expansion. Subscribers can access 6 additional exclusive ProTips and comprehensive financial metrics in the Pro Research Report.
Chris Moore, CEO of Gogo, stated that the PMA approval is a pivotal change for the connectivity landscape, expanding the horizons for both existing and new customers. He emphasized that the HDX antenna is designed to meet the connectivity needs of various aircraft sizes and can serve as a standalone solution or complement existing systems to enhance redundancy and support the growing demand for data to power multiple applications.
The HDX antenna’s approval is expected to benefit operators and private owners by providing uninterrupted global connectivity. For a comprehensive list of aircraft types eligible for the HDX installation, interested parties are directed to the Gogo Galileo STC status page.
This advancement is based on a press release statement from Gogo. With earnings scheduled for March 14th and analysts projecting continued profitability, investors seeking detailed insights can access the full financial analysis and Fair Value calculations through InvestingPro’s comprehensive research platform, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Gogo Business Aviation and Satcom Direct have renewed their preferred supplier agreement with Luxaviation Group for an additional three years. This renewal will continue to provide Luxaviation with enhanced connectivity options through Gogo’s Galileo phased array antennas and the North American Air-to-Ground network. The agreement ensures that Luxaviation will maintain access to advanced connectivity solutions, including various Software-as-a-Service applications and flight deck connectivity. Customers of Luxaviation will benefit from Gogo Galileo’s half-duplex, HDX, and full-duplex FDX phased array terminals. Gogo|Satcom Direct’s offerings are supported by relationships with major satellite operators like Intelsat, Viasat, and Eutelsat OneWeb, allowing for multi-orbit connectivity. Dave Falberg, SVP Sales, EMEA APAC at Gogo|Satcom Direct, mentioned that their expanded portfolio is designed to meet all connectivity requirements and is future-proofed against evolving demands. The strategic transaction between Gogo Business Aviation and Satcom Direct in December 2024 has positioned the merged entity as a unique provider of multi-orbit, multi-band in-flight connectivity. This combined expertise is expected to set new standards in reliability, security, and innovation for business and military/government aviation connectivity.
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