BROOMFIELD, Colo. - Gogo (NASDAQ:GOGO) Business Aviation (NASDAQ: GOGO) has received regulatory approval from the Federal Communications Commission (FCC) for its Gogo Galileo HDX and FDX antenna terminals, designed for business aircraft. The FCC Earth Station in motion (ESIM) license allows the company to operate and commercialize these terminals on US-registered aircraft and those registered in other countries within U.S. territory, including territorial waters.
This approval marks a significant step for Gogo as it moves toward the commercial launch of its Gogo Galileo service, expected later this year. According to Crystal Gordon, executive vice president, general counsel, and corporate secretary for Gogo, the ESIM license is an "important milestone" for the market introduction of the service.
The company plans to initiate flight testing of the HDX terminal this summer on its Challenger 300 testbed, to obtain certification and commence commercial operations before the end of the year. Gogo's milestone tracker will provide updates on the development of the Gogo Galileo service.
Gogo is recognized as the largest provider of broadband connectivity services for the business aviation market, offering customizable smart cabin systems for connectivity, in-flight entertainment, and voice solutions. Their technology is installed on a variety of business aircraft, from turboprops to global jets, serving fractional ownership operators, charter operators, corporate flight departments, and individual owners.
As of December 31, 2023, Gogo reported that 7,205 business aircraft were equipped with its broadband ATG systems, with 3,976 of these aircraft using Gogo AVANCE L5 or L3 systems, and 4,341 aircraft with narrowband satellite connectivity.
This article is based on a press release statement from Gogo Business Aviation.
InvestingPro Insights
As Gogo Business Aviation (NASDAQ: GOGO) gears up for the commercial launch of its Gogo Galileo service, investors and industry watchers are closely monitoring the company's financial performance and market position. According to InvestingPro data, Gogo's market capitalization stands at $1.07 billion, reflecting the company's solid standing in the business aviation connectivity market. The firm's Price to Earnings (P/E) ratio, an indicator of the company's valuation, is notably low at 7.46, hinting at potential undervaluation relative to its near-term earnings growth. Additionally, the company's Price to Book (P/B) ratio is high at 26.29, which could be a point of consideration for value-focused investors.
Among the various InvestingPro Tips, two are particularly pertinent to the current developments at Gogo. Firstly, the company's high shareholder yield suggests a favorable return on investment from a shareholder's perspective. Secondly, analysts predict Gogo will be profitable this year, which, coupled with the fact that the company has been profitable over the last twelve months, provides a positive outlook for its financial health as it expands services like Gogo Galileo.
To delve deeper into Gogo's financials and to access additional InvestingPro Tips, readers can explore the insights available on InvestingPro. There are currently 7 additional tips listed, which can offer a comprehensive understanding of the company's financial nuances. For those interested in an in-depth analysis, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.