Gogo’s suffering to affect satellite capacity
March 19, 2020
By Chris Forrester
As previously reported, In Flight Communications IIFC specialists Gogo’s revenues and numbers, are set to be greatly impacted by the Coronavirus pandemic.
The challenge now shifts from Gogo (and its rivals at Global Eagle, Panasonic Avionics, Thales, Lufthansa Systems and others) and directly onto the major satellite operators.
Gogo itself rents capacity from Intelsat, SES, Eutelsat and others. Data from Gogo shows that it has capacity agreements in place on 34 satellites, and CEO Oakleigh Thorne told analysts March 16th that it would be seeking adjustments on many of these contracts to help soften the collapse in demand.
Thorne said that Gogo was a very valuable customer to the satellite industry. “We [were] the fastest growing customer prior to coronavirus, and we will be the largest customer and the fastest growing after coronavirus passes, so there is a lot of incentive for them to work with us to help us get through this pandemic.”
The amount under contract with the satellite operators is significant. Gogo has contracts in place worth some $846 million, and with $141 million due to be paid this year.