In-flight connectivity provider,
) 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
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.
) 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.
) owned Alaska Airlines,
Delta Air Lines Inc.
), 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
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).
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