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Gogo Isn’t Gogo Anymore, They’ve Sold Their Commercial Inflight Internet Business

gogo plane
Dec 01 2020

Gogo has gotten out of the business of providing inflight internet to commercial airlines and will focus on the private jet market instead. They sold their commercial aviation business to Intelsat.

Intelsat believes it can negotiate more favorable terms with airlines (raise prices) and offer more bandwidth (allowing Delta to make internet free to passengers). Intelsat will lease Gogo’s air-to-ground network for 10 years as part of the deal, because commercial airlines (especially regional jets, which largely lack the capacity for satellite internet antennas) still use the technology.

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Revenue-Based Mileage-Earning No Longer Makes Sense

Nov 22 2020

Revenue-based frequent flyer programs have always been less generous. These programs were long popular with ultra low cost carriers, with low margins, where awarding customers little made sense.

When planes were full, rewarding customers less made some sense. Airlines didn’t need to spend as much marketing to fill empty seats when there weren’t many empty seats. The problem now is that revenue-based programs reward customers less in a low fare environment precisely when airlines need to invest more in marketing to fill empty seats, and it’s cheaper to offer award inventory than ever.

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