Gogo expands AA deal; survey points to low adoption rates


Gogo (GOGO +0.9%) has expanded its existing deal with American Airlines to cover 30 new Bombardier CRJ-900 jets set to be used on regional routes. Gogo's in-flight Wi-Fi services are already available on 850+ American planes.

Meanwhile,a TripAdvisor survey of 4.3K+ U.S. air travelers found 90% of them rarely or never buy in-flight Wi-Fi, and only 3% always buy it when available. Unsurprisingly, cost was named the biggest drawback - for a single trip Gogo charges $5/hour or $16 for a 24-hour pass.

The survey data comes as AT&T hatches plans to launch an in-flight service it suggests will be priced aggressively.

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Comments (7)
  • quanius
    , contributor
    Comments (24) | Send Message
     
    Hilarious how SA is already working the latest GOGO shorting campaign via the "Breaking News". I'm convinced there has to be a correlation between some group of hedge funds' positions and SA's stories. Too much of an undertone in to counter any positive news with something negative that investors already know about (subscriber rates and ATT).
    5 Jun 2014, 02:59 PM Reply Like
  • PairofdiceBird
    , contributor
    Comments (15) | Send Message
     
    The continual growth in revenues is telling. They are, after all, the 19th fastest growing company in Chicago.

     

    The further need and desire to be connected will grow, especially internationally. If GOGO's competitors didn't recognize this, they certainly wouldn't be looking to grow its presence or enter in the marketplace.

     

    Moreover, demand will rise once connectivity improves and speeds increase ten fold. They are clearly the leader and are setting themselves up to remain that way for years to come - if they're not acquired before that.
    5 Jun 2014, 03:11 PM Reply Like
  • artnoon
    , contributor
    Comments (25) | Send Message
     
    S.A. is a joke. I blasted one of their storytellers who said Twitter was going to drop 20 to 30%. That was 3 days ago. I wrote that all these guys do is try to knock a stock down only to see it rise the next day.
    SA removed my reply because I said some nasty things aboujt the poster who was a hedge fund manager.
    5 Jun 2014, 03:42 PM Reply Like
  • markcc
    , contributor
    Comments (2889) | Send Message
     
    Low adoption rates and 9/11 effects killed Boeing's Connexion service, which had contracts with United, American and Delta. They all pulled out.
    5 Jun 2014, 03:57 PM Reply Like
  • quanius
    , contributor
    Comments (24) | Send Message
     
    Missed you Mark =) Not sure of your point but is it fair to assume that airborne Wifi is here to stay? The speed/price is almost at the value point of a larger industry sustaining customer base..... similar to the old backpack cell phone user adoption but much faster.
    5 Jun 2014, 04:39 PM Reply Like
  • markcc
    , contributor
    Comments (2889) | Send Message
     
    quanius, I first used airline texting in about 2000. At that time the airline was offering an unlimited text plan for $5 a flight and a voice plan for phone calls for a whole flight for $25.99, at that time a bargain. I don't remember the provider, but they went bankrupt years ago. On the adoption issue, I am the geek that walks up and down the aisle looking for the people buying the online services provided, just for investment purposes. It is my belief that less than 10 percent of the passengers pony up for the video or data inflight. On a 170 seat plane, that would be 17X$8, or about $136 per flight. And yes a lot of airlines have just been giving free video, (including Southwest) to push their data and video products. Is that enough? I don't know.
    7 Jun 2014, 11:10 PM Reply Like
  • globebag
    , contributor
    Comments (25) | Send Message
     
    SA under SEC investigation
    8 Jun 2014, 03:38 AM Reply Like
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