Airbus has selected Gogo Inc (NASDAQ:GOGO) to become the lead supplier for a connectivity program known as HBC – High Bandwidth Connectivity. With the designation, Gogo’s global satellite solution that is commonly referred to as 2Ku will be installed on such Airbus aircraft models as A380, A330 and A320. This will mean that once airlines place an order with Airbus, the deliveries will already be installed with Gogo’s 2Ku technology before they leave the factory. However, that will happen after system certification and a successful offerability process.
“The selection is acknowledgement of the traction we’ve made with 2Ku in the marketplace,” Gogo’s chief technology officer and executive vice president, Anand Chari, said.
Factory option
This will be the first time that the Chicago, Illinois-based technology firm will be offering its solution as a factory option for commercial aircraft instead of as an aftermarket option. The company’s vice president of product management said this was a major milestone that would boost its image in the eyes of other aircraft manufacturers.
Passengers on aircraft fitted with Gogo’s technology will now be able to enjoy high bandwidth speeds while on board for business or entertainment purposes. The technology will also be useful in linking the entire flight crew including flight engineers, pilots and flight attendants with the aircraft itself.
At present, 13 commercial airlines have shown interest in the technology and Gogo has received commitment to install the 2Ku technology on over 1,500 aircraft belonging to those airlines. Most of the commercial airlines will have the technology fitted before 2019.
Aftermarket option
Besides commercial airlines, the Chicago, Illinois-based technology firm’s wireless entertainment services and in-flight connectivity are also installed on over 4,200 business aircraft. Gogo’s technology also comes as a factory option that is offered by most business aircraft manufacturers.
As an aftermarket option, Gogo has inked partnerships with commercial airlines numbering more than 17 and this has seen the 1000-strong workforce company install the in-flight connectivity technology in more than 3,000 commercial airplanes.
In Tuesday’s trading session shares of Gogo Inc shot up by 6.78% to close the day at $11.65 a share.
