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Gogo on Track for Record Aircraft Installs in 2015


News provided by

Gogo

Jan 26, 2015, 09:30 ET

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ITASCA, Ill., Jan. 26, 2015 /PRNewswire/ -- Gogo Inc. (NASDAQ: GOGO), a leading global aero communications service provider, announced today that it's on track for record aircraft installs in 2015.  The company now has a backlog of well more than 1,000 commercial aircraft, more than half of which are expected to be installed in 2015.  With the large backlog in commercial aviation and the company's current trends in business aviation, Gogo expects to install a record number of aircraft in 2015. Recently announced domestic regional jet installs and certain international fleet wins are expected to make up the bulk of the installs for 2015.

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Gogo expects to bring 500 additional commercial aircraft online by the end of this year, which would bring the total number of commercial aircraft equipped with its connectivity service to more than 2600.  Of the new installs, around 25 percent are expected to be international aircraft.

In addition to new installs, Gogo continues to upgrade previously-installed ATG systems to its next generation ATG-4 technology, which triples peak speeds to the aircraft and brings more capacity to the sky. More than a third of the aircraft on which ATG was installed have been upgraded to ATG-4.  Gogo expects close to half the commercial fleet operating in the U.S., or more than 1,000 aircraft, to be upgraded to the newer technology by the end of 2015.

"Operationally, what the talented group at Gogo has accomplished and is set to accomplish in 2015 is unprecedented in this industry and continues to amaze me," said Gogo's president and CEO, Michael Small.  "Between installing new service and upgrading our original ATG service to ATG-4, our installation team expects to touch 1,000 aircraft in various parts of the world in 2015. We are excited about where we are going in terms of bringing new aircraft online and adding significantly more capacity to the network."

In addition to the ATG-4 roll-out, Gogo is on track to launch its global satellite solution - 2Ku – in the second half of 2015. 2Ku is expected to bring peak speeds of more than 70 Mbps to an aircraft, a 20 fold increase when compared to Gogo's original ATG technology.

"2Ku will bring significantly more bandwidth at what we estimate will be half the costs of competing solutions available in the market today," added Small.  "We believe this technology is transformative for global aviation in terms of Internet speeds, capacity, coverage, costs and reliability."     

About Gogo
Gogo is a leading global aero-communications service provider that offers in-flight Internet, entertainment, text messaging, voice and a host of other communications-related services to the commercial and business aviation markets. Gogo has more than 2,000 commercial aircraft equipped with its services on more than 10 major airlines. More than 6,000 business aircraft are also flying with its solutions, including the world's largest fractional ownership fleets. Gogo also is a factory option at every major business aircraft manufacturer.

Gogo has more than 800 employees and is headquartered in Itasca, IL, with additional facilities in Broomfield, CO, and various locations overseas. Connect with us at www.gogoair.com and www.business.gogoair.com.

Cautionary Note Regarding Forward-Looking Statements Certain disclosures in this press release and related comments by our management include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements include, without limitation, statements regarding our business outlook, industry, business strategy, plans, goals and expectations concerning our market position, international expansion, future operations, margins, profitability, future efficiencies, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words "anticipate," "assume," "believe," "budget," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "future" and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release.

Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to have been correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, the following: the loss of, or failure to realize benefits from, agreements with our airline partners; any inability to timely and efficiently roll out our technology roadmap for any reason, including regulatory delays, or the failure by our airline partners to roll out equipment upgrades or new services or adopt new technologies in order to support increased network capacity demands; the loss of relationships with original equipment manufacturers or dealers; our ability to develop network capacity sufficient to accommodate demand; unfavorable economic conditions in the airline industry and/or the  economy as a whole; our ability to expand our international or domestic operations, including our ability to grow our business with current and potential future airline partners; an inability to compete effectively with other current or future providers of in-flight connectivity services and other products and services that we offer, including on the basis of price, service performance and line-fit availability; our reliance on third-party satellite service providers and equipment and other suppliers, including single source providers and suppliers; our ability to successfully develop and monetize new products and services, including those that were recently released, are currently being offered on a limited or trial basis, or are in various stages of development; our ability to deliver products and services, including newly developed products and services, on schedules consistent with our contractual commitments to customers; the effects, if any, on our business of historical or future airline mergers, including the recent merger of American Airlines and U.S. Airways; a revocation of, or reduction in, our right to use licensed spectrum or grant of a license to use air-to-ground spectrum to a competitor; our use of open source software and licenses; the effects of service interruptions or delays, technology failures, material defects or errors in our software or damage to our equipment; the limited operating history of our CA-NA and CA-ROW segments; increases in our projected capital expenditures due to, among other things, unexpected costs incurred in connection with the roll-out of our technology roadmap or our international expansion; compliance with U.S. and foreign government regulations and standards, including those related to the installation and operation of satellite equipment and our ability to obtain and maintain all necessary regulatory approvals to install and operate our equipment in the U.S. and foreign jurisdictions; our, or our technology suppliers', inability to effectively innovate; costs associated with defending pending or future intellectual property infringement and other litigation or claims; our ability to protect our intellectual property; any negative outcome or effects of pending or future litigation; limitations and restrictions in the agreements governing our indebtedness and our ability to service our indebtedness; our ability to obtain additional financing on acceptable terms or at all; fluctuations in our operating results; our ability to attract and retain customers and to capitalize on revenue from our platform; the demand for and market acceptance of our products and services; changes or developments in the regulations that apply to us, our business and our industry; the attraction and retention of qualified employees and key personnel; the effectiveness of our marketing and advertising and our ability to maintain and enhance our brands; our ability to manage our growth in a cost-effective manner and integrate and manage acquisitions; compliance with anti-corruption laws and regulations in the jurisdictions in which we operate, including the Foreign Corrupt Practices Act and the (U.K.) Bribery Act 2010; restrictions on the ability of U.S. companies to do business in foreign countries, including, among others, restrictions imposed by the OFAC; and difficulties in collecting accounts receivable.

Additional information concerning these and other factors can be found under the caption "Risk Factors" in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2014.

Any one of these factors or a combination of these factors could materially affect our financial condition or future results of operations and could influence whether any forward-looking statements contained in this press release ultimately prove to be accurate. Our forward-looking statements are not guarantees of future performance, and you should not place undue reliance on them. All forward-looking statements speak only as of the date made and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Media Relations Contact:

Investor Relations Contact:

Steve Nolan

Varvara Alva

630-647-1074

630-647-7460

[email protected]

[email protected]

SOURCE Gogo

Related Links

http://www.gogoair.com

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