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Gogo Commercial Aviation Division Purchased By Intelsat

Gogo Commercial Aviation Division Purchased By Intelsat

Old Sep 1, 2020, 10:33 pm
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Gogo Commercial Aviation Division Purchased By Intelsat

Intelsat (currently in bankruptcy), has reached an agreement with Gogo to acquire their entire Commercial division. I haven't seen any mention from Delta or T-Mobile, or even Gogo or Intelsat, how the change in ownership will affect customers after the deal closes.

https://skift.com/2020/09/01/intelsa...om-bankruptcy/
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Old Sep 2, 2020, 9:57 am
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Originally Posted by ekozie
Intelsat (currently in bankruptcy), has reached an agreement with Gogo to acquire their entire Commercial division. I haven't seen any mention from Delta or T-Mobile, or even Gogo or Intelsat, how the change in ownership will affect customers after the deal closes.

https://skift.com/2020/09/01/intelsa...om-bankruptcy/
I expect an increase in Gogo pricing. Not happy.
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Old Sep 2, 2020, 11:00 am
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Originally Posted by hnewman
I expect an increase in Gogo pricing. Not happy.
Why? I see no reason why a different owner of the service would change the pricing dynamics.

I could see a small effect the other way as GOGO (in BK) would have been less willing to go low on rates to build future value. They would be looking to set pricing to maximize current revenue for both cash flow and looking good to a buyer (I say revenue because incremental cost of service is about $0).

If this was a consolidation issue I would agree. But GOGO "owned" DL customers and now Intelsat does.

Personally I and with Nancy Reagan on this issue. Just say no. The service is so sucky better just to relax and enjoy the down time.
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Old Sep 2, 2020, 11:20 am
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Originally Posted by exwannabe
Why? I see no reason why a different owner of the service would change the pricing dynamics.

I could see a small effect the other way as GOGO (in BK) would have been less willing to go low on rates to build future value. They would be looking to set pricing to maximize current revenue for both cash flow and looking good to a buyer (I say revenue because incremental cost of service is about $0).

If this was a consolidation issue I would agree. But GOGO "owned" DL customers and now Intelsat does.

Personally I and with Nancy Reagan on this issue. Just say no. The service is so sucky better just to relax and enjoy the down time.
Gogo allows me to finish email work so when I get home I can relax and be with my wife. I love the service for that reason.
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Old Sep 2, 2020, 11:58 am
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Problem is that GoGo could not charge enough to make a go of it. With loads way down, the overhead per user shoots up. For Intelsat to make this work, rates will have to increase quite significantly. Whether that is worth it, is always a subjective judgment. Those who can bill it to a client don't worry.

Even at 2x-3x the current pricing, it's still a good deal if you can bill a couple of hours work during the flight (which you otherwise could not).

Last edited by Often1; Sep 2, 2020 at 3:36 pm
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