Gogo to Sell Airline In-Flight Wi-Fi Business to Intelsat for $400 Million

By Paul Riegler on 1 September 2020
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Business-class cabin on an American 777-300ER

In-flight Internet provider Gogo announced plans to sell its commercial aviation business to Intelsat, the world’s second largest satellite company, for $400 million.

The company’s commercial aviation business provides in-flight Wi-Fi to airlines such as American and Air Canada.

The transaction, which is subject to customary closing conditions, including review by antitrust regulators and the Federal Communications Commission, is scheduled to close by the first quarter of 2021.

“We are confident Intelsat is the right partner,” said Gogo CEO Oakleigh Throne.

Intelsat, which filed for bankruptcy in May, has debtor-in-possession financing and funding lined up to cover the transaction.

The U.S. Bankruptcy Court for the Eastern District of Virginia gave the transaction a green light Monday afternoon.

“The transaction represents the sound business judgment of the debtors in the case,” the court said.

Gogo entered the in-flight connectivity business with its first customer, American Airlines, in 2008.  The originalGogo service uses air-to-ground technology, while newer systems use much faster satellite connectivity, although the ATG technology has increased in speed over the years as well.

The company’s customer list, in addition to American, includes Aer Lingus, Aeromexico, Air Canada, Alaska Airlines, British Airways, Delta Air Lines, Japan Airlines, United Airlines, and Virgin Atlantic.

(Photo: Accura Media Group)

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