User avatar
LAXintl
Topic Author
Posts: 21212
Joined: Wed May 24, 2000 12:12 pm

Gogo Aircell Plans IPO

Thu Jan 05, 2012 4:23 pm

Over the holiday period, Aircell’s Gogo inflight internet service file SEC prospectus document for an initial public stock offering.

While not listed in the filing, analyst have forecast Gogo would seek at a minimum of about $100mil in proceeds from sale of common stock.

The IPO registration makes for some interesting reading and shows the business model for inflight internet is still far from being a financial success.

While GoGo today equips about 85% of internet equipped aircraft at 10-airlines, plus large cadre of business jets and will have some 1,700 airframes under contract by end of 2012 serving a potential pool of 200million passengers annually the company has experienced some pretty massive ongoing losses to date.

2008 – Loss $122.4mil on $36.8mil revenue
2009 – Loss $142.3mil on $60.1mil rev
2010 – Loss $140.1mil on $97.3mil rev

Also shocking, is the pittance in average revenue it garners on a per passenger basis - mere $0.41 (41 cents) in the first 9-mos in 2011, while only earning a few hundred dollars monthly revenue on a per aircraft basis with rest of earnings going to airlines and 3rd parties.

A huge drag on Gogo earnings is cost of equipment, its network, sales/marking plus engineering and design expenses including cost in obtaining FAA STC aircraft certifications for its installations. 2010 operating expenses were some $171.6mil.


Full SEC filing can be found at:
http://www.sec.gov/Archives/edgar/da...1351260/d267959ds1.htm#rom267959_4

=
From the desert to the sea, to all of Southern California

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos