Aircell on record about financing installations of Gogo

Aircell wants to set the record straight about the “black box mystery” surrounding airlines’ equipage of its Gogo in-flight broadband system.

Speaking to RWG for an upcoming Flight feature about in-flight connectivity, Aircell executive vice-president, airlines John Happ confirms that “some airlines took advantage early on of Aircell providing capital in exchange for other terms and revenue share but in all cases there is significant revenue share”.

The way to think of this, says Happ, is that a portion of an airline’s revenue share is going to be applied back to the pay down of equipment, if that carrier took advantage of capital assistance.

Key quote:

“It is very much so in the airline’s interest to pay that down as quickly as possible so that they are able to participate in far greater revenue shares.”

The Aircell executive notes, however, that there are “many other airlines and aircraft fleets flying today and in the pipeline that simply purchased the equipment and we, of course, share revenue in those scenarios as well”.

He adds: “The main point I’m trying to drive here is that every airline, every Gogo airline, is compensated for every dollar generated, whether through session revenue, media or sponsorship dollars. Every single dollar that comes into that aircraft, whether it be a function of anything the airline or Aircell is doing to create a revenue stream for our onboard product, is being shared with the airlines. We have very aligned interests.”

A big thanks to John and Aircell for providing this information.

I’d also like to thank the World Airline Entertainment Association (WAEA) for allowing non-affiliated press to attend its recent in-flight connectivity single focus workshop. These workshops are invaluable to journalists like me. Here’s why:

I work for the Flightglobal suite of publications, including Flight International magazine, Airline Business magazine, the Air Transport Intelligence news wire and the Flightglobal web site, which includes a dedicated IFEC channel. I am also proprietor of this IFEC/interiors-focused Runway Girl blog.

As such, I am tasked with supplying real-time news headlines on the day of an event – as I did at the WAEA workshop – but also to use information gleaned from the event to develop lengthier articles and features for the magazines and news wires in the weeks and months ahead.

As all modern journalists know, some of the best stories develop over time, but in the meantime, the real-time world begs to be fed in real-time. The WAEA single focus workshops provide plenty of fodder for journalists to fill both requirements, and I look forward to attending the next workshop – on IFEC and seats! – on 17 May at Airbus Operations in Hamburg.

(Photo above from Natalie’s New York Flickr stream)

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One Response to Aircell on record about financing installations of Gogo

  1. Jonathan Norris April 21, 2010 at 1:09 pm #

    Hey Mary,

    Thanks for the ‘plug’ for the WAEA Seats/IFE workshop being held at Airbus Hamburg on the 17th May immediately prior to the Aircraft Interiors Expo.

    We’re really looking forward to seeing you and many others join us on the 17th and look forward to a great day where we will be discussing many interesting topics.

    Keep up the good work !