Gogo Inc. (GOGO) has recently announced a partnership with Japan Airlines (JAL) to provide Gogo Vision service on the latter’s entire domestic fleet.
Gogo’s wireless in-flight entertainment service, Gogo Vision, allows passengers to stream rented movies and television shows on their Wi-Fi laptops or tablets. The new offering will allow JAL passengers to have free acscess to both Japanese as well as JAL’s original content, including anime, sports and music.
Earlier, Gogo collaborated with Japan Airlines in Oct 2013 to provide in-flight Internet connectivity to its domestic fleet. Per the deal, Gogo will provide Wi-Fi service to 77 aircrafts in Japan. With this deal, Gogo expanded its service to a foreign country for the first time.
Gogo’s expanded online services will provide added in-flight benefits to passengers. They will be able to rent and stream movies and TV shows from major Hollywood studios wirelessly from an onboard server to their Wi-Fi enabled devices. These contents will be available for viewing for another 24 hours after landing.
The air carriers are heavily investing to make their products and services competitive. With the addition of Google Vision, Japan Airlines will likely get an upper edge over its competitors.
Both Gogo Vision and in-flight Internet connectivity service are expected to be available to JAL passengers beginning summer 2014.
Gogo is an in-flight Internet provider, enabling flyers to surf the Internet through Wi-Fi enabled devices during flights. Additionally, the company provides in-cabin movies and other Hollywood shows to its flyers, giving them full entertainment on board. The company reported revenues of $233.5 million in 2012, a 28.2% increase from $160.2 million in 2011.
Currently, Gogo has a Zacks Rank #4 (Sell). Stocks that have been performing well and are worth considering include Melco Crown Entertainment Limited (MPEL), Westlake Chemical Corp. (WLK) and Tesla Motors, Inc. (TSLA), all carrying a Zacks Rank #1 (Strong Buy).
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