Connected Aircraft Demand Larger than Passenger Demand?

 In ThinAir
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Photo Credit: United Continental Holdings

[Space News] Airline broadband providers Gogo, Global Eagle Entertainment (GEE), and ViaSat participated in a debate organized Dec. 7 by the Macquarie Group investment bank, discussing whether today’s aeronautical connectivity business, currently valued at less than $1 billion but estimated to grow past $30 billion in 20 years, will be hugely more valuable in the coming years as bandwidth demand by airlines for their own purposes dwarfs demand by passengers.

“‘We view this as a $30 billion industry,’ said Michael Small, chief executive of Chicago-based Gogo, whose U.S.-based air-to-ground business is now expanding to include Ku-band satellites with Gogo’s new 2Ku aeronautical satellite antenna, and going global with satellite capacity worldwide. ‘The industry is not yet at the $1 billion mark, so there is huge growth.’  Gogo expects to report nearly $500 million in revenue in 2015, up from $37 million six years ago.”

 

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