I am @Compound248 and this is the next installment in our Business Breakdowns mini-series focused on Digital Infrastructure. In this episode, we will talk about a company that delivers that airbourne experience, Gogo. Known for its eponymous inflight WiFi service, Gogo is frequently misunderstood, having undergone a transformation to focus purely on the business, or private, aviation industry. It sells equipment that gets installed on a private aviation airplane, and then, in infrastructure like fashion, monetizes that equipment with high margin service revenue for decades. We’re fortunate to be joined by Oak Thorne, who has led Gogo for 20 years into the success it is today.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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Show Notes
[00:04:02] - [First question] - Gogo’s history and how his history intersects with it
[00:08:03] - His background and what lead him to joining Gogo
[00:10:01] - A primary focus on US airlines and high-end air travel specifically
[00:12:33] - What the competitive landscape looks like today and how many planes they have
[00:14:15] - Whether the formerly unaddressable planes will make their way into their fleet
[00:16:04] - Their product offerings today and the differences between them
[00:19:26] - Overview of their business economics and their digital infrastructure
[00:21:31] - Unit economics and labor and install costs
[00:24:17] - CapEx, service revenue, and a projected 20% system growth
[00:25:55] - Cost structure margin on their recurring service revenue
[00:27:25] - Momentum of business growth year-over-year
[00:28:29] - How the ATG network actually works and how the 5G connection improves it
[00:30:44] - What portion of their business comes from aftermarket installations
[00:32:18] - Competitive nature of this sector and if someone could come after Gogo
[00:40:42] - Describing the differences between GeoSatellite and Elon’s Starlink
[00:46:19] - Reasons why Starlink might become a competitor
[00:48:56] - How Gogo’s 5G and global broadband product are offensive and defensive
[00:51:24] - Portion of new US delivery aviation planes built with in-flight WiFi solutions
[00:55:01] - How long he anticipates this growth runway to continue
[00:56:27] - Potential risks to Gogo from a legal and regulatory perspective
[00:59:50] - Cyclicality of their clients and suspended business periods
[01:04:57] - Two key lessons for others attempting to build and lead a company
