Gogo Postpones Launch of 5G System

Gogo Business Aviation has announced a delay to the launch of its Gogo 5G system due to a design error. Following the delay, Gogo now expects to deliver its 5G system in the middle of 2024 and will be providing periodic updates until the launch.

The error is with a non-5G component in the chip which was designed by a third-party subcontractor, according to Gogo.

“We are disappointed in this delay, but remain confident that Gogo 5G will deliver better performance and better value than competitive ATG or GEO satellite solutions,” said Sergio Aguirre, president and Chief Operating Officer, Gogo.

Gogo expects to remain on budget for the 5G project, however anticipates a reduction in revenue of approximately $7 million in 2023, additionally deferring about $13 million in operating and capital expense from 2023 into 2024.

The connectivity services provider plans to share more definitive details during its second quarter 2023 earnings call, which will be on 7 August 2023.