Skip to main content

Gogo is mulling a sale of its commercial in-flight internet business after taking a massive hit during the coronavirus (GOGO)

* In-flight internet provider Gogo is considering selling its commercial aviation business.  * The company's CEO, Oakleigh Thorne, said Monday during a conference call with investors that Gogo has had "extensive discussions with multiple parties" and that he's "optimistic that a deal may happen," according to The Verge.  * Gogo works with some of the world's largest airlines, including Delta, American, United, and AirFrance, but its business has been hobbled by the coronavirus pandemic. * Gogo reported a consolidated revenue of $96.6 million in the second quarter, down 55% from the same quarter last year. * Visit Business Insider's homepage for more stories. In-flight internet company Gogo is considering selling its commercial aviation business as the coronavirus continues to take its toll.  Gogo CEO Oakleigh Thorne announced Monday that the company was looking to sell during a conference call following the company's second-quarter earnings report. He noted that while the coronavirus has impacted global aviation, business travel is beginning to recover. The company is only starting to see "the beginnings of a recovery" in commercial aviation, however.  "Going forward, we are focused on maintaining the strength of our franchise and realizing the value of [commercial aviation] through a potential sale of the division," Thorne said.  Thorne added that Gogo has had "extensive discussions with multiple parties" and that he's "optimistic that a deal may happen," according to The Verge.  Gogo works with some of the world's largest airlines, including Delta, American, United, and AirFrance. But the coronavirus pandemic has wiped out a significant portion of Gogo's business. The company laid of 143 workers, mostly in its commercial aviation division, and previously furloughed 600 employees, or about 50% of its workforce.  Gogo reported a consolidated revenue of $96.6 million in the second quarter, down 55% from the same quarter last year. In North America, Gogo's sessions per day prior to the pandemic clocked in at 125,000 — in April, they dropped to 11,000, a decrease of 91%. (The company noted that sessions had risen to 40,000 per day in August, The Verge reports.)  Gogo isn't the only company affiliated with the airline industry that's been hit hard by the pandemic. Global Eagle, a company that provides internet for ships and airlines, filed for bankruptcy in July. Airlines including Virgin Australia, Virgin Atlantic and Colombia's Avianca have filed for bankruptcy as demand from travelers has dwindled. And in March, President Donald Trump signed a stimulus bill that included a $58 billion bailout package for airlines. Analysts expect the aviation industry to be hobbled for years to come. Moody's recently predicted a recovery by the end of 2023 in the best-case scenario.   Join the conversation about this story » NOW WATCH: Why electric planes haven't taken off yet
https://bit.ly/3kxgA8V

Popular posts from this blog

Why an early exec quit unicorn food delivery startup Deliveroo to launch a food business in the middle of a pandemic

* A former Deliveroo exec has launched a market food hall startup in the middle of COVID-19. * Dan Warne was managing director of the unicorn startup until 2019, but has now launched Sessions Market as a community food hall concept to rejuvenate UK towns after the pandemic. * Warne says he hopes to bring his experience from Deliveroo, particularly about customer behavior, to the analogue world of food halls. * The first venue, Shelter Hall on Brighton seafront, launches July 4. * Visit Business Insider's homepage for more stories. On Saturday, the UK's bars, restaurants, and cinemas will fling their doors open to customers for the first time since a strict lockdown commenced in late March. Given continued public health concerns around the coronavirus pandemic, it might be unwise to open a new food business right now. But Dan Warne, a former high-level executive at British unicorn startup Deliveroo, has launched Sessions Market, a series of community-orientated food hal...
Read more

The $136,000 Maserati Levante GTS is a drool-worthy preview of what Ferrari's SUV could be like (FCAU)

* I tested a 2020 Maserati Levante GTS SUV that with thousands in options stickered at approximately $136,000. * The Maserati Levante GTS has a 550-horsepower, twin-turbocharged V8 engine, plus a gorgeous red interior. * The Levante GTS is beautiful, powerful, and fast. That puts it near the top of the luxury, high-performance SUV segment. * But competition is coming — and the Levante is a great preview of what Ferrari may put on the road in the next few years. * Visit Business Insider's homepage for more stories. Let's say you want a Ferrari, but you hail from a strange region where nobody is taught the lore of Maranello sports cars. An SUV is just your style, you decide. So you swing by your friendly neighborhood prancing horse dealership one day and ask if you can look at a couple of utes.  The dealer would thank you for your interest and slip you the business card of a colleague who represents Maserati, which since 2016 has been selling the Ferrari of SUVS, right dow...
Read more

Here's an exclusive look at the pitch deck London fintech Lanistar used to raise $19 million at a $190 million valuation

* London-based fintech startup Lanistar has raised a £15 million ($19 million) funding round from Milaya Capital.  * Founded in 2019, Lanistar is building a personal financial management platform that will launch later in 2020.  * "We're expecting a huge amount of growth upon our launch and have already seen strong interest among our sign ups," Gurhan Kiziloz, founder and CEO of Lanistar, told Business Insider. * Visit Business Insider's homepage for more stories.  The coronavirus lockdown in the UK has brought the importance of managing money into sharp relief. A recent study from Money.com shows that 71% of UK households have saved cash during lockdown, and, with uncertainty about jobs and the economy looming, money management is now front of mind for many. Lanistar, a banking platform with a focus on personal finance, is one company offering tools for consumers to better manage their money. It has just raised a £15 million ($19 million) funding round from Mil...
Read more