Problems at Gogo (GOGO)
Gogo (NASDAQ: GOGO — $1.64 billion) provides inflight internet to around 8,000 business jets, primarily in North America. Investors believe Gogo is turning into a highly durable cash flow machine with recurring revenues, customer lock-in, and room to expand in the underpenetrated business aviation connectivity market. The company is a favorite among value investors who believe it will be able to compete favorably against SpaceX’s Starlink because of its premium service, legacy relationships, apolitical stance, and its ability to be easily installed on smaller jets. After analyzing commentary from Starlink customers and industry participants, The Bear Cave concludes the opposite: Starlink is exceeding expectations in business aviation connectivity and will continue to do so at the expense of Gogo.
Starlink’s leadership in aviation connectivity is best exemplified in the supersonic market. On November 15, 2024, Hermeus, a startup developing hypersonic jets, tweeted that they integrated Starlink into their Quarterhorse aircraft prototype from start to finish in just 17 days. The CEO called it “one of the first uncrewed jets to be operated over Starlink.”
The next day, Blake Scholl, CEO of Boom Technology, a supersonic aircraft company, boasted that Boom integrated Starlink into its supersonic jet in just fifteen days. Notably, Mr. Scholl was able to use Starlink’s consumer-focused product, Starlink Mini, to provide fast WiFi at supersonic speeds.
In a January 2025 blog post, Boom Technology wrote,
“This isn’t the first time Starlink has been used to expand what’s possible, but it is almost certainly the first time anything close has been demonstrated using less than $1,000 in equipment in two weeks.”
The Bear Cave believes that Starlink Mini will be increasingly used as a low-cost alternative for business aviation connectivity. For aircraft flying faster than ~550mph, Starlink Mini offers “Business 20 GB at $2,000/mo” and “Business Unlimited at $10,000/mo.” In April 2025, Avionics Network began offering $1,250 pilot kits “with everything needed to add a Starlink Mini system as a portable system.”
Consumer love for Starlink and Starlink Mini in aviation is widespread online.