Rates calibrated depending on the personal electronic device, or PED, used, e.g. laptop, smartphone, or blackberry, is one way by which Gogo Inc (NASDAQ:GOGO) can refine its revenue management from connectivity. The looming possibility of the FAA easing restrictions on PEDs on takeoff and landing is an added boon toward this direction.
Significantly, the FCC has recently granted Gogo Inc (NASDAQ:GOGO) a license for its Wi-Fi via Ku-Band enabling Internet connectivity of flights over an ocean. This licensing brings Gogo in-flight connectivity closer for the international flights on Delta Air Lines, Inc. (NYSE:DAL). It also provides tailwinds for Gogo’s in-flight entertainment offerings, which should be attractive to the long-haul airline passengers.
Final take: boarding call heard
Given all these, initiating a position on Gogo Inc (NASDAQ:GOGO) at its current price level indeed holds bright promise. It is worthwhile noting as a recap that bullish sentiments have been expressed by the majority of the analysts, which recently extended overage on the company. Now with a consensus price target of $16.88, Gogo looks like it is finally gaining the attention that was sorely lacking when it debuted in the market.
Arturo Cuevas has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
The article Why In-Flight Wi-Fi Is Earning Its Wings originally appeared on Fool.com.
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