Satellite operator Intelsat is reportedly in talks with in-flight broadband internet service Gogo to buy its commercial aviation business. Intelsat could spend as much as $500m for the acquisition, according to Bloomberg.
Intelsat already supplies Gogo with satellite coverage and connectivity to Gogo-equipped aircraft around the world.
Earlier this month, Gogo reported that the consolidated revenue of $96.6m in Q2 2020, a decline of 55% from Q2 2019, due to the impact of Covid-19 on demand for both domestic and international air travel.
Net loss of $86m increased from a net loss of $84m in Q2 2019.
In August, Gogo confirmed it is looking to sell its Commercial Aviation (CA) division. “While Covid-19 has significantly impaired global commercial aviation travel and our results for the second quarter, we are encouraged by the strong recovery in business aviation as well as the beginnings of a recovery in global commercial aviation which has continued into August,” said Gogo CEO Oakleigh Thorne. “Going forward, we are focused on maintaining the strength of our franchise and realising the value of CA through a potential sale of the division.”