Gogo shares dive on contract flap with American Airlines

SHARE Gogo shares dive on contract flap with American Airlines

Shares of Chicago-based Gogo plummeted Tuesday after American Airlines moved to possibly replace the company as its inflight Internet provider on some of its planes.

The inflight wireless company’s share price was down about 30 percent at midday Tuesday.

American Airlines filed a lawsuit in Texas last week seeking a court opinion on whether it can break its Gogo contract covering its fleet of 737s. The airline wants to use ViaSat.

Gogo declined to comment on the litigation. In an emailed statement, the company said “American is a valued customer of ours and we look forward to resolving the disagreement.”

Gogo said it plans to submit a proposal to install its newest satellite technology, called 2Ku, on the American planes.

“We continually evaluate what’s best for our customers,” American Airlines spokesman Casey Norton said. “If Gogo submits a proposal, we’ll certainly consider it.”

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