American Airlines drops lawsuit over Gogo Wi-Fi contract

SHARE American Airlines drops lawsuit over Gogo Wi-Fi contract

American Airlines has dismissed its lawsuit seeking to break a contract with Gogo Inc. over inflight Internet service.

Chicago-based Gogo’s share price dropped sharply Feb. 16 on news of the declaratory judgment lawsuit. The case was filed Feb. 12 in Texas.

The lawsuit sought a ruling on whether American could switch inflight Wi-Fi providers for about 200 of its 737 jets. The Gogo contract was for ground-to-air technology; American wanted to switch to ViaSat, which uses newer, satellite-based technology.

American Airlines confirmed Monday it has dismissed the lawsuit.

“If Gogo chooses to submit a proposal in response to a competitive offering, we will evaluate it,” American spokesman Casey Norton said. “No decisions have been made as to the future of Wi-Fi service on the fleet covered by this contract. We will evaluate all of our options.”

Gogo dropped its demand for system performance information from American and said the airline had triggered a 45-day deadline for Gogo to submit a competitive proposal, according to a Feb. 17 filing with the Securities and Exchange Commission.

“Gogo believes that this stipulation provides American with the complete relief it requests … and thus moots the dispute that is the subject of the court action,” the company said in the SEC filing.

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

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