American Airlines has dropped its lawsuit against in-flight WiFi provider Gogo, and the company’s shares jumped nearly 10% on Monday.
The lawsuit filed by American Airlines included 200 of its aircraft.
Gogo and American have a contract through 2018, however, the airline is hoping to receive an upgrade from its current 3G connections.
Under terms of the current contract, if American receives a better proposal, Gogo must make a counteroffer to improve its technology
The lawsuit had asked a judge to give Gogo official notice that American was considering a competing product.
American Airlines claims that ViaSat, a provider on United Airlines, JetBlue, and Virgin America, offers significantly faster internet speeds.
Gogo said in a regulatory filing that it “looks forward to presenting a proposal to install 2Ku, our latest satellite technology.”
Gogo’s 2Ku technology uses satellites and complex onboard antennas to deliver a much better Wi-Fi experience for flyers. When equipped with 2Ku airplanes receive a 70 megabit-per-second connection, which is about four times faster than the average home broadband connection.
“If Gogo chooses to submit a proposal in response to a competitive offering, we will evaluate it,” said Casey Norton, communications director for American.