Gogo shares rebound after American Airlines drops lawsuit

American Airlines and Gogo lawsuit

American Airlines has dropped its lawsuit against in-flight WiFi provider Gogo, and the company’s shares jumped nearly 10% on Monday.

Gogo shares

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 airplanesĀ receive a 70 megabit-per-second connection, which is about four times faster than the average home broadband connection.

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“If Gogo chooses to submit a proposal in response to a competitive offering, we will evaluate it,” said Casey Norton, communications director for American.

Written by John Howard

John Howard

John Howard is the Business Editor at BusinessPundit.com. He is an avid watcher of markets, a wallflower of retail, and a fan of disruptive businesses that utilize technology and unique ideas to form brilliant new ways of doing business. He can be reached at Student Loan Ninja