American Airlines Drops Gogo Lawsuit

American welcomes proposal against a “competitive offering” from the in-flight Wi-Fi service provider.

American Airlines will not pursue a lawsuit against in-flight internet access provider Gogo after all, after receiving clearance to enter a competitive business proposal phase with the company. In a press release, Gogo confirmed that American “dismissed the declaratory judgment action it filed against Gogo on February 12, 2016.”

According to a filing from Gogo with the Securities and Exchange Commission, the original lawsuit asked a Texas court to allow American to exit from their contract with Gogo, citing a clause that allowed the airline to re-negotiate if they could find better service elsewhere. On the same day the lawsuit was filed, Gogo requested more information from American, including “information relating to the system performance and functionality of the competitive technology.”

Five days later, the in-flight internet service provider decided to change course and accept the letter from American. As a result, Gogo now has less than 45 days to submit a pitch to the airline for their latest satellite-based technology.

“Gogo believes that this stipulation provides American with the complete relief it requests in the Prayer for Relief in its February 12, 2016 Petition,” Gogo wrote in their SEC filing. “Thus moots the dispute that is the subject of the court action.”

Gogo first showcased their satellite-based 2Ku technology at the 2016 Consumer Electronics Show in Las Vegas. A spokesperson for American told the Chicago Sun-Times they would entertain a new bid from their current service provider.

“If Gogo chooses to submit a proposal in response to a competitive offering, we will evaluate it,” Casey Norton, spokesperson for American Airlines, told the Chicago newspaper. “No decisions have been made as to the future of Wi-Fi service on the fleet covered by this contract.”

The Fort Worth Star-Telegram reports the airline may have found a more competitive product in competitor ViaSat, which currently provides in-flight internet service to competitors JetBlue, United Airlines and Virgin America. Around 200 aircraft would be affected if American were to drop Gogo in favor of newer technology.

[Photo: Getty]