Gogo Inc. (GOGO): 09:29 AM EST, 02/16/2016 (MT Newswires)...

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Re: mauiguy2 post# 1618

Tuesday, 02/16/2016 10:25:09 AM

Tuesday, February 16, 2016 10:25:09 AM

09:29 AM EST, 02/16/2016 (MT Newswires) -- Gogo(GOGO) shares have plunged almost 30% pre-market after American Airlines(AAL) notified the company it may be cancelling its in-flight connectivity contract because it has found a faster service.

"Earlier this month, American notified Gogo(GOGO) that it considers a competitor's connectivity service to offer a material improvement over our early generation air to ground service with respect to a portion of American's fleet representing approximately 200 aircraft," Gogo(GOGO) said. "We plan to submit a competing proposal to install our latest satellite technology - 2Ku - on this fleet. We believe that 2Ku is the best performing technology in the market and look forward to discussing our offer with American."

Gogo's (GOGO) statement follows a decision by American Airlines(AAL) to file a lawsuit in a Texas court on Friday, exercising its rights under its contract.

Gogo (GOGO) recently traded at $9.80, it's lowest since August 2013.

Price: 9.50, Change: -4.39, Percent Change: -31.61