Replies to post #1618 on Gogo Inc. (GOGO)

[uksausage]

Why is there a law suit involved?
Seems every one is working according to their contract and GOG may well provide an upgrade to Ku2 for a decent price to be competitive.

Could be buying opportunity of a life time

200 planes is all that American had using ATG and they may well get upgraded plus more instals.

Still why the law suit?

[detearing]

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