The largest carrier in the US is looking to dump its internet provider Gogo in favour of competitor ViaSat, arguing that the connection speeds on offer to AA passengers under Gogo are not up to scratch. 'Alternative service providers are offering faster, more reliable and less expensive satellite-based Wi-Fi,' said AA in its lawsuit of ViaSat, whose clients include rival carriers United, JetBlue and Virgin America. According to a recent survey cited in AA's lawsuit, 66 per cent of airline customers consider Wi-Fi availability when choosing a flight. 'Nearly one in five customers have switched from a preferred airline to another carrier because of better Wi-Fi offerings,' the lawsuit claims.
Contract struggle
The agreement between the two companies permits the airline to opt-out in favour of a competitor if a materially better service offer is found, so long as Gogo is given sufficient time to make a counter-offer competitive enough to keep the contract. The lawsuit filed by AA has asked a Texas court to issue 'a declaration under the contract that the conditions required for it to provide notice as to certain American aircraft have been satisfied.' In a short regulatory filing submitted to the Securities and Exchange Commission on Tuesday, Gogo said that it had 'no comment of the merits of this litigation' but that it had only received such notification from the airline earlier this month. Gogo intends to make a counter-offer to AA involving the installation of its 2Ku satellite technology on the 200 AA planes which currently use Gogo's ground-to-air connectivity system. Gogo's stock tumbled 27 per cent on news of the lawsuit. Sources: Ars Technica; The Verge; Wired; Star Telegram
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