Why Gogo (GOGO) Stock Is Plunging Today

GOGO shares were down 40%

Gogo (GOGO) stock is dropping today following a decision by American Airlines (AAL).

Gogo American Airlines ViaSat VSAT AALAmerican Airlines is suing Gogo to end its contract with the internet service provider. It claims it’s allowed to do this if a better option becomes available to it. It’s planning to make ViaSat (VSAT) its new internet service provider, reports Business Insider.

Gogo has commented on the news of the American Airlines’ lawsuit to drop it. Switching to ViaSat will give AAL the same internet service provider as JetBlue (JBLU), United Airlines (UAL) and Virgin America (VA), Business Insider notes.

According to TheStreet.com, Gogo has the ability to make a competing offer to American Airlines due to its contract as an internet service provider. The company wants to install its new 2Ku satellite technology on the company’s airplanes.

GOGO shares were down 40%, AAL shares were up slightly and VSAT shares had increased by 9% as of Tuesday morning.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/02/gogo-american-airlines-viasat-vsat-aal/.

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