American Airlines sues Gogo, may change in-flight Internet service

[Hatu]

The Fort Worth-based company filed a lawsuit in district court in Tarrant County on Friday against Gogo, its current Internet provider for in-flight Wi-Fi, saying it notified Gogo that it has found a faster Internet service. In the lawsuit, American says its contract with Gogo allows it to renegotiate or terminate its agreement if another company other than Gogo offers a better service.

After carefully evaluating the new technology and services in the marketplace, American has decided to exercise its rights under the Agreement and recently notified Gogo that ViaSat offers an in-flight connectivity system that materially improves on Gogos air-to-ground system, the suit says.

American says ViaSat offers a faster service that is currently installed on United Airlines, Jet Blue and Virgin America planes. American currently uses Gogo for its regional aircraft and on domestic flights, primarily Boeing 737s.

Read more here: http://www.star-telegram.com/news/business/aviation/sky-talk-blog/article60577901.html#storylink=cpy

 

[jimntx]

If the contract already allows us to switch to a better, faster technology/service, why the lawsuit?  Do we have to have Gogo's permission to dump them?

 

[topDawg]

If the contract already allows us to switch to a better, faster technology/service, why the lawsuit?  Do we have to have Gogo's permission to dump them?

probably. That is the only reason i see. 
 
I like how American is starting to go after some of its vendors who aren't getting the job done. The OEM market really needs a good kick in the ass. I would love to see American and United join Delta in parting out jets, bet those rising OEM prices might slow up a little. 

 

[swamt]

GoGo is more than likely fighting AA over the contract so not to lose them, therefore the suit.  Gogo needs to fix this very quickly or they may very well be done in providing internet service within the airlines. I have always thought by using the ground towers to shoot to a fixed antenna would create a lot of probs with connections as well as speeds.  

 

[jimntx]

And, if that is the case, I could see Gogo suing AA--some breach of contract or other.  But AA suing Gogo?  Particularly since the article says that AA has the right to terminate Gogo as a provider if there is a better service available.

 

[700UW]

The contract has a clause for AA to get out if they find a faster provider and GOGO has a chance to match

 

[jimntx]

I would imagine that AA is their largest customer.  Can they survive loss of same?  However, I learned something here.  I didn't realize it was a ground tower-based system.  No wonder passengers are frequently asking us if the Internet is working.  (We have no procedures for correcting Gogo problems in-flight, nor are there any switches in the cockpit that could be toggled.)  For us, it either comes on at 10,000 feet after takeoff or goes off (if descending) at 10,000 feet.  End of discussion.

 

[IORFA]

Too lazy to look, but the planes I fly all seem to have an on/off switch in the cabin.

 

[eolesen]

It's old data, but losing AA would do a lot of damage to Gogo's share.

 

[jimntx]

Too lazy to look, but the planes I fly all seem to have an on/off switch in the cabin.

True, but the on/off switch is usually wired shut in the ON position so that people can't turn it off.  Some of the newer 737s have a screen on the control panel where you can turn it off, but IIRC you're not supposed to turn off the internet system except in emergencies.
 
Oh, and thanks E.  We are a good size chunk of their business.

 

[kirkpatrick]

>> For us, it either comes on at 10,000 feet after takeoff or goes off (if descending) at 10,000 feet.  End of discussion. <<
 
We do have switches but it's strictly on/off. 
 
I constantly have FAs asking me (as #1) to cycle the switch.  I always refuse, since it seems to me that if I cycle it, those online with no problems get booted off and have to log on again.  Does this make sense?
 
MK

 

[Hope777]

Looks like AA dropped it's suit
 
http://www.star-telegram.com/news/business/aviation/sky-talk-blog/article61775272.html

 

[jimntx]

Evidently, someone overlooked the part about Gogo gets to make a competing offer.  In any case, if the performance improves, we (and the passengers) win.

 

[eolesen]

Evidently, someone overlooked the part about Gogo gets to make a competing offer.

Not so sure about that:

Gogo had disputed that clause in the contract, but Friday agreed to the contract provision and said it would provide a competitive bid within 45 days.

Sounds more like AA had to force Gogo's hand.