American Airlines sued service provider because "Internet in the airplane is slow"

ByIgor Leandro

Nowadays, even when aboard an airplane, the Internet has become available in the sky, and the era is literally leading to the Internet at all times. It is full of dreams that I could not imagine thinking about a long time ago, but as the speed of such in-flight Wi-Fi is slow,American AirlinesIs an in-flight Wi-Fi provider's "GogoIt is obvious that it is calling for the cancellation of the contract by filing an appeal against.

American considers change to in-flight Internet service in pursuit of faster speeds | | Dallas Morning News
http://aviationblog.dallasnews.com/2016/02/american-considers-change-to-in-flight-internet-service-in-pursuit-of-faster-speeds.html/

American Airlines sues Gogo, may change in-flight Internet service | The Star-Telegram
http://www.star-telegram.com/news/business/aviation/sky-talk-blog/article60577901.html

In American Airlines, we have contracted with Gogo, an in-flight Wi-Fi provider, to realize an Internet environment provision service in the air, but according to the lawsuit, American Airlines said that due to the reason that the Internet connection speed provided by Gogo is slow It is said that they are requesting the cancellation of the contract. Gogo does not respond to the cancellation of the contract and American Airlines has filed a complaint with the Texas court on February 12.

According to American Airlines complaint, Gogo, the largest in-flight Wi-Fi provider in the United States, does not fulfill the agreement content with American Airlines in 2012 and has not responded to the contract with the company. "The agreement entered includes" American Airlines finds outstanding products superior to current Gogo's services, Gogo can not provide services comparable or superior to that, and if American Airlines is not satisfied, cancel the contract Although there is a clause that American airlines notify Gogo about the contents of other companies' services, Gogo has not been able to provide a service that exceeds this, but it is regarded as the reason for terminating the contract I will.

AA-v-Gogo-Lawsuit


Gogo is a company that provides in-flight Wi-Fi service to more than 9000 aircraft nationwide, and is mainly equipped with an air-to-air transceiver that transmits and receives radio waves from the ground station installed on the ground to the sky. Ground (ATG) "system is adopted. Companies such as "ViaSat" which provides net lines via artificial satellites, on the other hand, realized connection speed exceeding the ATG method, and American airlines are dissatisfied with this. With Gogo's ATG methodPer machineThe maximum speed is 3 Mbps, and even with the "second-generation" hybrid system combining ATG and satellite system, 10 Mbps is the limit. It is obvious that this can not provide a satisfying line speed to Wi - Fi terminals that exist in mass in the plane.

One of the latest satellite-based providers such as ViaSatPer terminalThe speed of 12 Mbps has reached the level that it is possible to play music and video streaming, so American Airlines wanted Gogo to improve the situation. The satellite system is adopted by United Airlines competing with American Airlines, Southwest Airlines, JetBlue Airlines and others.

In addition, the ATG system can only provide service on land in principle, whereas the satellite system seems to be a major point that the convenience difference that it can be used unconditionally if it is within reach of radio waves . You can grasp the differences and appearance around that by looking at the following article.

Net connection by airplane in-flight Wi-Fi is realized like this - GIGAZINE


In response to American Airlines' complaint, Gogo issued a report "Form 8-KSubmitted. Among them, Gogo said that "American Airlines is an important customer for our company and hopes that the disagreement of agreement arising from the interpretation of the content of the contract causing the lawsuit matter will be resolved" I want to advance. The company plans to propose "2 Ku" technology, one of the latest technologies, to American Airlines.

Gogo Inflight Internet - Investors - SEC Filings


The stock market is also reacting to this case, and Gogo's stock price of Nasdaq shows a situation that it falls by 27%.

Gogo Inc. (GOGO) Stock Chart - NASDAQ.com


As long as it is a long time ago, in-flight Wi-Fi, which was a banzai just by connecting, has become a condition where speed is usually emphasized, and it is just a situation that even "one year a year" can be said. Interest will be gathered as to what kind of countermeasure Gogo will take.

ByDaniel Lobo