American Airlines withdraws legal action against Gogo

CHICAGO - Gogo Inc. ended a legal dispute over contract terms with American Airlines Group Inc., though the airline is still considering a switch to a competitor for in-flight Wi-Fi service on about 200 planes.

Earlier this month, American had filed the action in a Texas district court asking a judge to protect its right to terminate its Gogo contract if the airline secured a better Wi- Fi service offer. American is considering Gogo's competitor ViaSat Inc. for faster, cheaper service. The contract gives Gogo a chance to prove to American that it can beat competing offers.

American spokesman Casey Norton confirmed that the Fort Worth, Texas-based airliner won't pursue the case.

"Gogo can submit a proposal and we will evaluate their proposal when we receive it," Norton said.

To contact the reporters on this story: Michaela Ross in New York at mross113bloomberg.net; Mary Schlangenstein in Dallas at maryc.sbloomberg.net To contact the editors responsible for this story: Crayton Harrison at tharrison5bloomberg.net Paul Barbagallo