Gogo Shares Plunge More Than 20% After AT&T Announces In-Flight Wi-Fi Plans

Apr 29, 2014 11:00 am

Skift Take

The drop was inevitable after AT&T’s news, but Gogo still has a monopoly on in-flight connectivity and it will take AT&T years to catch up.

— Samantha Shankman

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Gogo Inc.

Gogo's private jet sits in front of a Japan Airlines aircraft. Gogo Inc.

Shares of in-flight Internet provider Gogo Inc. are sinking more than 20 percent following news that AT&T would be competing to connect fliers to the Internet.

AT&T is promising fliers faster connection speeds, using technology from Honeywell Aerospace to connect with its 4G LTE network ground network by the end of 2015.

Gogo currently dominates the in-flight Internet market, providing an air-to-ground connection for passengers on Air Canada, Alaska Airlines, American Airlines, Delta Air Lines, United Airlines, US Airways and Virgin America.

Global Eagle Entertainment Inc.’s Row 44 provides a faster satellite Internet connection for fliers on Southwest Airlines and some foreign airlines. That company’s shares fell 4 percent.

The other player is ViaSat, along with partner LiveTV, which is slowly rolling out satellite service on JetBlue Airways jets.

GOGO Chart

GOGO data by YCharts

Copyright (2014) Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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