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ViaSat +8.7% as American Airlines boosts order; Gogo -4.5%

Published 11/09/2016, 01:08 PM
ViaSat +8.7% as American Airlines boosts order; Gogo -4.5%
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  • ViaSat (NASDAQ:VSAT) is zooming, +8.7%, and Gogo (NASDAQ:GOGO) is sliding 4.5% as American Airlines boosts its order with ViaSat to include faster Wi-Fi for 500 more domestic aircraft.
  • American had split an order between the two this summer: 100 new Boeing (NYSE:BA) 737 Max planes to be outfitted by ViaSat, and 130 Airbus A319s and A320s to get Gogo's 2Ku satellite service. But Gogo warned this summer that some 550 planes were "subject to deinstallation at any time at American's option."
  • Gogo will still be deploying on other domestic aircraft, American says, and Panasonic (OTCPK:PCRFY) will keep servicing the international wide-body aircraft.
  • Gogo calls the move "old news" and says "it doesn't change our business outlook and financial guidance."

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