Shares of in-flight broadband service provider Gogo (NASDAQ: GOGO) closed Thursday's trading session down by 23%. The company disclosed an amendment to its contract with Delta Air Lines (NYSE: DAL), splitting the airline's in-flight network offerings between Gogo and one or more unnamed competitors.
Under this amendment, the agreement to provide so-called 2Ku high-speed satellite network services to Delta's various aircraft will expire in a staggered fashion, starting in November and running through July 2022. Delta previously had the right to terminate the entire contract if a "materially improved" alternative emerged; the amendment removes that right. Instead, Delta is now free to phase in replacement service providers gradually. The two companies will continue to discuss further developments, and Delta may agree to extend some or all of the proposed expiration deadlines based on Gogo's technical and financial arguments.
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Source Fool.com