Dispute between Gogo and AA cools off for now.

American Airlines announcement of its intention to cancel its contract with Gogo because of slow speeds and intermittent service led to a hectic week or so of legal maneuvering. Now Gogo has agreed to AA's interpretation of the contract language and says that it will come up with a new proposal to fix any problems and move its service forward. The proposal would be based on an upgrade to the satellite modem used with its 2Ku and Ku satellite technologies to dramatically increase throughput to users on planes in the U.S.

While the contractual language allows American Airlines to use a different provider (ViaSat was mentioned in some reports), Gogo is hoping to hang on to its biggest client. Anand Chari, Gogo’s CTO said, “Gogo’s next generation modem is being built with a lot of room to spare so it will be ready to handle data delivered from next generation high throughput satellites and beyond...” and Gogo CEO Michael Small said that the company would send American Airlines its proposal by March 20.

Gogo claims their improved service speeds will ultimately be capable of 400 Mbps and this, Chari said: “...will allow our customers to seamlessly upgrade to the new Ku High Throughput Satellites (HTS) that have just started to be launched, and the massive-scale low earth orbit (LEO) constellations planned over the next decade.”