NEW YORK, Oct 31 (Reuters) - The U.S. decision to allowgreater use of electronic devices on flights is "anotherfavorable tailwind" for Gogo Inc., the internetprovider for 80 percent of the U.S. commercial aircraft fleet,its chief executive told Reuters on Thursday.
"If people have their device out, it's much more likelythey'll use it," CEO Michael Small said in an interview.
Small said the Federal Aviation Administration rules won'tgenerate a significant short-term revenue increase for Gogo,
But the move, announced by the announced by FAAadministrator Michael Huerta, could yield benefits over the longterm if the U.S. move is followed by other nations' regulators,Small said.
Revenue gains directly attributed to the FAA decision won'tbe significant largely because WiFi use is already growing sorapidly, Small said.
Shares in Gogo rose more than 6 percent at one point Thursdayin the heaviest traded volume in a month, and in late tradingwere up 5.4 percent at $18.80.
Itasca, Illinois, based Gogo on Monday signed a contractwith Japan Airlines to provide in-flight internet service on thecarrier's domestic fleet.
Vodafone (VOD)