Image source: Gogo Inc.

What: Shares of Gogo Inc. (NASDAQ:GOGO) were up 16.2% as of 2:30 p.m. EDT Thursday after the in-flight entertainment specialist revealed in an SEC filing it had received a "proposal from a major airline customer."

So what: More specifically, under the proposal, GoGo says it "would provide connectivity service on a meaningful portion of the airline's domestic fleet that it currently serves, using the company's ATG, ATG-4 and 2Ku technologies."

Recall that Gogo commenced flight testing late last year on 2Ku, its next-generation global connectivity solution that can uniquely provide real-time streaming and live TV programming. At the time, according to Gogo CEO Michael Small, eight airlines had already selected 2Ku since it was first announced in 2014.

Now what: This particular positive development proved enough for Gogo to also announce it intends not to proceed with its offering of $525 million in aggregate principle of 12% senior secured notes due in 2020 -- which was originally slated to close today and would have served to repay existing debt and provide working capital -- "pending further negotiation of the proposal."

To be clear, that also means this proposal is not guaranteed to evolve into a full-fledged deal. But with shares of Gogo still down 37% year to date, and given the prospect of a lucrative new agreement to be reached, it's no surprise to see Gogo stock trading significantly higher today.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.