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February 26, 1989

GTE AIRFONE CHIEF EXECUTIVE RESIGNS

By CBR Staff Writer

The chief executive of GTE Corp’s GTE Airfone airliner-to-ground telephone service, John Goeken – he created the service and later brought in Western Union as an investor, has resigned, complaining that GTE, which ultimately bought both Western Union and Goeken’s 50% stakes for about $60m in 1986, has failed to develop the system properly: he has filed suit against GTE to be released from his contract, which includes a non-competitive clause, and says he want to file with the Federal Communications Commission to start a rival service; his suit – which GTE will vigorously contest – also claims that GTE removed his right to control the business, and acted in such a manner as to cause many of its brightest technicians to quit.

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