Mesa Air settles suit with Hawaiian Airlines - East Valley Tribune: News

Mesa Air settles suit with Hawaiian Airlines

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Posted: Wednesday, April 30, 2008 9:06 am | Updated: 9:51 pm, Fri Oct 7, 2011.

Phoenix-based Mesa Air Group said Wednesday it has settled its $90 million lawsuit with Hawaiian Airlines, leaving the local carrier a little better off than it fared with the original judgment.

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Of the $90 million bond posted by Mesa Air, which plunged the company into the red, Mesa Air gets back $37.5 million and Hawaiian walks away with $52.5million.

Mesa Air was accused by the Honolulu-based competitor of using proprietary information obtained during Hawaiian's 2004 stint in bankruptcy to stifle competition when Mesa Air launched its new inter-island service Go. And Mesa Air's chief financial officer was accused of later destroying evidence of the alleged misdeed.

The court sided with Hawaiian and awarded the offended airline $80 million plus court costs and attorney fees.

Mesa Air fired its CFO and vowed to appeal the judgment. At the time Mesa Air's CEO Jonathan Ornstein labeled the awarded amount "extraordinary and unprecedented."

Under the terms of the settlement announced Wednesday, Mesa Air said it does not admit wrongdoing, and the agreement doesn't affect the ongoing Go operation. "This settlement is the last chapter in the legal dispute over Mesa's misuse of Hawaiian's confidential information," said Hawaiian CEO Mark Dunkerley in a statement. "We were delighted with the award of damages and this settlement."

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