A Hawaiian federal bankruptcy court ruled Mesa Air Group did destroy evidence needed in the its lawsuit charging Mesa, in 2006, used confidential information gained in the due diligence process of a 2004 investment proposal by Mesa in bankrupt Hawaiian and Aloha airlines and based its competitive strategy for launching its own inter-island service, go!, on that information. The lawsuit against Mesa was set to begin at press time.
Prompted by and investigation, CFO Peter Murnane was placed on 90 days administrative leave form Mesa Air Group. Until the company investigation is complete, William Hoke, Vice President of Finance will continue to be responsible for the financial and accounting functions including Murnane’s duties. Hawaiian seeks $173 million in damages and an injunction against go! operations for a year.
Mesa Air Group CEO Jonathan Ornstein testified that go! was started to make money not to drive the two indigenous carriers out. However, e-mails earlier showed Mesa said that go! would not be viable with three competing carriers. Ornstein also cited a ruling last October in which the bankruptcy court did find Mesa was, at one time, trying to eliminate both carriers. Saying the sentiments in a memo reflected Murnane’s own opinion, not that of Mesa, Ornstein said Murnane stated, "We definitely don't want to wait for them to die, rather we should be the ones who give them the last push."
Even so, Ornstein also testified he was doubtful of Hawaiian allegations that Mesa CFO Peter Murnane destroyed computer files, which prompted the placement of the CFO on administrative. Mesa admitted Murnane used special software to delete files sought by Hawaiian but it was done in an attempt to cover up evidence of his habit of using company computers to view pornography. He used the software to permanently delete traces on the hard drives of three different computers, including his own. However, it denied any complicity in the data deletion, saying Murnane was solely responsible. Even so, Hawaiian was not buying the explanation and Attorney Sidney Levinson called it "a transparent effort to distract the court's attention and undermine the credibility of one of Mesa's most senior officers." Despite the finding, the documents exist and have been turned over to Hawaiian, according to Mesa’s attorney, who seemed to be saying the data deletion was a moot point.
The Hawaiian press reported that computer forensics expert Jefford Englander found evidence of repeated deletions that could not be identified as well as manipulation of the computer’s clock including the modification of files before they were even created. "(Murnane) was successful in his attempt to eradicate data from the hard drive and less successful in concealing his activities with the clock operations," Englander said, who had not looked for deletions of pornographic sites. However, evidence of porn viewing was supplied by Mesa’s own vice president for legal affairs who, on one Saturday morning office visit, caught Murnane at it.
Reporters said Hawaiian’s attorney repeatedly accused Mesa of being less than truthful, adding the more they dig into the airline’s practices, the more they find.