Mesa Settles Aloha Suit

In what Hawaiians will likely call a twisted settlement, bankrupt Aloha may allow the company that drove several nails into its coffin to use its name, according to a deal cut between go!’s parent company Mesa and Aloha’s majority stakeholder Yucaipa Cos. The deal, was forged to settle the pending lawsuit against Mesa for using proprietary information gained in an investment scheme to launch Aloha’s competitor go!.
Mesa earlier lost a similar suit to Hawaiian Airlines, costing it $58 million. The deal also calls for travel benefits for Aloha’s 3,500 former employees on go! as well as $2 million and 2.7 million Mesa Air Group shares to Yucaipa, giving it 10 percent of Mesa’s outstanding stock. Mesa admitted no wrongdoing. The use of the Aloha name depends on bankruptcy court auction, through which, Yucaipa will purchase the name and license it to Mesa.
"We are extremely pleased to resolve all claims put forward in this litigation and look forward to re-branding service under the Aloha name in the near future," said Jonathan Ornstein, Chairman and Chief Executive Officer of Mesa. "This settlement resolves all claims by Aloha Airlines related to Mesa's entry into the Hawaiian inter-island market and permits us to focus solely on our core competency of providing the best service, convenient schedules and low-fare pricing to our customers. We intend to carry on Aloha's proud tradition, maintain Mesa's status as Hawaii's low cost air carrier and look forward to future growth opportunities made possible by this settlement."