Hawaiian Airlines settles Mesa confidential information misuse lawsuit

By Caroline Salls

Pittsburgh, April 30 - Hawaiian Airlines has settled its lawsuit with Mesa Air Group, Inc. that was filed in connection with Mesa's alleged misuse of confidential information obtained in connection with Hawaiian's Chapter 11 plan of reorganization, according to a Hawaiian Airlines news release.

Under the settlement agreement, Hawaiian Airlines will receive a $52.5 million cash payment, and Mesa will withdraw its appeal of the $80 million judgment awarded against Mesa by the bankruptcy court in October 2007.

Hawaiian said the cash payment is required to be made within two business days of approval of a stipulation by the bankruptcy court that will follow dismissal of the appeals.

"This settlement is the last chapter in the legal dispute over Mesa's misuse of Hawaiian's confidential information," Hawaiian Airlines president and chief executive officer Mark Dunkerley said in the release.

"We were delighted with the award of damages and this settlement."

On Oct. 30, 2007, the bankruptcy court awarded Hawaiian $80 million for damages and ordered Mesa to pay post-judgment interest and its cost of litigation and reasonable attorney's fees.

In November, Mesa appealed the ruling and was required to post a $90 million bond as security for the judgment, post judgment interest, and attorney's fees, pending the outcome of the appeal.

According to a Mesa news release, the lawsuit was related to a long-running lawsuit over Mesa's inter-island flight services operated under the go! brand name.

Mesa said it will receive $37.5 million from the previously posted bond under the settlement.

Hawaiian's $52.5 million cash settlement payment represents the remaining collateral of the bond, according to the Mesa release.

Hawaiian, a Honolulu-based air carrier, emerged from bankruptcy in the U.S. Bankruptcy Court for the District of Hawaii in June 2005.

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