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Mesa to rebrand go! as Aloha Airlines
The Phoenix-based carrier settles its lawsuit with Yucaipa
POSTED: 12:51 p.m. HST, Nov 28, 2008
Aloha Airlines appears to be making a comeback.
In a blockbuster move that is likely to send ripples through the local airline industry, Mesa Air Group said today it has settled its lawsuit with Yucaipa Cos., Aloha’s former controlling shareholder, and will rebrand go! as Aloha.
The acquisition of Aloha’s name is contingent upon an auction and hearing next week in federal Bankruptcy Court in which Yucaipa is the leading bidder for Aloha’s intellectual property rights.
In addition to acquiring the Aloha name, Mesa agreed to pay Yucaipa $2 million, issue Yucaipa 10 percent of Mesa’s common stock and provide certain Hawaiian interisland travel benefits to former Aloha employee.
In June, Bankruptcy Judge Lloyd King approved Yucaipa’s offer to buy Aloha’s stake in a lawsuit against Mesa for a $10 million credit bid, effectively reducing the amount that Aloha owed Yucaipa.
The 2007 lawsuit accused Phoenix-based Mesa of misusing Aloha’s confidential information that Mesa obtained as a potential investor during Aloha’s bankruptcy, and also accused Mesa of predatory pricing designed to run Aloha out of business.
Aloha’s eventually filed for bankruptcy on March 20 of this year and shut down completely 11 days later.
“We are extremely pleased to resolve all claims put forward in this litigation and look forward to rebranding service under the Aloha name in the near future,” Mesa Chairman and Chief Executive Jonathan Ornstein said.
Earlier this year, Mesa paid Hawaiian Airlines $52.5 million to settle a lawsuit brought by Hawaiian that alleged Mesa had misused confidential Hawaiian information to enter the Hawaii market in June 2006.
Aloha Airlines appears to be making a comeback.
In a blockbuster move that is likely to send ripples through the local airline industry, Mesa Air Group said today it has settled its lawsuit with Yucaipa Cos., Aloha’s former controlling shareholder, and will rebrand go! as Aloha.
The acquisition of Aloha’s name is contingent upon an auction and hearing next week in federal Bankruptcy Court in which Yucaipa is the leading bidder for Aloha’s intellectual property rights.
In addition to acquiring the Aloha name, Mesa agreed to pay Yucaipa $2 million, issue Yucaipa 10 percent of Mesa’s common stock and provide certain Hawaiian interisland travel benefits to former Aloha employee.
In June, Bankruptcy Judge Lloyd King approved Yucaipa’s offer to buy Aloha’s stake in a lawsuit against Mesa for a $10 million credit bid, effectively reducing the amount that Aloha owed Yucaipa.
The 2007 lawsuit accused Phoenix-based Mesa of misusing Aloha’s confidential information that Mesa obtained as a potential investor during Aloha’s bankruptcy, and also accused Mesa of predatory pricing designed to run Aloha out of business.
Aloha’s eventually filed for bankruptcy on March 20 of this year and shut down completely 11 days later.
“We are extremely pleased to resolve all claims put forward in this litigation and look forward to rebranding service under the Aloha name in the near future,” Mesa Chairman and Chief Executive Jonathan Ornstein said.
Earlier this year, Mesa paid Hawaiian Airlines $52.5 million to settle a lawsuit brought by Hawaiian that alleged Mesa had misused confidential Hawaiian information to enter the Hawaii market in June 2006.
Today’s Edition
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