honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser

Updated at 3:18 p.m., Wednesday, October 31, 2007

Mesa to appeal; CEO says $80M judgment 'went too far'

Advertiser Staff

Mesa Air Group Inc., the parent company of interisland carrier go!, said it will seek to overturn a U.S. Bankrutpcy Court ruling that ordered it to pay an $80 million judgment to Hawaiian Airlines.

The air carrier, reacting to the ruling by Judge Robert Faris yesterday, had initially said the likelihood of filing an appeal was "very high."

Today Mesa said it will appeal the ruling and anticipates having to post a bond or letter of credit.

"We are obviously very disappointed with this judgment. The order is not a result of a jury finding, but from a Bankruptcy Judge who entered sanctions against Mesa concerning evidentiary issues. We believe these sanctions went too far and that an impartial appellate court will find the sanctions and this judgment should be set aside," said Jonathan Ornstein, chairman and chief executive of Mesa Airlines, in a news release.

"As we have pointed out from the inception of this case, Hawaiian's true motive in filing suit was to stifle competition and maintain the high fares and reduced capacity fostered by the inter-island duopoly led by Hawaiian Airlines. As the only low cost airline operating in the Hawaii inter-island market we are committed to providing affordable travel to the Neighbor Islands."

Mesa said it remains committed to providing a high-quality, low-cost interisland air service.

Hawaiian sued Mesa saying the Phoenix-based company had used its confidential financial information from a bankruptcy proceeding when it was planning go!.