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The Honolulu Advertiser
Posted on: Wednesday, October 31, 2007

Workers praise decision that 'takes away ... uncertainties'

 •  Hawaii air fares may rise after $80M ruling

By Rick Daysog
Advertiser Staff Writer

Employees and retirees at Hawaiian Airlines said $80 million in damages awarded to the company will provide some stability after years of high fuel prices, bankruptcy and an interisland fare war.

"This takes away some of the uncertainties," said Dave Figueira, chairman of the 485-member Hawaiian unit of the machinists union and an 18-year company employee.

"I was pleasantly surprised when I heard the news."

U.S. Bankruptcy Judge Robert Faris yesterday ruled that the Mesa Air Group, the parent of interisland carrier go!, has to pay $80 million to Hawaiian for misusing confidential information to start go! last year.

Employees at Hawaiian said the recent fare war has been taxing on them. They have endured wage cuts and reductions in pensions and other benefits since the local carrier went into bankruptcy in 2003.

The company emerged from Chapter 11 reorganization in 2005.

"This looks favorable," said pilot Joe Mocarski, who has flown for Hawaiian for 22 years.

"But before we can start celebrating, let's wait until the money is in the bank because they're going to appeal."

Retired pilot Grant Stoddard said he believes that the business plan for go! was a "predatory deal" from the start.

Mesa's Chief Executive Officer Jonathan Ornstein introduced $19 and $29 one-way fares to bleed Hawaiian and Aloha Airlines "because Mesa had more than $300 million in cash and could outlast anybody," Stoddard said.

"He miscalculated," said Stoddard, who worked for Hawaiian for 23 years before retiring in January.

"He's arrogant and he deserves it."

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.