Another hit for Mesa

[hula-flyguy]

From Honolulu Advertiser.....


Mesa must pay $3.9 million more to Hawaiian Airlines


Mesa Air Group Inc. must pay $3.9 million in legal fees and costs in addition to $80 million in damages awarded to rival Hawaiian Airlines Inc. over misuse of the carrier's confidential information, a judge ruled.

Mesa is the parent of interisland carrier go!.

U.S. Bankruptcy Judge Robert Faris ruled that Hawaiian officials were entitled to recoup more than $3.6 million in fees and more than $275,000 in costs from Mesa in connection with claims that Mesa used deceptive practices to gain access to Hawaiian's passenger and pricing data while the Honolulu-based airline was under bankruptcy protection. Faris awarded Hawaiian $80 million in damages in October.

"My independent review of billing records convinces me" that Hawaiian Air's fee request was reasonable, Faris said in an 11-page ruling Tuesday.

Brian Gilman, Mesa's general counsel, wasn't available for comment on Faris' ruling.

Hawaiian's executives accused Mesa officials of posing as investors to gain access to confidential information they could use to set up go!, an island-hopping competitor. Phoenix-based Mesa breached a confidentiality agreement it signed to view the data, Hawaiian executives contend in the suit

 

[YVINTERN]

unbelievable...Mesa BOD needs to sack JO and cut their losses yet the Mesa CEO is still around with his balls intact.

 

[SegmentKing]

.. but again, although I like him, most people don't really like the successor if JO leaves: Mike Lotz

 

[Hey.. Chill Out]

YV.... Why did you delete those files? He told you he hides his porn on the E: drive.

Now he's going to replace you with a chimp

 

[SegmentKing]

whats scary is I actually worked with Peter Murnane and it was amazing how many times I had to keep reinstalling software on his laptops.... I didn't work in IT, but there were only a few of us "non executives" allowed in the dungeon of the skies.. err 11th floor at corporate...

Peter was always a good guy, but he reminded me of Bill Lumberg. He'd walk up to my desk and always go "um, yeah, can you do it like this, um yeah... because"

In total defense of Mesa, NONE OF US saw the Hawaiian or Aloha data, and my department was the most scrutinized in the lawsuit.

 

[700UW]

I wonder if Mesa will file Chapter 11 to get out of paying?

 

[700UW]

They probably can, US filed to get out of paying the IAM $15 Million over the Airbus Arbitration.

Enron filed and so did Adelphia to get out of paying so I dont see why Mesa cant.

 

[SegmentKing]

they had to throw $90 million into a secured escrow account.

 

[YVINTERN]

They probably can, US filed to get out of paying the IAM $15 Million over the Airbus Arbitration.

Enron filed and so did Adelphia to get out of paying so I dont see why Mesa cant.

Correct me if I'm wrong Mr. Union Man, wasn't the bankruptcy laws changed to prevent that kind of abuse? That's why NW/DL filed for CH11 protection right before a deadline?

 

[700UW]

You are now corrected:

New Rules for Corporate Bankruptcy

Although the act's main goal was to reform personal bankruptcy rules, it did change some rules on corporate filings. But Skeel says he is not convinced the changes were needed. The corporate-bankruptcy system has long been very effective, he suggests.

Previously, a company that filed for bankruptcy protection could remain under the control of its managers -- the "debtor in possession" -- indefinitely. Under the new rules, the company will have the exclusive right to plan the reorganization for only 180 to 210 days. After that, creditors will be able to propose plans of their own. Skeel says critics are rightly concerned that in some cases certain creditors will stall a company's reorganization so that they can propose one that favors them over other creditors.

Another provision will make it tougher for bankrupt companies to wriggle free of leases. This could make reorganization more difficult for retailers, though Skeel doesn't think this will be as big a problem as many of the law's critics do.

The act also makes it harder for companies in bankruptcy to pay bonuses to managers. That was mainly intended to prevent corporate crooks from continuing to plunder their companies in bankruptcy.

But Skeel argues these cases are rare. Most corporate bankruptcies do not involve fraud, and in those that do the crooks are usually gone by the time bankruptcy is filed. Managers who take companies out of bankruptcy have long been compensated primarily with performance-based bonuses, and that system has worked well, Skeel says. After the law takes effect, it will be important to see whether talented managers will stay through reorganizations without bonuses. "It seems pretty clear that when Congress put this provision in, it was not thinking about this."