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Hawaiian Air wins ruling in suit over startup of go!
A decision on Hawaiian's $173M damage request will come after trial
David Segal
[email protected]
A federal bankruptcy judge ruled today that Mesa Air Group concealed and destroyed evidence that could have been useful to Hawaiian Airlines in its lawsuit over the Phoenix-based carrier’s decision to start up the interisland airline go!.
Bankruptcy Judge Robert Faris ruled that Mesa did misuse information it got from Hawaiian while Mesa was a potential investor during the local airline’s bankruptcy, and that Mesa’s misuse was a “substantial factor†in its decision to come into the Hawaii market.
Hawaiian is seeking $173 million in damages plus a one-year injunction against ticket sales by go!, whose arrival in the interisland market touched off a fare war that has driven ticket prices as low as $1 and left Hawaiian and competitor Aloha Airlines posting millions of dollars in losses.
Faris said he will decide on damages after a trial that has been rescheduled to start tomorrow.
Before today's ruling, Mesa attorney Maxwell Blecher had acknowledged that Mesa Chief Financial Officer Peter Murnane concealed and deleted information sought by Hawaiian, but said Hawaiian hasn’t proved yet that Mesa used confidential information in its decision to enter the Hawaii market.
Hawaiian attorney Sidney Levinson said the destruction of evidence has hurt Hawaiian’s case in the trial and a default judgment is warranted to sent a message “to all the Mesas of the world.â€
The $173 million was the amount of damages determined to have been suffered by Hawaiian because of Mesa’s entry into the interisland market, according to an analysis by aviation consultant Samuel Engel of Simat, Helliesen & Eichner Inc.
A decision on Hawaiian's $173M damage request will come after trial
David Segal
[email protected]
A federal bankruptcy judge ruled today that Mesa Air Group concealed and destroyed evidence that could have been useful to Hawaiian Airlines in its lawsuit over the Phoenix-based carrier’s decision to start up the interisland airline go!.
Bankruptcy Judge Robert Faris ruled that Mesa did misuse information it got from Hawaiian while Mesa was a potential investor during the local airline’s bankruptcy, and that Mesa’s misuse was a “substantial factor†in its decision to come into the Hawaii market.
Hawaiian is seeking $173 million in damages plus a one-year injunction against ticket sales by go!, whose arrival in the interisland market touched off a fare war that has driven ticket prices as low as $1 and left Hawaiian and competitor Aloha Airlines posting millions of dollars in losses.
Faris said he will decide on damages after a trial that has been rescheduled to start tomorrow.
Before today's ruling, Mesa attorney Maxwell Blecher had acknowledged that Mesa Chief Financial Officer Peter Murnane concealed and deleted information sought by Hawaiian, but said Hawaiian hasn’t proved yet that Mesa used confidential information in its decision to enter the Hawaii market.
Hawaiian attorney Sidney Levinson said the destruction of evidence has hurt Hawaiian’s case in the trial and a default judgment is warranted to sent a message “to all the Mesas of the world.â€
The $173 million was the amount of damages determined to have been suffered by Hawaiian because of Mesa’s entry into the interisland market, according to an analysis by aviation consultant Samuel Engel of Simat, Helliesen & Eichner Inc.