Regionals Update: Mesa settles with Hawaiian

 - June 9, 2008, 7:15 AM

Mesa Air Group has dropped its appeal of an $80 million award issued to Hawaiian Airlines and agreed to pay a $52.5 million settlement for using confidential information it obtained during Hawaiian’s 2004 bankruptcy proceedings to launch inter-island subsidiary Go! Last October the bankruptcy court ordered Mesa to pay Hawaiian post-judgment interest and its cost of litigation and lawyer fees. The following month Mesa filed a notice of appeal and the judge ordered it to post a $90 million bond as security, pending the outcome of the appeal. The case has seen Mesa accused of posing as investors to gain access to Hawaiian’s financial records and the eventual firing of former Mesa CFO Peter Murnane after the court found he deleted evidence that might have proved Mesa acted improperly.