Thu, Nov 01, 2007
Judge Rules Carrier Used Confidential Information
Mesa Air Group's new
low-cost carrier will cost them some big bucks. A US Bankruptcy
Court judge ruled Tuesday Mesa illegally used confidential
information obtained from Hawaiian Airlines to launch its new go!
interisland airline... and ordered Mesa to cough up $80
million.
The Associated Press reports Judge Robert J. Faris ordered the
fine to compensate for damages Hawaiian Airlines has incurred since
go! entered the Hawaii market.
Faris determined Mesa used information it obtained while a
bankrupt Hawaiian Airlines courted Mesa as a possible investor --
including profitability figures for local and Hawaii-US mainland
routes, and passenger profiles -- to turn around and launch its own
airline. The judge said Mesa breached a confidentiality agreement
when it failed to return the information to Hawaiian, or destroy
it.
Faris rejected Hawaiian's request to ban Mesa from selling
interisland tickets for one year, however, and he refused to order
Mesa to compensate Hawaiian for future damages. The airline had
sought such damages to compensate for what Hawaiian believes are
the unnaturally low fares that have resulted since go! launched --
to an average of $40.
Still, Hawaiian president and CEO Mark Dunkerely called the
ruling "a triumph for fair competition and ethics over dishonesty
and illegal behavior."
Mesa has maintained it studied the Hawaiian market for years,
and it launched go! because Hawaiian Airlines and Aloha Airlines
were charging too much.
Faris said it's inevitable all three airlines will soon have to
raise fares, due to financial losses despite an increase in
passenger traffic. Hawaiian and Aloha lost a combined $82.1 million
for 2006, according to the AP.
More News
Hazardous Weather Information Summary of significant meteorological information (SIGMET/WS), convective significant meteorological information (convective SIGMET/WST), urgent pilot>[...]
Aero Linx: The T-6 Racing Association The T-6 Racing Association is all about T-6‘s and racing. Our mission is to bring great racing to our fans in Reno and other venues wher>[...]
Also: Electra Aero, AMO-CBP v Smugglers, Naval King Airs, Boeing Deal To the surprise of everyone involved, Waco Kitchen shut down both airport operations with little warning and h>[...]
Also: WACO Kitchen Bails, French SportPlane Mfr to FL, Dynon-Advance Flight Systems, Innovation Preview Bobby Bailey, a bit of a fixture in sport aviation circles for his work with>[...]
Also: Virgin Galactic, B-29 Doc to Allentown, Erickson Fire-Fighters Bought, FAA Reauthorization After dealing with a big letdown after the unexpected decision by Skyreach to disco>[...]