Mesa/ Go! has the cash to pay bond while appealing

The parent of go! airline will put up $90 million of its own cash for a bond so it can appeal a ruling that it misused confidential information.

Jonathan Ornstein, Mesa Air Group’s chief executive officer, said the bond won’t affect Mesa’s operations nor will it impact go!’s business since Mesa has $200 million to $220 million in cash.

"It’s clearly a big issue. We will get it back," Ornstein said.

Mesa is appealing U.S. Bankruptcy Judge Robert Faris’ decision last month to award $80 million to Hawaiian Airlines for using confidential information to launch go! last year.

The Phoenix-based company also is asking for a new trial on the grounds that Faris abused his discretion by not allowing Mesa to introduce evidence that would have helped its case.

As part of the appeal process, Faris ruled yesterday that Mesa must post a $90 million bond.

The amount covers the judgment, $4.7 million in legal fees, $3.4 million for a year’s worth of interest and $1.9 million for additional costs.

In its legal papers, Hawaiian asked for a bond of $98 million, which included $10 million in interest to cover a three-year period that an appeal could take.

Hawaiian argued that it needed the extra protection due to Mesa’s dwindling cash position. Since launching go! in June 2006, Mesa’s cash holdings have fallen from about $345 million to about $200 million.

Hawaiian attorney Sid Levinson also cited Mesa’s sagging stock price, which fell to its lowest in more than 4 1/2 years yesterday. Mesa shares dropped 9 cents to close at $3.90 on the Nasdaq market.

Evan Jones, an attorney for Mesa, called Hawaiian’s request excessive.

"Even the numbers the court has (calculated) provide more cushion than Hawaiian is entitled to," Jones said’

1 comment November 21st, 2007

Hawaii SuperFerry gets OK to sail Dec. 1

SuperFerry back on track

The  Hawaii SuperFerry will resume service between Oahu and Maui on Dec. 1 for an inaugural $29 one-way fare, the company said Friday.

The $29 passenger fare will be good for voyages from Dec. 1 through Dec. 20. The fare will rise to $39 on Dec. 21 through March 12, 2008. Passenger vehicle fares will be $55 one way.

On Wednesday, Circuit Judge Joseph Cardoza lifted the injunction that has kept the high-speed interisland ferry Alakai from sailing to Maui since the end of August.

"We appreciate the support we’ve received from everyone who shares the vision of uniting our islands and families by sea," said President and CEO, John Garibaldi. "Hawaii Superferry and its more than 300 employees look forward to a new beginning as we start our voyages between Oahu and Maui, a new choice for interisland travel. "

The company has not announced a schedule for Kauai.

"We have already begun community outreach efforts on Kauai," Garibaldi said. "We will make our decision about when we commence our Kauai service once that process is completed."

The Hawaii Legislature passed a law during a special session last month that enables the ferry to sail while an environmental study is conducted. After signing the bill into law, Gov. Linda Lingle asked the judge to lift the injunction.

1 comment November 21st, 2007