Mesa to fork over $80 million!!!
10-31-2007 | 10:36 AM
#41
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From: 170 babysitter
There was a good article in the Money section yesterday (USA Today) about Colombian drug trafficking and violence, and concerning corporate sponsored militant groups to keep Colombian labor unions under control so that sweat shops could continue to run. Coca cola was one being investigated and protested due to allegations that they sponsored guerrilla groups to assasinate and terrorize Colombian labor union officials, so they could keep their iron fist around their operations in Colombia. In fact, many USA colleges have now switched from serving Coke because of the uproar it is causing.
It is true, not much is made in the USA anymore. It's just too expensive when a corporation can move their operations overseas for sweatshop wages.
It is true, not much is made in the USA anymore. It's just too expensive when a corporation can move their operations overseas for sweatshop wages.
10-31-2007 | 11:08 AM
#42
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From: EMB120 CA
http://www.pbs.org/frontlineworld/fellows/colombia0106/
10-31-2007 | 11:23 AM
#43
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From: 170 babysitter
Probably to keep wages low. The following link provides a good read about it, if you have time and are interested:
http://www.pbs.org/frontlineworld/fellows/colombia0106/
http://www.pbs.org/frontlineworld/fellows/colombia0106/
10-31-2007 | 12:17 PM
#44
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From: 1st year pay for the 3rd time
Global market and our tax code
I realize that most of American companies are trying to capture the "global market". But the real issue here is the tax code. Back in the 80's corporations paid up to 30% of the tax bill. But the morons in Congress (both sides of the ailse) keep reworking the tax code and now it seems every company out there is trying to list somewhere offshore. Carnival Cruise Lines comes to mind of an American company that is registered in the Bahamas to they can dodge the tax man. If you really want to bring these jobs back, start really fixing the tax code and we can draw not only our own companies back, but foreign companies as well.
Just my .02
Just my .02
10-31-2007 | 12:17 PM
#45
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From: 787 FO
Can anyone say Bye Bye Johnny O 
SAN FRANCISCO (MarketWatch) -- Hawaiian Holdings Inc. shares jumped as much as 21% on Wednesday after its flagship carrier won a court ruling against rival Mesa Air Group, who said it will seek to overturn the decision.
Honolulu-based Hawaiian Holdings' (HA:hawaiian holdings inc com
News, chart, profile, more
Last: 5.10+0.71+16.17%
Sponsored by:
<img class="pixelTracking" border="0" height="1" width="1">HA 5.10, +0.71, +16.2%) shares reached as high as $5.30 and were last up nearly 18% to $5.17 a share, sidestepping a downturn in airline stocks.
Late Tuesday, the company's carrier Hawaiian Airlines said it won a ruling in a lawsuit against Mesa Air Group (MESA:MESA 4.67, -0.43, -8.4%) and was awarded $80 million of damages plus costs. Hawaiian had been seeking $173 million in damages.
<img class="pixelTracking" border="0" height="1" width="1">
SAN FRANCISCO (MarketWatch) -- Hawaiian Holdings Inc. shares jumped as much as 21% on Wednesday after its flagship carrier won a court ruling against rival Mesa Air Group, who said it will seek to overturn the decision.
Honolulu-based Hawaiian Holdings' (HA:hawaiian holdings inc com
News, chart, profile, more
Last: 5.10+0.71+16.17%
Sponsored by:
<img class="pixelTracking" border="0" height="1" width="1">HA 5.10, +0.71, +16.2%) shares reached as high as $5.30 and were last up nearly 18% to $5.17 a share, sidestepping a downturn in airline stocks.
Late Tuesday, the company's carrier Hawaiian Airlines said it won a ruling in a lawsuit against Mesa Air Group (MESA:MESA 4.67, -0.43, -8.4%) and was awarded $80 million of damages plus costs. Hawaiian had been seeking $173 million in damages.
<img class="pixelTracking" border="0" height="1" width="1">
10-31-2007 | 01:44 PM
#46
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From: A330 Captain
They had about 100 million in a warchest of which a portion was slated to cover the losses at operating below cost in Hawaii. It'll be interesting to see what happens, Mesa won't have the cash to cover those $20 seats anymore. Will their ticket prices rise? The RJ costs more per seat mile on those short hops than Hawaiian's 717s, that is a fact. So with Mesa's ticket price the same as Hawaiian and Aloha will customers continue to buy GO tickets? Most likely not. Mesa will probably go! the way that Mahalo, Mid-Pac and Discovery went. Stay tuned.
10-31-2007 | 02:24 PM
#47
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From: SWA F/O
11-01-2007 | 09:44 AM
#48
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From: Airbus
Taken from http://www.planebuzz.com/ half way down the page:
Hawaiian Airlines/Mesa Air Group Decision: Our Second Take
Just a couple of comments about the decision that was handed down late yesterday by U.S. Bankruptcy Judge Robert Faris in the case of Hawaiian Airlines versus Mesa Air Group.
Last night -- on first blush, I thought Judge Faris had essentially split the difference in terms of what the airline had requested with his award of $80 million.
Not right. Not at all.
In reading through his decision more carefully today, it is clear that Judge Faris gave Hawaiian every single penny it asked for. According to Samuel Engel's testimony from SH&E during the trial, the airline was due $71 million in damages for the period up until August. Tack on additional costs for the months of September and most of October, and that is where the $80 million figure comes in.
In the trial, Hawaiian was asking for a total of $173 million, but the rest of that amount was based on "speculation" for future losses. In other words, it was an amount based on future go! operations.
So, in other words, Hawaiian Airlines is now free to sue Mesa again -- for additional damages -- for an additional period of time.
Today, Hawaiian said that it was now looking at its options in that regard.
Remember also that at the end of last quarter, Mesa had $250 million in cash in the bank. Based on that total, the judgment represents almost 1/3 of the airline's available cash. To put it another way, if American Airlines were to face a similar damages judgment, the total would be comparable to a $1.7 billion award.
Not chicken feed. No matter how you look at it.
So -- essentially Judge Faris not only delivered a ruling that was scathing of Mesa Air Group and its management, but he gave Hawaiian Airlines every penny it asked for.
But that was not the only "cost" to Mesa.
Remember that Aloha Airlines has its own anti-trust case coming up against Mesa next spring. In regards to that case, I think it would be fair to say that this trial succeeded in getting a great deal of information into the public record that the attorneys for Aloha can now use.
Just one additional tidbit. Aloha's case is an anti-trust case. That means that any damages that could be potentially awarded to Aloha would be "trebled" or tripled - in plain English.
As for the market reaction, shares of Mesa fell 9% today, closing at $4.65, while shares of Hawaiian skyrocketed -- both on the Mesa news and strong third quarter numbers. Shares here closed up 17% to $5.15.
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