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-   -   Mesa denied Aloha! (https://www.airlinepilotforums.com/regional/40085-mesa-denied-aloha.html)

ToiletDuck 05-15-2009 06:26 PM

Mesa denied Aloha!
 
Go! can't use Aloha Airlines brand - Pacific Business News (Honolulu):


A federal judge ruled Thursday that Hawaii interisland carrier go! cannot rebrand itself as Aloha Airlines.

In his ruling, U.S. Bankruptcy Judge Lloyd King wrote that Yucaipa Co. of California, the former majority owner of Aloha Airlines, cannot bid for rights to Aloha’s intellectual property.

Yucaipa had arranged to license those rights to go!’s parent company, Phoenix-based Mesa Air Group (Nasdaq: MESA), for $6 million over 10 years.

But King blamed Mesa for forcing Aloha out of business on March 31, 2008, and said it would be unreasonable for Mesa to now take over the Aloha brand.

“Mesa succeeded in inflicting great harm, not only upon Aloha corporate entities but also upon thousands of Aloha employees and families,” King wrote. “It is difficult to imagine a court overlooking what Mesa has done and putting its stamp of approval on Mesa’s subsidiary, go!, becoming Aloha.”

Go! entered the Hawaii market in June 2006, instigating a fierce fare war between go!, Aloha and Hawaiian Airlines (owned by Hawaiian Holdings, (Nasdaq: HA), the state’s top carrier.

Paul Skellon, go!’s top executive in Hawaii, declined to comment.

PAN PAN PAN 05-15-2009 06:33 PM

Was wondering what ever happened with this.

flycrj200 05-15-2009 06:39 PM

I did not think any judge in Hawaii would ever allow this to happen.

Thank You Judge

Boomer 05-15-2009 07:28 PM


Originally Posted by flycrj200 (Post 611646)
I did not think any judge in Hawaii would every allow this to happen.

Letting Go! change its name to Aloha - That would be like letting Hamlet's Uncle marry Hamlet's mom.

:confused:

avi8tor4life 05-15-2009 07:48 PM

Finally a smart ethical judge.

johnso29 05-17-2009 05:22 PM

Thank Goodness. What an insult to Aloha that would have been.

rjjunkie 05-17-2009 05:36 PM

sure...
 

Originally Posted by avi8tor4life (Post 611693)
Finally a smart ethical judge.

Yeah obviously Justice is blind.. hmm ill take it you majored in aviation management?... Toiletduck is wasting his time trying to plug more holes into the leaking sieve called "GO" Inter-island hawaii. :cool: keep on trying ... but honestly i think JO's in Phoenix just north of the airport, why don't you try him there Toiletduck? 4,775 posts about mesa ....

Sniper 05-18-2009 07:11 AM


"Mesa succeeded in inflicting great harm, not only upon Aloha corporate entities but also upon thousands of Aloha employees and families,” King wrote. “It is difficult to imagine a court overlooking what Mesa has done and putting its stamp of approval on Mesa’s subsidiary, go!, becoming Aloha."
That is one of the worst legal arguments I've ever heard.

Aloha declared bankruptcy. As such, Aloha owes $ to creditors. One of Aloha's assets is the brand. If Yucaipa legally acquired the brand (I thought this was @ issue, and that Yucaipa hadn't allowed other bidders), then it is theirs to do with as they wish. If they wish to license it to another airline, then that is their legal right, as the owner of the brand.

Justice King should have recused himself from the case, as his personal opinions on the case prevent him from judging the case objectively.

rjjunkie 05-18-2009 10:27 AM


Originally Posted by Sniper (Post 612771)
That is one of the worst legal arguments I've ever heard.

Aloha declared bankruptcy. As such, Aloha owes $ to creditors. One of Aloha's assets is the brand. If Yucaipa legally acquired the brand (I thought this was @ issue, and that Yucaipa hadn't allowed other bidders), then it is theirs to do with as they wish. If they wish to license it to another airline, then that is their legal right, as the owner of the brand.

Justice King should have recused himself from the case, as his personal opinions on the case prevent him from judging the case objectively.


Thankyou Sniper... finally someone who gets the idea behind justice and how our personal opinions should not weigh at all in any case brought before the courts... you speak LEGalese very nice ? Oh and hey Toiletduck i think there gonna start blowing up the fine print for people like you. "Size 12 font" and "times new roman" just for your undiscerning eyes. oooh oh opph oh MESA's still there ? ruh roh more posts i guess...

Luv2Rotate 05-18-2009 11:10 AM

Speaking of Mesa... When is the Delta verdict gonna happen? :rolleyes:

DeltaPaySoon 05-18-2009 11:28 AM


Originally Posted by Sniper (Post 612771)
That is one of the worst legal arguments I've ever heard.

Aloha declared bankruptcy. As such, Aloha owes $ to creditors. One of Aloha's assets is the brand. If Yucaipa legally acquired the brand (I thought this was @ issue, and that Yucaipa hadn't allowed other bidders), then it is theirs to do with as they wish. If they wish to license it to another airline, then that is their legal right, as the owner of the brand.

Justice King should have recused himself from the case, as his personal opinions on the case prevent him from judging the case objectively.

What you're seeing IS the true legal system. While there are black and white laws and bylaws, the purpose of judges are to interpret, and deliver, rulings based on rational decisions for the betterment of the whole where black and white doesn't exist (the majority of the decision making process in the judiciary department)

What is PERCEIVED as rational depends on what the desired outcome is to the reader / individual. I've seen rulings such as this many, many times where a judge states "opinions" on harm rendered to businesses rather than rulings where legal code exists. That's their job and their opinion, unfortunate or not, is the only one that matters. Harm on investors / owners / employees is a very, very touchy subject in the legal arena and this decision wasn't as biased as it appears. The overwhelming majority of decisions where it appears individuals were "railroaded", and harm was done by one company, the intruding company will NOT then be rewarded if a legal battle, such as this, needed to be heard by the court.

I know the thought that, "Well, they bought the assets and that includes the brand" is likely with some but that is not a true statement as SEC laws prohibit this type of circumvention of a true merger STRICTLY because of how JO wanted it to happen. He wanted to spare the expense of a merger (payout to investors of Aloha) and all the legal fees associated with the process and go straight to what benefits him. If the Aloha name was so financially important, why not buy Aloha Airlines and merge the operations? JO tried a shrewed, and what he thought was brilliant, move to gain a brand and saving lots of money and the SEC prevents his tactic for the reasons specified. I don't know if he just didn't know this or thought it was just another infamous "recommendation" vs. one with legal protection.

It has always been my opinion that getting to use the Aloha name would be, in essence, corporate theft and would not be allowed because of legal ramifications, ie. the "harm" discussed in the ruling, not the judges personal "feeling". There are laws and processes in place with the SEC for mergers where one company wants to gain a benefit by utilizing a logo or brand. Directly competing with a company in hopes to force liquidation AND THEN making a side agreemement for the betterment of ONE individual (the biggest investor in the former Aloha) was never going to be allowed.

I, sincerely, disagree that another Hawaiian judge would have looked at precedent any differently. The system allows appellate courts, let's see what happens there if JO wants to spend the money.

Boomer 05-18-2009 07:59 PM


Originally Posted by Boomer (Post 611678)
Letting Go! change its name to Aloha - That would be like letting Hamlet's Uncle marry Hamlet's mom.

:confused:

Letting Go! change its name to Aloha - That would be like letting OJ raise Nicole's kids.

Boomer 05-18-2009 08:00 PM

Letting Go! change its name to Aloha - That would be like letting Lee Harvey Oswald be the president.

Justdoinmyjob 05-19-2009 05:53 AM


Originally Posted by Boomer (Post 613156)
Letting Go! change its name to Aloha - That would be like letting OJ raise Nicole's kids.

Except for the fact that he is the father already.

newKnow 05-19-2009 06:11 AM


Originally Posted by Sniper (Post 612771)
That is one of the worst legal arguments I've ever heard.

Aloha declared bankruptcy. As such, Aloha owes $ to creditors. One of Aloha's assets is the brand. If Yucaipa legally acquired the brand (I thought this was @ issue, and that Yucaipa hadn't allowed other bidders), then it is theirs to do with as they wish. If they wish to license it to another airline, then that is their legal right, as the owner of the brand.

Justice King should have recused himself from the case, as his personal opinions on the case prevent him from judging the case objectively.

Ask any judge or lawyer out there, most of them will tell you, outside of constitutional issues, a reasonable standard is what is used to judge cases. There is very little black and white in the law, but lots of grey.

fxn2fly 05-19-2009 05:46 PM

This is the grey area. I just love King's opinion of Mesa!!


Mesa loses attempt to rename go! as Aloha Airlines | Howzit Howard


From the maui news...

As a further complication, Mesa's past dishonesty in this court will surround any hearing in which its veracity is at issue with an atmosphere of disbelief," King said. "In other words, an evidentiary hearing would serve no purpose."

newKnow 05-19-2009 07:21 PM

Wasn't Mesa fined like $ 1 million out there for doing something illegal? What did they do?

Sniper 05-20-2009 06:22 AM


Originally Posted by fxn2fly (Post 613642)
"As a further complication, Mesa's past dishonesty in this court will surround any hearing in which its veracity is at issue with an atmosphere of disbelief," King said. "In other words, an evidentiary hearing would serve no purpose."

Like I said, not objective. If we apply a 'reasonable standard' to Judge King, would we find him fit to preside over cases involving Mesa?

--
I'm not endorsing the defense that Mesa put up re: Aloha and Hawaiian's insider info, but Mesa is entitled to a objective hearing by the courts, and they are not getting it with Judge King.

--
Quick synopsis of Mesa's past court history in Hawai'i- Both Aloha and Hawaiian in Ch. 11. Mesa Air Group, as a potential investor, gets access to Aloha and Hawaiian's proprietary info on the Hawaiian market. Mesa then is alleged to have used this data to help them enter the Hawaiian inter-island market. Evidence is presented in court that Aloha's and Hawaiian's own internal charts and graphs (formatting and all) were part of a presentation to Mesa's BOD to sell the start-up of "go! Airlines", Mesa's self-branded Hawaiian inter-island carrier. Also, a Mesa laptop computer was erased just prior to the computer being seized by the court. Mesa's defense - the data in the BOD presentation was Mesa's own (the formatting was just coincidence) and 1 rogue member of Mesa management, JO's close friend, was erasing his computer because he had pornography on it, not because he had Hawaiian's and Aloha's internal market data on it and was destroying evidence. Mesa's General Council testified that he had seen this rogue manager viewing pornography on company computers before.

Mesa losses one case, settles another, and the 'rouge' manager is fired, but seen sitting right beside JO soon after during an official signing ceremony between Mesa Air Group and Kungpen Airlines in China.

Mason32 05-20-2009 07:57 AM


Originally Posted by newKnow (Post 613692)
Wasn't Mesa fined like $ 1 million out there for doing something illegal? What did they do?

in short.... bought enough stock in Aloha to have a seat at the table for strategic company planning sessions.... then used the inside information to run Go! in such a fassion that Aloha would eventually fail and go bankrupt.

In really short terms.... Mesa learned what Aloha's real costs were, then Mesa subsidized Go!, selling tickets at below actual cost until Aloha went thumbs up.

A few other issues as well, but the misuse of inside information is what got them fined... but by then it was too late to save Aloha.

So, it was both morally and legally wrong, but it would result in JO getting his way.... and at the time was an affordable means to an end; so, he did it.

newKnow 05-20-2009 09:17 AM


Originally Posted by Mason32 (Post 613865)
in short.... bought enough stock in Aloha to have a seat at the table for strategic company planning sessions.... then used the inside information to run Go! in such a fassion that Aloha would eventually fail and go bankrupt.

In really short terms.... Mesa learned what Aloha's real costs were, then Mesa subsidized Go!, selling tickets at below actual cost until Aloha went thumbs up.

A few other issues as well, but the misuse of inside information is what got them fined... but by then it was too late to save Aloha.

So, it was both morally and legally wrong, but it would result in JO getting his way.... and at the time was an affordable means to an end; so, he did it.


Very nasty stuff. Sniper, it sounds like the judge WAS being objective. :D


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