Mesa Air Group could be set to resurrect the Aloha brand-name for its own Hawaiian inter-island carrier Go! after agreeing a lawsuit settlement with the former controlling shareholder of Aloha Airlines.

Phoenix-based Mesa had stood accused of misusing confidential Aloha information to which it had privileged access. Mesa set up rival carrier Go! two years ago, sparking a fierce price war in Hawaii which Aloha blamed for its collapse in March this year.

Mesa does not admit any wrongdoing under the terms of the settlement, which involves its making a $2 million cash payment and issuing 10% of its stock to Aloha shareholder Yucaipa, as well as providing inter-island travel benefits to former Aloha employees.

But it could also result in the resurrection of the Aloha name, should Yucaipa be successful in securing rights to the brand in an upcoming bankruptcy auction.

"We are extremely pleased to resolve all claims put forward in this litigation and look forward to rebranding service under the Aloha name in the near future," says Mesa chief Jonathan Ornstein.

"This settlement resolves all claims by Aloha Airlines related to Mesa's entry into the Hawaiian inter-island market and permits us to focus solely on our core competency of providing the best service, convenient schedules and low-fare pricing to our customers."

Go! operates Bombardier CRJ200s on services between Honolulu and the island destinations of Hilo, Kahului, Kona and Lihue.

Mesa settled a similar lawsuit with Hawaiian Airlines earlier this year, through a hefty payment, and the Aloha litigation - among other issues - had raised concerns over Mesa's long-term prospects.

Source: Air Transport Intelligence news