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Hawaiian market entrance and related lawsuits
In 2004, Mesa Air Group met with Hawaiian Airlines and Aloha Airlines, both in bankruptcy at the time, and reviewed operational records and forecasts, but ultimately decided not to acquire or invest in either carrier. In 2006, after Mesa announced plans for its "go!" sub-branded airline in Hawaii, Hawaiian Airlines sued to block the launch, claiming that Mesa had violated a confidentiality agreement. Aloha Airlines filed a similar suit against Mesa later that year.
In September 2007, the CFO of Mesa Air Group was placed on administrative suspension as irregularities were investigated during the Hawaiian Airlines case. In an announcement, Mesa Air Group CEO Jonathan Ornstein assured shareholders and investors that "the alleged misconduct does not involve the financial controls, financial statements or operations of the Company."[7] The judge overseeing the Mesa go! case, however, ruled Mesa destroyed evidence.and ordered Mesa Air Group to pay an $80 million interest bearing settlement with interest, along with legal fees, to Hawaiian Airlines.
Aloha Airlines ceased operations in March 2008, and the Aloha Airlines suit was settled in November 2008. Mesa agreed to pay $2 million, 10% of Mesa's common stock, and provide travel benefits on go! for former Aloha employees. Initially the settlement agreement included a provision whereby Mesa Air Group could license the Aloha name, but a federal judge rejected that agreement on the basis of Mesa's alleged misconduct in the Hawaii market.
Mokulele acquisition
In October 2009, it was announced Mesa Air Group's subsidiary "go!" would be taking over all of the Hawaii flying done by Mokulele Airlines and R.A.H.'s Shuttle America. The combine operation was rebranded as go! Mokulele. Mokulele operated a fleet of 4 Cessna Caravan aircraft that were retained in the combined operation, but the Embraer 170 aircraft operated by Shuttle America on behalf of Mokulele were removed from Hawaii service.
