Mesa denied Aloha!
#11
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.
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 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.
Last edited by DeltaPaySoon; 05-18-2009 at 01:08 PM.
#12
#15
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.
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.
#16
Gets Weekends Off
Joined APC: Sep 2008
Posts: 126
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."
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."
#18
--
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.
Last edited by Sniper; 05-20-2009 at 06:27 AM. Reason: corrected the 'case history' for accuracy
#19
Gets Weekends Off
Joined APC: Jun 2008
Position: Reclined
Posts: 2,168
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.
#20
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.
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.
Last edited by newKnow; 05-20-2009 at 09:30 AM.
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