Aloha Air name safe from go!


POSTED: Thursday, September 03, 2009

Mesa Air Group's attempt to rebrand its go! planes as Aloha Airlines has come to an anticlimactic landing.

Yucaipa Cos. and Aloha Airlines' Chapter 7 trustee Dane Field have withdrawn their appeal of a May ruling from U.S. Bankruptcy Judge Lloyd King that denied Yucaipa the opportunity to rebid for Aloha's intellectual property.

Federal District Judge J. Michael Seabright approved the order for dismissal Monday.

Yucaipa spokesman Frank Quintero, as well as Field, declined to comment on the reason for withdrawing the appeal.

Yucaipa had agreed to license the Aloha name to Mesa for 10 years for a minimum of $600,000 a year as part of a legal settlement in which Mesa also paid Yucaipa $2 million and issued Yucaipa nearly 2.7 million shares of Mesa stock. The Aloha estate had stood to gain 5 percent of Yucaipa's net recovery from the licensing fees.

Jonathan Ornstein, chairman and chief executive officer of Mesa, also declined to comment.

The withdrawal of the appeal does not invalidate the remainder of the Yucaipa-Mesa settlement. However, the withdrawal does leave open the door that Yucaipa could make another attempt to bid for the Aloha name, if it no longer has a licensing deal with Mesa.

“;The name has some value and Yucaipa, as the secured creditor, will want to realize some return on this collateral,”; said Chuck Choi, attorney for the Aloha trustee.