ATW Daily News

Mesa says CFO mistakenly deleted computer files purging pornography

Friday September 28, 2007

The legal dispute between Hawaiian Airlines and Mesa Air Group took an unexpected turn this week when Mesa attorneys told a US Bankruptcy Court in Honolulu that CFO Peter Murnane mistakenly deleted files related to the case as he attempted to purge pornography from his computer.

"Mesa's references to pornography are a transparent effort to distract the court's attention and to undermine the credibility of one of Mesa's most senior officers," Sidney Levinson, a Hawaiian Airlines attorney, told ATWOnline in a written statement. "You have to wonder why Mesa thinks that smearing their own star witness with allegations of pornography benefits them."

Murnane was put on administrative leave by Mesa last week following allegations by Hawaiian that he inappropriately deleted data that is material to Hawaiian's lawsuit against Mesa (ATWOnline, Sept. 24).

Hawaiian contends that Mesa used confidential information it obtained as a potential investor during Hawaiian's bankruptcy restructuring to formulate plans for its budget startup carrier go!, which began flying in Hawaii last June. Mesa denies that it used any information other than that which is readily available to the public. The allegation is at the heart of proceedings being held this week in bankruptcy court and Hawaiian claims Murnane intentionally deleted data that could help prove its case.

Mesa considered making a bid for Hawaiian as well as Aloha Airlines in 2005 when both carriers were operating under bankruptcy protection. Since the arrival of go!, both incumbents have lost millions of dollars.

Mesa CEO Jonathan Ornstein testified in court this week that he never intended to drive either Hawaiian or Aloha out of business, according to a report in the Honolulu Advertiser. "We always thought we would lower prices [in the inter-island market]," Ornstein said. Hawaiian reportedly is seeking $173 million in damages.

by Sandra Arnoult

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