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updated 00:14, Tue November 06, 2007

Mesa Air Fires Chief Financial Officer Murnane After Court Says He Destroyed Evidence

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PHOENIX (AP) -- Mesa Air Group Inc. said Monday it fired Chief Financial Officer George Murnane, following a court ruling that Murnane intentionally destroyed evidence pertaining to a lawsuit.

Vice President of Finance William Hoke will assume Murnane's duties on an interim basis, the carrier said.

Mesa placed Murnane, 49, on administrative leave in September, pending an internal investigation, after Hawaiian Airlines alleged in a lawsuit that he destroyed evidence showing Mesa misused confidential information to launch rival interisland carrier go! airlines.

Hawaiian said Murnane accidentally erased the files when he was purging pornographic material from his computers.

A U.S. bankruptcy judge on Tuesday found Murnane intentionally and in bad faith destroyed evidence pertinent to Hawaiian's case against Mesa. Judge Robert J. Faris ruled in favor of Hawaiian and ordered Mesa to pay the carrier $80 million. Mesa said Wednesday it will appeal the ruling.

Hoke, 46, has "served Mesa well" in his current position, Chief Executive Jonathan Ornstein said in a statement. The company did not indicate when it plans to name a permanent successor.

Mesa shares fell 2 cents to $4.62 in morning trading. The stock has dropped 7.5 percent since the lawsuit was first filed in February 2006.

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