Judge details injunction against Delta

Yet, Delta later used increased flight cancellations by Mesa subsidiary Freedom Airlines to justify its decision to terminate their regional flying agreement worth $20 million a month, U.S. District Judge Clarence E. Cooper said in a written order filed Wednesday.

Cooper's order granted Mesa a preliminary injunction against Delta, blocking the Atlanta-based carrier from ending the contract. The case is being heard in federal court in Georgia.

The judge issued the injunction in May. He followed that up on Wednesday by articulating his decision in a 36-page filing.

Delta says it can terminate Freedom's contract if the regional carrier fails to maintain at least a 95 percent completion rate for three months within a six-month period.

But Cooper noted in his order that Mesa was under the impression that it could exclude some flight cancelations from JFK in its official completion rate. While Delta knew Mesa was doing this, Delta didn't tell Mesa that it would calculate completion differently.

The judge wrote that when Mesa Chief Executive Officer Jonathan Ornstein asked Delta's Chief Operating Officer Jim Whitehurst about moving a significant number of flights to cancel-prone JFK, Whitehurst said, "We're not trying to screw you with the move.... It's not our intention to penalize you for moving up to JFK."

Still, Delta said earlier this year that too many cancelations by Freedom allowed it to terminate their contract. Mesa officials said that if Delta did so, Mesa would be forced to file for bankruptcy protection and cut 700 jobs.

A Delta spokeswoman said the airline is disappointed with the court's ruling and intends to appeal. Mesa's general counsel Brian Gillman wouldn't comment about the injunction.

Mesa's shares ended down 2 cents to 47 cents in Thursday trading. Delta's shares rose 15 cents to $5.46.