HONOLULU -- Mesa Airlines said it has settled a lawsuit with Aloha Airlines and hopes to acquire the bankrupt airline's name and rebrand the company in Hawaii, KITV-TV reported.

The Phoenix-based airline said it had reached a deal to end the lawsuit with Aloha, which filed for bankruptcy on March 20 and shut down completely 11 days later.

"We are extremely pleased to resolve all claims put forward in this litigation and look forward to rebranding service under the Aloha name in the near future," said Mesa chairman and CEO Jonathan Ornstein.

Mesa hopes to purchase the Aloha name in an auction planned next week in a federal bankruptcy court.

The 2007 lawsuit accused Mesa of misusing Aloha's confidential information that Mesa obtained as a potential investor during Aloha's bankruptcy. It also accused Mesa of predatory pricing designed to run Aloha out of business.

Under the terms of the settlement, Mesa agreed to make a $2 million case payment, issue shares of Mesa common stock equal to 10 percent of its current outstanding shares, provide certain Hawaiian inter-island travel benefits to former Aloha Airlines employees and will license the Aloha name if it is the winning bidder in the auction.

Mesa did not admit to any wrongdoing in the settlement.

Earlier this year, Mesa paid Hawaiian Airlines $52.5 million to settle a lawsuit that alleged Mesa misused confidential Hawaiian information to enter the Hawaii market in June 2006.

Mesa currently operates 152 aircraft with over 800 daily system departures to 126 cities, 38 states, the District of Columbia, Canada, and Mexico.