Aloha Airlines may grace Hawai'i's skies once again, though this time the name would be used by the bankrupt carrier's one-time nemesis, the owner of go! interisland airlines.

Mesa Air Group announced it had reached an agreement with the former controlling shareholder of Aloha Airlines that includes the possible use of the name.

Mesa, the owner of go!, said the agreement includes it making a $2 million cash payment to Yucaipa Co., which was one of Aloha's biggest shareholders.

Mesa also agreed to issue common stock equaling 10 percent of its current share outstanding count to Yucaipa.

"We are extremely pleased to resolve all claims put forward in this litigation and look forward to re-branding service under the Aloha name in the near future," said Jonathan Ornstein, chairman and chief executive officer of Mesa.

Aloha filed the lawsuit against Phoenix-based Mesa in January 2007, alleging the company misused confidential information to launch go! and drive Aloha out of business. A similar lawsuit by Hawaiian Airlines was settled earlier this year for $52.5 million.

Yucaipa got rights to the lawsuit after Aloha filed for bankruptcy and shut down its passenger service in March. The 62-year-old Aloha was the state's second-largest airline with more than 3,500 employees.

The agreement also calls for certain interisland flight benefits for former Aloha airlines workers.

Mesa said that it may gain use of the Aloha name if Yucaipa prevails in an upcoming bankruptcy-court auction that will sell off the name and other trademarks of Aloha. The agreement calls for Yucaipa to license the name to Mesa if that occurs.