Judge Lifts Ban on Maui Airlines Flights

Newport Beach-based Maui Airlines expects to begin limited operations in Hawaii next week after an Orange County Superior Court judge refused Wednesday to issue a permanent injunction against the firm.

Carl W. Strombitski, a former flight instructor who claims he developed the business plan for the airline, called Judge Philip E. Schwab’s decision “depressing.” But he said he will pursue his suit against Maui Airlines, its investors and company president, Robert C. K. Lee, also vice chairman of Grand National Bank of Santa Ana.

Schwab’s decision lifts a previous temporary restraining order and allows Maui’s officials to proceed with efforts to raise cash for the venture.

Maui Airlines’ attorney, Edward B. Djang, said Wednesday the company’s efforts to attract investors to a private stock placement would have been “hurt” if the injunction were granted.

In his suit, filed last month, Strombitski claims he was ousted by the airline’s investors after he devoted two years to the project. The suit asks $500,000 in compensation plus unspecified punitive damages. Strombitski sought the injunction to prevent the new airline from using inter-airline baggage contracts he said he had negotiated, and marketing material, investment brochures and business plans Strombitski said he developed.

Additionally, he said he had generated several revenue-producing plans for the airline before he ever met Lee. Strombitski claims that when Lee became chief investor in the airline, Lee promised Strombitski its presidency and a five-year employment contract but later demoted, then fired him.

Maui Airlines officials deny Strombitski’s claims. Lee, who was in Hawaii and could not be reached for comment Wednesday, has said in court documents that the airline never used Strombitski’s ideas and said the agreements Strombitski claimed to have negotiated were not binding contracts.

The airline, incorporated in Hawaii, expects to begin charter and air tour service as soon as the Federal Aviation Administration gives the go-ahead, said Robert A. Jones, a consultant to Maui Airlines.

Marion Tilton, an FAA operations inspector in Honolulu, said he expects the airline to receive its certification Friday.

Maui then hopes to begin its scheduled commuter service between Honolulu and Maui in February, according to Jones. Maui has three, 18-passenger turbo-prop planes. It also will offer limited cargo transport service between the islands.