The Phoenix-based parent of go! airlines has agreed to pay a minimum of $600,000 a year to use the Aloha Airlines name under a 10-year licensing agreement subject to court approval.

Mesa Air Group said it will pay Aloha Airlines' former owner Yucaipa Co.'s as much as 1 percent of its annual ticket revenue on its interisland service for using the Aloha brand name.

The deal is contingent on bankruptcy court approval of Yucaipa's bid to acquire Aloha's name and other intellectual property from the bankruptcy estate.

In a filing with the Securities and Exchange Commission yesterday, Mesa also agreed to pay Yucaipa 30 percent of the company's pre-tax operating profits from Mesa's interisland business minus the 1 percent ticket revenue payment.

If Mesa pulls out of the interisland market before the 10-year period, it would be required to provide Yucaipa with a $5 million promissory note payable over five years.

Details of licensing deal are part of a settlement agreement between Mesa and Yucaipa. The Advertiser reported last week that as part of the settlement Mesa agreed to pay Yucaipa $2 million and provide 2.7 million shares of Mesa stock, or about 10 percent of the company's outstanding shares to Yucaipa, which is headed by California billionaire Ron Burkle.

The deal resolves Yucaipa's anti-trust lawsuit against Mesa, which alleged that Mesa used confidential business information about Aloha to launch interisland carrier go! in 2006.

Yesterday, Yucaipa bid $750,000 for the Aloha name in an auction held by Aloha's court-appointed trustee Dane Field.

Attorneys for Hawaiian Airlines and former Aloha board member Richard Ing attended the meeting but did not submit an offer, said James Wagner, attorney for Field.

U.S. Bankruptcy Judge Lloyd King will hold a hearing on the matter today.