Tuesday, January 27, 2015YOUNGSTOWN, Ohio -- Aerodynamics Inc. plans to release a statement this morning in response to the order issued by the U.S. Department of Transportation last week that not only called into question the carrier’s plans to provide daily service for Youngstown-Warren Regional Airport but its fitness to operate, airport aviation director Dan Dickten says.
An ADI spokesman said Monday that he expected the company to issue a statement later that day, but Dickten said later in the day that the release would be forthcoming Tuesday.
“We’ve been in contact with ADI officials and other interested parties on this matter throughout the weekend and have been assured that they are preparing a response to the show-cause order,” Dickten says.
Officials with the regional airport have been working with the Michigan-based carrier for several months and were waiting to hear from USDOT regarding its application to upgrade the airline’s Certificate of Public Convenience and Necessity to permit it to provide service from the regional airport in Vienna Township to Chicago O’Hare International Airport. From there, passengers would be able to access national and international destinations.
Last week, the department issued an order to show cause proposing not only to deny Aerodynamics’ application to offer expanded service but to revoke its existing certificates permitting it to operate elsewhere.
“Our review of the record in this case indicates that ADI does not possess the managerial competence necessary to oversee its current charter and proposed scheduled passenger operations, not does it have the proper compliance disposition and regard for the laws and regulations governing its services,” Brandon M. Belford, the department’s deputy assistant secretary for aviation and international affairs, wrote in the order.
The “issue of concern” for the Transportation Department officials, as identified in the order, is the business dealings of Scott A. Beale, ADI’s CEO and a member of its board of directors, and a majority stakeholder in the company that owns ADI. A civil jury trial last July found that Beale had committed fraud by making false statements to secure investment capital.
ADI didn’t notify the department about the outcome of the civil case, “exacerbating the issue,” according to the order.
ADI and “interested persons” have 14 days following the order’s service date to “show cause why the tentative findings and conclusions … should not be made final” and answers to objections will be due seven days later.
Copyright 2015 The Business Journal, Youngstown, Ohio.
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