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Journal Opinion
Poor Judgment at the AirportOfficials at the Youngstown-Warren Regional Airport and the board of the Western Reserve Port Authority can draw little comfort from the fact that the loudly promoted -- but ultimately ill-fated -- venture with Pan Am Clipper Connection cost them little financially. Of greater concern should be the price they paid in credibility. All too often residents of this community have had their hopes raised only to see them suddenly dashed. And the port authority, operating more under a microscope than before, can't afford another blunder of this magnitude, an episode that handed more ammunition to persistent critics, those who describe the airport as a black hole that should be shut down rather than drain more local tax dollars. As consistent advocates of the spirit of regional cooperation embodied by the airport, we do not count ourselves among those critics, and as members of the business community we appreciate the value of a vibrant airport that fosters economic development.We would be remiss, however, if we failed to point out that signs calling for greater caution were clearly missed (or ignored), including, but not limited to, the concerns U.S. Rep. Tim Ryan expressed barely two weeks before the Pan Am announcement.Less than two months before the Pan Am announcement, lawyers for the carrier, in a filing to explain why it had not paid five dismissed pilots on schedule, acknowledged a "lack of operating revenues" and "then-insufficient liquidity." The pilots were paid after Pan Am completed the sale of certain assets. That might not have concerned the Department of Transportation, but it certainly should have raised a red flag for anyone planning on doing business with the company.Pan Am has been engaged in a running labor dispute with the Air Line Pilots Association, which asserted Pan Am shifted work to a non-union affiliate. While court rulings in the case have gone both ways, a company with a troubled labor history enters the heavily pro-union Mahoning Valley at a distinct disadvantage. After all, unionized workers are among those who have the financial wherewithal to afford plane tickets.However, most damning was the acknowledgement in early June that John Nadolny, senior vice president and general counsel (as in lawyer), had forged a surety bond related to the payments for the dismissed pilots. The suggestion that this was an "isolated incident" can be charitably described as naive. As it turned out, he also falsified a bank statement submitted to federal officials as part of Pan Am's effort to certify additional aircraft, a request on hold pending a review of the company's finances.While we acknowledge hindsight is 20/20 and the failed deal had little financial cost, the price paid in the port authority's credibility was dear, and the board can scarcely afford to squander its remaining good will. We are encouraged that airport officials have pledged to be more prudent, but they have no alternative. Anyone involved in a repeat of this fiasco needs to be on the next flight out."