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Federal application for daily flights reveals company’s financial details
Aerodynamics Incorporated Application
Document
Application of Aerodynamics Incorporated for a Certificate of Public Convenience and Necessity pursuant to 49 USC§ 41102 to engage in Scheduled Interstate Air Transportation of Persons, Property and Mail.
By Ed Runyan
VIENNA
An application filed with the U.S. Department of Transportation says a Beachwood, Ohio, company is proposing daily air service between Youngstown-Warren Regional Airport and Detroit Metro Airport.
But an informed source says the service more likely would use Chicago’s O’Hare International Airport and begin as soon as November.
The service would allow travelers to reach destinations throughout the world by way of Chicago.
The company involved in the proposal is Aerodynamics Inc. of Beachwood, also known as ADI, which would operate the service under a different name that has not been disclosed. The company would deliver passengers to Chicago on 50-seat regional jet aircraft.
Dan Dickten, director of aviation at the Youngstown-Warren Regional Airport, will ask the Western Reserve Port Authority, which runs the local airport, on Wednesday for approval of the startup of the service.
“Interline agreements” between ADI and airlines such as American, Delta, Frontier, United and US Air would facilitate seamless connectivity to domestic and international destinations, Dickten said.
The application says the Youngstown service ADI hopes to start would be 10 flights per week — two on Monday, Thursday and Friday and one on Tuesday, Wednesday, Saturday and Sunday.
It estimates it would carry more than 30,000 passengers, especially business travelers, the first year.
The company would be assured a 5 percent profit margin through a revenue guarantee of up to $1.2 million from the port authority, the application says.
The port authority offered United Airlines a similar revenue guarantee consisting of a DOT grant of $780,000 and $420,000 from the port authority.
ADI would access a $500,000 revolving line of credit from Far West Capital and receive an additional $130,000 from the port authority before starting service, ADI says.
In response to an Aug. 11, 2014, DOT request for additional information from ADI, the company clarified that it was now seeking authorization to begin service between Youngstown and “the most optimal airline hub,” rather than identifying only Detroit.
It also lists five other airports besides Detroit that could be profitable destinations from Youngstown: Philadelphia, Atlanta, Charlotte, Washington and Chicago.
Before Dickten and the airline can announce the start of the service, however, the airline needs DOT approval of its application for a Certificate of Public Convenience and Necessity to engage in interstate scheduled air transportation.
ADI submitted an 82-page application to the DOT on June 25 containing the company’s proposal and financial information about the company, which emerged from Chapter 11 Bankruptcy protection Aug. 12, 2013.
The purpose of the application process is to determine ADI’s “financial fitness in order to ensure it will have access to resources sufficient to commence operations without posing an undue risk to consumers,” said Lauralyn J. Remo, chief of the air carrier fitness division of the DOT.
ADI leases three 50-passenger aircraft and would use those to operate the Youngstown service, according to the DOT application.
Its chief executive officer, Scott A. Beale, was sued by Flight Test Aviation Inc. in connection with the bankruptcy case, the application says. Beale is accused of being responsible for the losses suffered by Flight Test Aviation, but Beale believes he has no liability in the matter.
ADI hasn’t had any aircraft accidents or incidents as defined by federal regulations, the application says.
ADI was founded 54 years ago and provided aircraft services in Waterford, Mich., for many years and operated large aircraft from 2003 to 2010. It ceased operations in October 2012 because of “financial pressures,” the application says. It filed for Chapter 11 Bankruptcy on Jan. 7, 2013, and soon relocated its operational headquarters from Michigan to Kennesaw, Ga.