ADI response still under review by DOT

Staff report

YOUNGSTOWN

The prospect of having a Youngstown and Chicago flight service is still uncertain.

Aerodynamics Inc.’s response to an “order to show cause” — which tentatively denied the company’s request to provide service between Youngstown and Chicago — still is under review by the U.S. Department of Transportation, a DOT spokesperson said.

The proposed service is for flights between here and Chicago about 10 times per week in 50-passenger aircraft.

The company’s response, issued Feb. 5, explains its steps to answer concerns the DOT had with the company.

In the DOT’s order to show cause released Jan. 22, in addition to tentatively denying the flight service between Youngstown and Chicago, the department also proposed Aerodynamics (ADI) have its certification to provide charter flights revoked.

The written order allowed ADI to show cause why the tentative conclusions should not be adopted.

In June 2014, ADI, based in Beachwood, Ohio, and Atlanta, applied to have flights from Youngstown-Warren Regional Airport to Chicago O’Hare International.

ADI identified a pending civil case that named Scott Beale, ADI’s then-CEO and 80 percent majority shareholder, as a defendant in a lawsuit filed by Flight Test Aviation Inc. Through media reports, the DOT discovered that Beale was later found to have committed fraud.

Given Beale’s ownership and position of influence in the company, the DOT questioned ADI’s ability “to satisfy the Department’s requirements that an air carrier must possess a positive compliance disposition and the requisite competency to oversee its operations.”

In its response, the company revealed Beale had resigned as CEO, president and chairman of the board of ADI and its parent companies, ADI Holdings Co., and Aviation Capital Partners LLC. Beale also agreed to sell 100 percent interest in the companies.

Darrell Richardson, an airline-industry veteran, was appointed the new CEO, president and chairman of the boards of the companies, and new board members were appointed.

In its response, ADI’s requests include that the DOT issue an order to withdraw the show-cause order; confirm the management and board-member changes meet the department’s managerial and compliance disposition requirements; and make clear the show-cause order was not based in safety concerns with ADI’s operations.