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ADI seeks new ownership, fights to provide Chicago-Youngstown airline service
By Kalea Hall
VIENNA
Aerodynamics Inc. still wants to provide airline service between Chicago and Youngstown – and the Western Reserve Port Authority still supports the service.
“We have not lost sight of the Youngstown-Chicago service,” said Dan Dickten, the Youngstown-Warren Regional Airport’s director of aviation.
Aerodynamics Inc. or ADI submitted an update letter dated June 25 to the U.S. Department of Transportation’s Air Carrier Fitness Division on the state of the company.
“ADI plans to operate scheduled passenger service between Youngstown-Warren Regional Airport (YNG) and Chicago O’Hare International Airport (OHD),” the filing states. “The Youngstown community remains fully supportive of ADI’s proposed scheduled operations.”
Enclosed in the filing is a letter dated May 20 signed by Dickten to reaffirm the WRPA’s and airport’s “commitment to working with ADI towards establishment of scheduled air service.”
Allegiant, a Las Vegas-based airliner, is now the only commercial airline in operation at the airport in Vienna. Service includes flights to Myrtle Beach, S.C., and Tampa, Orlando and Fort Myers, Fla.
In its latest filing, ADI informed the department that it will be acquired this month by ADI Acquisition Co. LLC., an Oregon company owned by an Oregon developer and his wife who already are the primary owners of an airline.
On May 6, 2015, ADI Acquisition Co. entered into a stock-purchase agreement with ADI Holdings Inc., and Scott Beale, former ADI chief executive officer and 80 percent majority shareholder.
ADI – a Beachwood, Ohio, and Atlanta-based company that offers charter services – applied in June 2014 to provide flights between the local airport and Chicago about 10 times per week in a 50-passenger aircraft. After that application, the DOT tentatively denied the flight service and proposed ADI have its certification to provide charter flights revoked.
Beale’s ownership and influence on the company concerned the DOT because he was a defendant in a civil lawsuit filed by Flight Test Aviation Inc. DOT officials later discovered a federal judge said Beale committed fraud while soliciting investment funds from a former business partner in 2012.
Beale resigned as CEO, president and chairman of the ADI and its parent companies in January, and Darrell Richardson, an industry veteran, took over.
All of Beale’s ownership interest in Aviation Capital Partners, ADI’s holding company, was placed into a voting trust.
DOT was encouraged by the company’s changes but wanted to see Beale’s ownership sales interest completed within 120 days.
ADI said in its recent filing the stock-purchase agreement with John Beardsley and his wife, Janet, was complete before the 120 days.
The Beardsleys are the primary owners of SeaPort Airlines, through holding company Janair LLC. SeaPort is a scheduled commuter airline based in Portland.
After the change of ownership, the Beardsleys will be the only members on ADI’s board of directors. Richardson will remain president of ADI and will oversee day-to-day operations. Rob McKinney, CEO of SeaPort, will be CEO of ADI. ADI’s new chief pilot will be Michael Prinzi.
ADI would use a $1.2 million revenue guarantee offered by the port authority to ensure it makes a profit during the start-up phase of the Youngstown-Chicago service. The port authority also has pledged another $130,000, The Vindicator reported last November.