ADI responds back to DOT, assures ex-CEO out

Staff report

VIENNA

In a recent filing to a federal agency, Aerodynamics Inc., the company that wants to bring Chicago flights to Youngstown-Warren Regional Airport, made it clear there are no agreements, written or oral, with the company’s former CEO.

ADI’s counsel recently responded to the U.S. Department of Transportation’s request for more information on the company’s operations.

Included in ADI’s filing is a declaration from former CEO Scott Beale that he does not have any written or oral agreements with ADI or its parent companies: ADI Holdings and Aviation Capital Partners.

A primary concern of the transportation department was the influence of Beale, majority shareholder and chairman of the ADI board and its parent companies, since he was found to have committed fraud in the past.

“Except for my interest in Aviation Capital, that entity’s Limited Liability Operating Agreement, my commitment to sell my ownership interest in Aviation Capital and, pending the sale, to place my ownership interest in Aviation Capital into a voting trust, I personally do not have any written or oral agreements between myself and ADI, ADI Holdings,” Beale declared in the filing.

After ADI requested to provide flights between the local airport and Chicago about 10 times per week in 50-passenger aircraft in June 2014, the DOT issued an “order to show cause” to the company.

In that order, the department tentatively denied the flight service between Youngstown-Warren and Chicago, and also proposed ADI have its certification to provide charter flights revoked unless changes were made.

Airline-industry veteran Darrell Richardson was appointed to take on Beale’s positions.

The transportation department then requested more information in February from the company, including any agreements Beale may have with ADI, its parent companies or board members.

The department also wanted to know the process of selecting Richardson to lead the company and be informed of any relation the board members may have with Beale.

ADI board members and Beale all declared to not have any agreements and have no relation to each other in the recent response.

The company also explained how Richardson filled Beale’s position and answered other DOT questions.