DOT questions ADI, Chicago flights still expected to start June 13

May 5, 2016 at 12:09a.m.

VIENNA

Aerodynamics Inc. has been handed another setback in its plans to bring daily Chicago service to the Youngstown-Warren Regional Airport.

The U.S. Department of Transportation found on Tuesday that “ADI did not provide sufficient information to make its authority effective.”

“We are consistently working on this,” said Dan Dickten, director of aviation at the airport.

The department highlighted three concerns it has with ADI’s recent request for the DOT to make its service effective. First, the department was concerned about the certificate of insurance submitted because it appeared to be modified and is missing required information.

ADI said Wednesday that concern has been addressed.

The DOT also requested ADI provide citizenship or compliance information for Armando Cardenas, ADI’s new director of safety, security and regulatory compliance.

This also has been addressed, ADI said.

Lastly, the DOT has questioned ADI’s financial fitness. It has requested ADI provide third-party verification that it has the funds to meet the department’s fitness test and that ADI verify “the commitment of funds” from John Beardsley, ADI’s owner.

“We hope to answer their remaining questions before the week is out and remain dedicated to serving the Youngstown market,” said Mickey Bowman, vice president of airline services for ADI, in an email statement sent Wednesday.

ADI still plans to start the Youngstown/Chicago service on its 50-seat Embraer ERJ-145 on June 13. The Beachwood, Ohio, and Atlanta-based ADI bumped its launch date from June 1 to June 13 last week to give more time to the U.S. Department of Transportation to grant its final approval for the scheduled service.

ADI initially applied to provide the service in June 2014. The DOT tentatively denied the application because of concerns over the airline’s former leadership. The ownership and much of the leadership have since changed. After vetting the airline, the DOT tentatively approved the service in late January.

The airline, which offers charter services, will provide 10 flights a week to Chicago O’Hare International Airport. The tickets are expected to go on sale next Wednesday on ADI’s website and through its call center. Prices will be as low as $99 for a one-way trip and as high as $250, the company has said.

The Western Reserve Port Authority, which operates the airport, is offering a $1.2 million revenue guarantee to ADI to ensure it makes a profit during the startup phase of the service. Of the $1.2 million, $780,000 comes from the department’s Small Community Air Service Development Program and $420,000 comes from the local hotel-bed tax fund.

ADI provided the DOT with a balance sheet dated March 31 that shows a “positive working capital position of $353,898,” the Tuesday DOT filing reads. ADI estimates that it needs $1.325 million to meet the DOT’s financial fitness criteria.

“ADI asserts that the $1.2 million guarantee should be applied to reduce the department’s financial fitness test to $125,000,” the filing reads.

The DOT said it has communicated to ADI before that “it could not use the full $1.2 million” to meet the department’s financial fitness test.

But the DOT says the company can use the local portion of $420,000.

“At this time, we find that ADI does not have sufficient funds to meet the department’s financial fitness test,” the filing reads.

Bowman said ADI was surprised and confused as to why the full amount of the $1.2 million could not go toward the fitness test.

The DOT did not return phone and email requests to comment Wednesday.