ADI Files More Financial Info, Shows Q1 Loss
YOUNGSTOWN, Ohio – Financial information submitted to the U.S. Department of Transportation shows Aerodynamics Inc. with more than $1 million on hand to guarantee its financial fitness, but also show the carrier operating at a $1.1 million loss during the first quarter.
The agency, which in January approved the certificate of public convenience and necessity for ADI to offer daily flights between Youngstown-Warren Regional Airport and O’Hare International Airport in Chicago, recently requested third-party verification the carrier has the funds to provide the service.
In response to DOT’s request for additional verification, ADI delayed the planned launch of the service until July 1, pending regulator approval.
ADI earlier had submitted a copy of its air services agreement with the Youngstown-Warren Regional Airport, which provides a $1.2 million revenue guarantee for ADI during the first year the service is established. DOT has advised ADI that it could only use the local share of the grant, which is $420,000, toward meeting the agency’s financial fitness test.
The latest round of documents includes a letter from Riverview Community Bank in Portland, Ore. The letter states that Fountain Village Development LLC, owned by ADI owner John Beardsley, has a checking account “in good standing and open” with “a balance in excess” of $1 million.
A separate letter, from Beardsley, “serves as my continuing commitment to providing financial support to ADI via my company, Fountain Village Development Co., if necessary, in amounts at least as much as would be necessary to meet the Department’s financial fitness test.”
A profit-and-loss statement included with ADI’s filing it operated with a loss of $1,119,905 for the first three months of 2016.
ADI had “significant maintenance-related costs” during the first quarter due to a maintenance check on one of its three aircraft, Mickey Bowman, ADI’s chief operating officer, explained in an email responding to a request for comment.
“The timing was particularly bad given the fact that we had to pass on a great deal of NCAA basketball charter activity with a third of our fleet unavailable,” he said.
DOT has not indicated how soon it might act on the company’s filing, Bowman said.
“ADI’s response to the DOT’s request for additional information certainly looks to be 100% accurate and complete,” Dan Dickten, director of aviation at the Vienna Township airport, said Thursday afternoon in an email to Bowman.
“We are excited and very optimistic the DOT will review the request for final certification and make ADI’s Certificate for Pubic Convenience & Necessity effective in a timely manner” to allow the launch of the Youngstown-to-Chicago service July 1, he added.
Copyright 2023 The Business Journal, Youngstown, Ohio.