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Pan Am is foggy about its financials
By Tim Logan
Times Herald-Record
[email protected]
Stewart Airport – It seems Stewart's newest airline doesn't know how much money it's got in the bank.
Boston-Maine Airways, which runs Pan Am Clipper Connection, admitted Tuesday that it filed false financial statements with the federal government earlier this year.
The news came in a letter to the U. S. Department of Transportation, which is weighing Pan Am's request to add four Boeing 727s to its fleet. Those extra planes would let the tiny airline add service at Stewart.
In the letter, lawyer Robert Culliford wrote that a former senior vice president, John Nadolny, had submitted falsified bank statements as part of the airline's application. The statements indicated that Boston-Maine had $6.7 million in capital reserves, more than the $4.7 million required by the DOT for the new planes.
The lawyer's letter didn't say how much Boston-Maine actually has in the bank, just that there was a "significant discrepancy." It plans to file new statements soon.
Boston-Maine officials didn't return calls yesterday. But Culliford wrote that Nadolny, who left the company in June, acted alone and that senior management reacted with "shock and astonishment," when they learned the news.
Hogwash, says the Air Line Pilots Association, which has been fighting Boston-Maine since it laid off dozens of pilots last fall and wants the airline grounded entirely.
"This is a systematic problem," said Marcus Migliore, an attorney for the ALPA. "They're trying to blame this on Mr. Nadolny and scapegoat him."
Since Pan Am arrived at Stewart last month, it's had a bumpy ride.
The carrier had hoped to have one or two new planes flying by now. Instead, it's been hit with delays and had to reroute some flights through multiple cities.
Stewart spokeswoman Tanya Vanasse declined to comment on the airline's latest troubles.
John D'Ambrosio, president of the Orange County Chamber of Commerce, said he's met Boston-Maine CEO David Fink several times and was impressed.
"I'd find it hard to believe that he would condone anything like that," D'Ambrosio said. "David Fink is a business person. My opinion is that he's an honest business person."
Still, the incident gives Fink's airline a black eye. And if it drives Pan Am out of business, that would be bad news for Stewart, said Richard O'Beirne, an officer with the Stewart Regional Alliance.
"
We just don't need another carrier that came and went," he said. "It's just depressing as hell if, in fact, they can't make it."