ADI moves to distance itself from former boss Scott Beale

ADI Aerodynamics (Pontiac Oakland County International) says its former CEO, President, and Chairman, Scott Beale, has moved to divest himself entirely of his shareholding in the company following a threat by the US Department of Transportation to revoke the airline's interstate and foreign charter passenger air transport certificates.

Following ADI's application to the DOT for an interstate scheduled air transport licence last year, a background check by the regulatory body uncovered a court case in which Beale was found guilty of fraud. As neither Beale nor ADI management had ever informed the DOT of the case or its outcome as prescribed by law, the body then threatened to revoke ADI's licences on the grounds that its management did not possess the capacity to run an airline in the transparent, compliant manner specified by DOT regulations.

However, in a bid to address the DOT's concerns, the carrier says Beale has, in addition to stepping down from his administrative positions at the airline, also resigned from similar positions held at the ADI's parent companies, ADI Holdings Company, Inc. (ADI Holdings), and Aviation Capital Partners, LLC. ADI is wholly owned by ADI Holdings Company, Inc., which in turn is owned 100% by Aviation Capital Partners LLC. Aviation Capital Partners LLC is 100% owned by Scott Beale .

"Mr. Beale no longer has any involvement in the governance or management of the Companies. He does not hold any management, employee, sales agent, consultant or board position with the Companies," an ADI filing read. "Mr. Beale - as the sole shareholder of the ultimate holding company of ADI - has committed to, and has already begun the process of, selling the Companies to one or more independent third parties as soon as reasonably practicable."

In addition to Beale's departure, the operator has also appointed new executives to its board with F. Darrell Richardson appointed President, CEO, and Chairman of the Board of each of the companies involved in ADI's shareholding, while Mickey Bowman, Kenneth Swieter, and Donald Greeson were appointed to the boards of each of the companies in varying capacities.

In light of the drastic changes made to its leadership, ADI has asked the DOT to withdraw its Show Cause Order and to reconsider its application for a scheduled operators permit.