FYI
Pan Am Owes $300,000 in Fees, but Sanford, Fla., Airport Is Willing to Wait
The Orlando (FL) Sentinel
SANFORD, Fla.-- Pan American Airways Corp. owes Orlando Sanford
International Airport more than $300,000 in past-due rent, fees and other
charges, an auditor for the airport confirmed this week.
But officials at the airport, where Pan Am plans to discontinue service for
at least a month, say they won't push to collect the money until after the
airline revamps its business plan.
Officials of Pan Am, one of only two domestic carriers remaining at Sanford,
have said the airport would play a major role in the airline's new plan.
Pan Am's unpaid bills account for more than 80 percent of the airport's
outstanding account receivables, according to an audit by McDirmit, Davis
and Puckett. The Orlando accounting firm raised questions about the debt,
whether it would be repaid and how the airport might handle a default, said
Elden McDirmit, a partner in the firm.
Steve Coover, the airport's attorney, said the airport could place a lien on
Pan Am's assets, including its aircraft at Sanford, improvements made by the
airline to airport buildings and other personal property in those buildings.
But airport President Larry Dale said he has no immediate plans to try to
collect on the debt. That's because Pan Am has said it would repay the money
on its own this month, he said. He also pointed out that the airline
continues to put money into other facilities at the airport, including
construction of a new, $800,000 flight-simulation center. Work on the center
began this week, he said.
"I don't have any fear that they're leaving us," he said. "I trust Dave
Fink."
Fink, Pan Am's president, reaffirmed Wednesday that Sanford would be a major
player in Pan Am's future.
"There's no question about it," he said. "My training center is going to be
in Sanford. I've got four very expensive simulators down there."
The airport also is to be a hub for planned flights to the Caribbean and
Latin America, Fink said.
In the past year, dramatic cutbacks in service by Pan Am have been smoothed
over with promises of a bigger commitment in the future.
In March, the airline announced it was planning a major expansion into Latin
America. But in September, the carrier cut flights at Sanford from 16 to six
a day. Several additional flights were added for the holiday season, but
after Sunday, Pan Am plans to stop all flights at Sanford until Feb. 13.
The monthlong layoff is in preparation for the new business plan, airline
officials have said. Details of that plan were supposed to be announced
later this month, but Fink said Wednesday that word may not come until
March.
The airport's willingness to work with Pan Am may cost it less than some
incentives offered by other regional airports, such as Melbourne
International and Daytona Beach International.
"We look at it as an incentive program for them to keep their hub here,"Dale
said.
Daytona Beach agreed to subsidize Continental Airlines for each month
flights are not, on average, 90 percent full. Melbourne is offering free
airport fees, complimentary customer parking and marketing help to any
airline that begins daily flights to a new destination.
In 2002, domestic service accounted for 30 percent of passenger traffic at
Sanford. But Pan Am's cutbacks, plus last week's permanent pullout by
Vacation Express, will leave the airport with one domestic carrier,
Southeast Airlines. The remainder comes from international charter service,
which has been in decline since the Sept. 11, 2001, terrorist attacks.
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