Eastern Railroad Discussion > Guilford air carrier in DOT crosshairs

WASHINGTON -- Boston-Maine Airways Corp., controlled by the same individuals who control Guilford Transportation, is in the crosshairs of the Department of Transportation.
DOT Assistant Secretary for Aviation Karan K. Bhatia has asked DOT's inspector general to initiate an investigation into alleged fraud committed by the airline's general counsel, who previously held a similar position on the railroad.

Boston-Maine, according to the St. Petersburg (Fla.) Times newspaper, operates flights under the Pan Am name, flying three Boeing 727 jets and 13 small turboprop planes. Boston-Maine has applied to add four 727s and fly the large jets from U.S. cities to destinations in the Caribbean and Central America.

The Air Line Pilots Association (ALPA) is seeking to have Boston-Maine's certificate to operate as a commercial air carrier revoked.

ALPA told DOT that Boston-Maine's general counsel, John Nadolny, submitted to ALPA a forged document as part of the proceedings. In fact, Boston-Maine subsequently admitted to DOT that the document -- an insurance performance bond -- was forged and that Nadolny no longer was in the employ of Boston-Maine.

Boston-Maine said that Nadolny acted alone and that he neither acted at the direction of his superiors, nor with the knowledge or approval of his superiors, who include David Fink and Timothy Mellon. Fink told the St. Petersburg newspaper, "We had a thief amongst us."

In her letter to the inspector general, Bhatia notes that the circumstances surrounding the forged document raise "additional concerns about the veracity of Boston-Maine's representations" to DOT, since almost all of the pleadings filed by Boston-Maine between Jan. 7 and June 3, 2005, were cosigned by Nadolny.

Separately, DOT informed Boston-Maine by letter on July 20 that DOT is unwilling "to accept the factual statements made in this case without additional assurance from current senior company officials that the facts stated in those pleadings were true and correct."

DOT said Boston-Maine also has admitted falsifying bank statements submitted to DOT in support of the airline's fitness.

According to Boston-Maine, it was Nadolny who altered the figures shown on the Mellon Bank statement filed with DOT.

In light of this, Bhatia asked the inspector general to consider whether Nadolny's actions "were limited to only those instances that were previously disclosed and whether other individuals employed by Boston-Maine were involved in, or knew of, Nadolny's actions."

Bhatia said DOT intends to defer action on all open Boston-Maine dockets pending completion of the inspector general's report.

More information may be found in DOT Dockets OST-2000-7668, OST-2003-14985, and OST-2004-19919.

According to the Portsmouth (N.H.) Herald newspaper, ALPA alleges that companies owned and managed by Mellon and Fink have repeatedly transferred work from unionized to non-union groups to avoid their collective bargaining obligations under the Railway Labor Act, repeatedly discharged pilots because they were unwilling to fly in violation of Federal Aviation Administration safety rules, repeatedly refused to comply with final and binding decisions of system boards of adjustment as required under the RLA, and willfully violated environmental laws.

In one instance, a Pan Am pilot determined he could not complete a flight leg he had been assigned without violating the FAA flight time restrictions. For failing to fly, Donald Simonds was fired. An arbitration panel ordered Simonds' reinstatement, and the decision was upheld by a federal court.

"Guilford doesn't want to be told what to do," an unidentified pilot told Orlando Weekly On-Line. "Anytime a pilot tries to file a grievance, they are either escorted off the property by police or their phone calls are simply ignored. Guilford also refuses to enter into negotiations, which it is obligated under its agreement to do."

According to ALPA, Fink regularly refers to ALPA as "Alpo" and calls union leaders, "union jackasses."

Linda Toth, a former Pan Am manager, testified under oath, according to Orlando Weekly On-Line, that in early 2004, Fink told her "it was going to be smooth sailing with Boston-Maine" after they got rid of "the union jackasses," and that within six months all the Pan Am planes would be flying under the Boston-Maine certificate.

ALPA contends that Boston-Maine is "unfit" to fly as a commercial airline.

ALPA has compared the activities of Boston-Maine with Guilford's railroad operation. A federal district court in Maine ruled that Guilford attempted to evade its collective bargaining agreement, and that decision was upheld by a federal appeals court, reported the Portsmouth Herald.

August 4, 2005