THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, October 12, 1996 TAG: 9610120522
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY DEBBIE MESSINA, STAFF WRITER
DATELINE: NORFOLK LENGTH: 48 lines
Air South, the low-fare airline that has been known to amass large debts and then skip town, is three months behind on rent payments to Norfolk International Airport.
The Columbia, S.C.,-based carrier has been flying out of Norfolk for four months.
Wayne E. Shank, the airport's deputy executive director, said a letter was mailed this week to Air South saying the airline owes $32,000 in back rent and fees.
``We will make every possible effort to resolve the matter,'' he said. ``If you operate here, you've got to pay your bills.''
Air South's Dennis Crosby, airline services vice president, said the amount the airline owes is closer to $8,000, because his company typically pays bills 30 to 60 days after they're due.
``There was one payment that slipped past us,'' said Crosby, adding that the bill will be paid by Monday.
It is standard for an airline to have a 60-day lag in making payments, said Stuart Klaskin, an aviation consultant with Klaskin, Kushner and Co. in Miami.
``Almost anybody who deals with airlines as a practice becomes used to that,'' he said. ``It's at the 90-day point that most airport authorities start to get a little threatening.''
The late payment should not be considered a precursor to pulling out of Norfolk, Air South officials said. In fact, the airline has plans to beef up service in Norfolk.
``We're not the same company of two years ago, one year ago, or even 90 days ago,'' said Thomas J. Volz, marketing vice president.
In the past, Air South has skipped around the Southeast in search of underserved and discount-hungry markets. It has a pattern of starting services in new markets and then retreating, sometimes leaving behind debts. Air South left Tampa and $500,000 in bills last summer. Before that, it left St. Petersburg with unpaid bills.
The airline has cleaned house of its top executives - twice.
Since landing in Norfolk in June, Air South has infused $600,000 into the local economy in salaries, airport fees and advertising, Crosby said. At least 35,000 passengers have boarded Air South planes in Norfolk.
``This is not the first time an airline has not kept current,'' Shank said. ``I would not want to single out Air South.'' ILLUSTRATION: [Color Photo]
PHOTO COURTESY THE (COLUMBIA, S.C.) STATE by CNB