THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, October 16, 1996 TAG: 9610160388
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY DEBBIE MESSINA, STAFF WRITER
DATELINE: NORFOLK LENGTH: 41 lines
Air South has not brought its account current, but the low-fare airline has paid $8,000 toward back rent and fees to Norfolk International Airport, an airport official said Tuesday.
Air South still owes $24,000 to the airport, according to Wayne E. Shank, the airport's deputy executive director.
Until Monday, the Columbia, S.C.,-based carrier had paid one month's rent in the four months it has been flying out of Norfolk.
Air South delivered $8,000 on Monday, as was promised last week when the debt became public.
With Monday's payment, Air South officials consider its account satisfied, as it typically pays bills 30 to 60 days after they're due. The remaining $24,000 balance represents charges accrued within the last 60 days.
It is not unusual for an airline to have a 60-day lag in making payments, industry experts said.
``We would like to have it all,'' Shank said of the debt. ``It's our position that the money is due. We don't do 30 to 60 days in arrears.
``But in the real world, we don't always get our money on time,'' he said.
Air South's Thomas J. Volz, marketing vice president, said the 2-year-old airline has been struggling to overcome a rocky start. Previous top executives mismanaged the company, continually tinkered with service routes and amassed large debts.
``This is a company that wants and needs to grow,'' said Volz, adding that Norfolk plays into its plans to expand. The airline expects to add two to three airplanes to it's fleet of seven early next year.
Air South has three daily flights departing Norfolk: two to New York's JFK International Airport and one to Charleston, S.C.
``I feel Air South is making the effort,'' Shank said. ``It's one of those deals we will just have to stay on top of. We will try to be reasonable.'' ILLUSTRATION: FILE
[Color Photo] by CNB