Pan Am Airways Owes MidAmerica Airport $115,000
No Actions Yet Taken Against Overdue Debt
BELLEVILLE, IL (July 20, 2001) -- Rick Hargrove, the director of MidAmerica St. Louis Airport, said he isn't concerned about the fact that Pan American Airways owes the airport $115,000, of which $81,000 is at least 120 days overdue.
"It's not uncommon to have an airline owe an airport money," he said. "I'm not really that concerned."
The money Pan Am owes the airport is for expenses it incurs there, including landing fees, cabin cleaning, ramp service, fuel, and other items.
The airline's debt was discussed Thursday morning at the St. Clair County Public Building Commission meeting. No punitive action will be taken against the airline yet. Hargrove said the airline will be contacted to find out when payment can be expected.
"It's time that we communicate with them," Hargrove said.
Pan Am officials could not be reached for comment Thursday.
At the same meeting where Pan Am's debt was discussed, the building commission agreed to expand the airport's budget so more fuel could be purchased and then sold to Pan Am and operators of any other planes using the airport. The airport does make a profit on fuel sales, and Hargrove said this action was needed because of how well the airport is doing in fuel sales. The commission also approved a $6,000 addition to the budget so the airport can be represented at an air cargo trade show in Miami.
Pan Am's debt at MidAmerica Airport is considerably larger than at two other airports the airline serves.
An official at the Orlando Sanford Airport in Florida said Pan Am has no outstanding payments there. Bryant Garrett, the vice president of finance for the airport, one of two destinations Pan Am serves from MidAmerica Airport, said he is surprised by Pan Am's debt at MidAmerica, and the fact that part of it has gone uncollected for 120 days.
"We would never let a debt go that far," he said, adding that any tenant at that airport would usually face eviction for not having paid a debt in 120 days. He said debts get his "full attention" when not paid after 60 days and if debts are still owed after 90 days, an attorney for the airport would get involved.
There is another airport where Pan Am owes back payments. George Doughty, executive director of Lehigh Valley International Airport in Allentown, Pa., said the airline has a debt of about $28,000, which is between 30 and 60 days past due. But Doughty said it is typical for airlines to occasionally let bills lapse for a short period of time, and isn't concerned about Pan Am's debt.
"We don't see anything here that's a problem -- but we're going to watch it, of course," Doughty said. "We start getting excited at 90 days."
At both the Orlando Sanford and Lehigh Valley airports, Pan Am is not the only commercial airline operating. However, at MidAmerica Airport, it is the only airline offering scheduled flights.
Officials at the Gary-Chicago Airport in northwest Indiana and the Pease International Tradeport in Portsmouth, N.H., could not be reached Thursday for the status of Pan Am's bills.
Information provided by the Belleville News-Democrat
David Van Den Berg Article © Belleville News-Democrat
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