Thursday, May 10, 2018

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Startup Stewart airline hits another roadblock

STEWART AIRPORT – Baltia Air Lines, doing business as US Global Airways, has hit another snag in its effort to secure financing and gain FAA approval to operate passenger service from Stewart International Airport.

The company had hoped to gain federal approvals and financing to start service, initially to the Caribbean this past winter, but that did not materialize when a deal to purchase an existing airline and use its FAA operating permit fell through.             

Airline spokesman John Lampl maintains that while the startup process may be taking longer than expected, they are still working on the approvals and financing.

The latest SNAFU involves the Securities and Exchange Commission, which has suspended the airline’s stock trading pending an administrative proceeding.

SEC documents say Baltia “is delinquent in its periodic filings with the commission, having not filed any periodic reports since it filed a Form 10-Q for the period ended March 31, 2016, which reported a net loss of $688,432 for the prior three months.”

The SEC order of suspension states that “On February 27, 2018, a delinquency letter was sent by the Division of Corporate Finance to Baltia Air Lines, Inc. requesting compliance with its periodic filing obligations, and Baltia Air Lines, Inc. received the delinquency latter on March 6, 2018, but failed to cure the delinquencies.”

Lampl told Mid-Hudson News on Wednesday the suspension caught the company “off guard.” He said the freeze was the result of an automatic computer “trigger.”

Lampl said the airline is working with its attorneys to resolve that issue with the SEC, one he equates to a credit card company computer automatically freezing a card when a payment is late. Nevertheless, he said company officials continue to seek funding to start up airline service.

 


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