America’s Most Corrupt “Airline” Has A New Plane & Business Plan

America’s Most Corrupt “Airline” Has A New Plane & Business Plan

14

In 2014 I first wrote about Baltia Air Lines, which is America’s oldest startup airline. They’ve been in “business” for over 25 years, except they’ve never actually flown a commercial flight, despite having owned a 747-200 for over 20 years (which they finally dumped earlier this year, after hiring a consultant who told them it might not be the ideal plane with which to launch an airline — who would’ve thought?!).

Baltic-Air-Lines

Their business plan was to initially fly between New York and St. Petersburg, Russia, with plans to later expand to other European capitals. For years Baltia has been pretending that they’re actually going to start flying some day soon. Bizarrely enough, some people actually believed it, as the airline had a market cap of $70 million in 2014.

Finally earlier this year the SEC filed charges against one of Baltia’s executives, who was accused of misleading investors.

After this shakeup, the airline came up with a new business plan. Rather than flying a 747 between New York and Eastern Europe, they’d instead become a regional airline within the United States, and fly between BALtimore, Trenton, Islip, and Albany.

Well, it looks like Baltia has a new business plan yet again. I guess they took the advice from their “consultant” to heart, as Baltia Air Lines has now signed a letter of intent to lease a Boeing 767-300 from Kalitta Air. Here’s what Baltia’s president had to say about this development:

Baltia Air Lines President & CFO, Mr. Anthony D. Koulouris stated “I am very happy and pleased with this latest accomplishment as we embark on a new era. As we continue to move forward with my vision and plan of transforming our company, we are also in the process of re-starting the FAA Air Carrier Certification program.” Mr. Koulouris also stated “Our re-structuring and re-branding continues as we strengthen our team as well as our current and new alliances.”

Baltia’s “chief pilot” had the following to say:

Capt. D. E. Kramer, Baltia’s Chief Pilot has extensive command experience on the Boeing 767, having operated scheduled air carrier service between New York (KJFK), London (EGLL), and on to New Delhi (VIDP), made the following statement “The Boeing 767-300ER is an outstanding choice of aircraft to operate between North America and Europe, and even to continue on to the Middle East region.” Capt. Kramer also stated that “over the years this aircraft has proven a high degree of dispatch reliability, along with an available pool of flight crew members to adequately support the operation. The aircraft is also based from and flown throughout most regions of the world, thereby enhancing the technical support of most any proposed operation.”

Here’s what Baltia’s chief of operations had to say:

Baltia’s Chief of Operations, Ms. Sheryle Milligan stated “we are all excited about the new culture and strategies being implemented throughout the company. Utilizing the expertise and experience of our Executive Management Team has allowed us the opportunity to make changes that will prepare us not only for the completion of our Air Carrier Certification project but for future growth within the aviation industry. The input provided by our Executive Team which includes our 119 Managers and Members of the Board of Directors was instrumental in making the decision to move forward with the Boeing 767 aircraft. We are very fortunate to have a forward thinking executive team that has a demonstrated faith in our success which includes a strong commitment to our shareholders and employees.”

The company’s new business plan will be unveiled at their next shareholder meeting, the date of which will be announced “sometime in January 2017.” In practice I suspect the next shareholder meeting will happen around the same time that the airline starts selling tickets for their first flight. 😉

If you want something to do on this Saturday, visit Baltia’s Facebook page. It’s shocking to see how many shareholders there are wondering why the airline isn’t moving forward faster, or what’s going on. You’d think they would have gotten the hint if they did any research, and realized that the airline has had a plane for over 20 years, yet haven’t operated a commercial flight.

I’m not sure whether to think that the people who invested in Baltia deserve to lose their money, or just feel bad for them for not having more common sense.

(Tip of the hat to @davislewis14)

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  1. Greg Hurley Guest

    On December 20, 2016, the PCAOB busted accountant John Scrudato in connection with his audit of Baltia for SEC filings. This is the third accountant that has been busted for substantially the same conduct in connection with Baltia. When is the SEC going to put an end to this?

    Patrick Rodgers
    https://pcaobus.org/Enforcement/Decisions/Documents/2014_Rodgers.pdf

    Michael F. Cronin
    https://pcaobus.org/Enforcement/Decisions/Documents/05142013_Cronin.pdf

    John Scrudato
    https://pcaobus.org/Enforcement/Decisions/Documents/105-2016-054-Scrudato.pdf

    On December 20, 2016, the PCAOB busted accountant John Scrudato in connection with his audit of Baltia for SEC filings. This is the third accountant that has been busted for substantially the same conduct in connection with Baltia. When is the SEC going to put an end to this?

    Patrick Rodgers
    https://pcaobus.org/Enforcement/Decisions/Documents/2014_Rodgers.pdf

    Michael F. Cronin
    https://pcaobus.org/Enforcement/Decisions/Documents/05142013_Cronin.pdf

    John Scrudato
    https://pcaobus.org/Enforcement/Decisions/Documents/105-2016-054-Scrudato.pdf

  2. Ross New Member

    From 2014 - yet the words ring like it was spoken on the stump during this year's election. Far Superior. Incredible.

    Ron says:
    August 12, 2014 at 9:21 am
    From an interview five (!) years ago: “First class has only twelve seats,” explains [VP of Finance[ Clare. “It’s sort of a gimmick because we want to show that we have that kind of service available. Even though service will be superior throughout the...

    From 2014 - yet the words ring like it was spoken on the stump during this year's election. Far Superior. Incredible.

    Ron says:
    August 12, 2014 at 9:21 am
    From an interview five (!) years ago: “First class has only twelve seats,” explains [VP of Finance[ Clare. “It’s sort of a gimmick because we want to show that we have that kind of service available. Even though service will be superior throughout the entire aircraft, first class service will really be far superior. The entire upper deck… will be dedicated as a first class lounge, with a bar and gourmet chefs, live entertainment, strictly for the first class passengers… If the [first class] seats get filled, great; if not, it’s there to show that Baltia Air Lines has that kind of service.” The airline is hiring “stewards” from “fine restaurants, not flight attendants who work for other airlines that have bad habits. The experience will be incredible… like the grand old ocean liners.”

    Found at http://theairlineblog.blogspot.com/2009/08/baltia-air-lines-20-year-old-startup.html

  3. AlexS Diamond

    Charter and smaller airlines are notorious for scams. I've had the (mis)fortune of cleaning up after some of them. Interestingly, the most recent one I worked on was related to 3 other Ponzi schemes our office has worked on in the past decade. I couldn't believe my eyes when I saw the Related Parties search pull all 4 cases together. Only one of the other cases involved a supposed airline. The other two were completely...

    Charter and smaller airlines are notorious for scams. I've had the (mis)fortune of cleaning up after some of them. Interestingly, the most recent one I worked on was related to 3 other Ponzi schemes our office has worked on in the past decade. I couldn't believe my eyes when I saw the Related Parties search pull all 4 cases together. Only one of the other cases involved a supposed airline. The other two were completely unrelated in industries, but were scams nonetheless.

  4. Sice Diamond

    @helfie - I agree...and not only do they have 119 managers but those managers are all part of the Executive Team!

    How do I join this company!

  5. John Drago Guest

    I am irate at the pack of lies in your article. You will be hearing from each and everyone of my 119 lawyers.

  6. Jordan Member

    Oh great, now how am I supposed to get from my morning meeting in Trenton to my afternoon conference in Islip???

  7. Dennis Guest

    Maybe they can join force with Avatar Airlines....another perpetual "startup"

  8. Davis Guest

    Thanks for the hat tip!

  9. Andy Guest

    "Their business plan was to initially fly between New York and St. Petersburg, Russia, with plans to later expand to other European capitals."

    Wait, isn't Russia's capital Moscow?

  10. MattJ Member

    I think we only really care what type of seating they have in F and J?! Lucky, are you able to find out with a review? Even if the plane sits in a hangar. Just try to get on their plane for an experience and write about it for a few hours! Think we're all keen on that!

  11. MEOW Guest

    Judging from the Facebook comments it looks like the posters are some of finest students at America's most prestigious community colleges.

  12. Helfie Guest

    they have 119 managers??? to manage what??

  13. Hugh B Member

    I really think that inserting yourself into the NYC to London route may not have been the smartest decision ever. Well it's still better than the Baltimore-Islip-Albany flight but, just a bit. @Lucky I hope that you'll be on the inaugural flight and run their FFP (best in the world)

  14. raksiam Diamond

    I like the bit about "current and new alliances" and the rest which makes it sound like a real airline that's just making some changes to their current operation.

Featured Comments Most helpful comments ( as chosen by the OMAAT community ).

The comments on this page have not been provided, reviewed, approved or otherwise endorsed by any advertiser, and it is not an advertiser's responsibility to ensure posts and/or questions are answered.

Greg Hurley Guest

On December 20, 2016, the PCAOB busted accountant John Scrudato in connection with his audit of Baltia for SEC filings. This is the third accountant that has been busted for substantially the same conduct in connection with Baltia. When is the SEC going to put an end to this? Patrick Rodgers https://pcaobus.org/Enforcement/Decisions/Documents/2014_Rodgers.pdf Michael F. Cronin https://pcaobus.org/Enforcement/Decisions/Documents/05142013_Cronin.pdf John Scrudato https://pcaobus.org/Enforcement/Decisions/Documents/105-2016-054-Scrudato.pdf

0
Ross New Member

From 2014 - yet the words ring like it was spoken on the stump during this year's election. Far Superior. Incredible. Ron says: August 12, 2014 at 9:21 am From an interview five (!) years ago: “First class has only twelve seats,” explains [VP of Finance[ Clare. “It’s sort of a gimmick because we want to show that we have that kind of service available. Even though service will be superior throughout the entire aircraft, first class service will really be far superior. The entire upper deck… will be dedicated as a first class lounge, with a bar and gourmet chefs, live entertainment, strictly for the first class passengers… If the [first class] seats get filled, great; if not, it’s there to show that Baltia Air Lines has that kind of service.” The airline is hiring “stewards” from “fine restaurants, not flight attendants who work for other airlines that have bad habits. The experience will be incredible… like the grand old ocean liners.” Found at http://theairlineblog.blogspot.com/2009/08/baltia-air-lines-20-year-old-startup.html

0
AlexS Diamond

Charter and smaller airlines are notorious for scams. I've had the (mis)fortune of cleaning up after some of them. Interestingly, the most recent one I worked on was related to 3 other Ponzi schemes our office has worked on in the past decade. I couldn't believe my eyes when I saw the Related Parties search pull all 4 cases together. Only one of the other cases involved a supposed airline. The other two were completely unrelated in industries, but were scams nonetheless.

0
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