A federal lawsuit alleging a Provo-based airline skimmed nearly $100,000 from the U.S. Department of Transportation is without merit, according to the company's chief executive officer.
"It's stupid," said Eugene Mallette, former president and current chief executive officer of Alpine Aviation Inc.
The suit, filed last week in U.S. District Court, alleges Alpine filed false flight reports with the Department of Transportation's Essential Air Service. The program subsidizes air carriers to serve small communities throughout the nation.
According to the suit, Alpine obtained Essential Air Service contracts in 1996 and 1997 to provide weekly nonstop flights between Moab and Salt Lake City and between Ely, Nev., and Salt Lake City. The contracts required the small airline to fly the Piper Cheyenne Aircraft.
In late 1997, transportation officials learned that Alpine, on 25 percent of its subsidized flights, substituted the Piper Navajo Chieftain, a "lower-priced, slower, noisier, non-pressurized aircraft," the suit states.
But on monthly statements submitted to the government, Alpine reportedly falsely claimed flying the higher-end aircraft. According to government estimates, the false reports resulted in a nearly $98,000 overcharge to the United States.
The Piper Cheyenne costs about $850,000, and the Navajo Chieftain is $250,000, Mallette said.
The suit seeks $5,000 to $10,000 for each of the 58 false claims, plus another three times the actual damages.
The government has already withheld $102,800 from payments to Alpine to recoup part of its loss, according to the suit.
Mallette told the Deseret News his company only flew the Navajo Chieftain when the Cheyenne was grounded for maintenance work, and he had the full permission of the government to do so.
So far the lawsuit has had no negative effect on Alpine Air, which no longer carries people, Mallette said. Two years ago, the company shifted its focus and used its 23 airplanes to transport air cargo. Alpine has been conducting business in Provo since 1972.
"It's just business as normal," he said. "It's just a claim that has absolutely no merit, and we'll defend it and hopefully get our $100,000 back that they owe us."
E-MAIL: awelling@desnews.com