Lawyer Named as Trustee to Oversee Airport Coach Co. : Courts: The firm, which ferries passengers between airports and county hotels, has filed for Chapter 11.

A federal bankruptcy judge on Friday appointed a trustee to oversee Airport Coach Co., which ferries 200 to 500 passengers a day between John Wayne Airport and hotels in Anaheim and Buena Park.

Charles Allee, chairman of Airport Coach, said his firm--which is being reorganized under Chapter 11 federal bankruptcy laws--will continue to operate without any interruption in service. He said the firm also carries about 1,200 passengers a day between Los Angeles International Airport and hotels in Anaheim and Pasadena.

Attorney Theodor C. Albert of Newport Beach, the trustee named to oversee the company, could not be reached for comment.

The Board of Supervisors awarded an exclusive franchise last fall to Airport Coach, also known as Ground Systems Inc., even though county staff knew the firm had initiated Chapter 11 proceedings, airport officials said Friday.

They said the firm had operated flawlessly at the airport for years and was current on its payments. Also, they said Airport Coach had substantially outbid its rival, Airport Cruiser, formerly known as Lounge Car Tours Inc., which also had financial problems.

Airport Coach offered to pay the county a minimum airport-use fee of $5,948 a month compared to Airport Cruiser’s $4,000, according to airport spokeswoman Pat Ware.

The California Highway Patrol inspected Airport Coach’s buses on Sept. 20 and pulled 12 of 17 buses out of service for brake and steering violations. The CHP said the problems were corrected and the firm’s license was not suspended.

Airport officials also said Friday that bankruptcy laws would prevent them from terminating Airport Coach’s franchise since the firm is honoring its contract.

“Currently, Airport Coach has satisfactorily met all the financial and service requirements of their license agreement with John Wayne Airport,” airport manager Jan Mittermeier said Friday. “We are reviewing the latest action by the bankruptcy court to assure the public of continuity of bus services at the airport.”

Supervisor Thomas F. Riley said Friday he would ask county staffers to brief him on the situation but does not believe any changes will be necessary in the near future.

“I had no doubts about the firm because they were serving us faithfully, without any problems,” Riley said.

Allee said his firm suffered financial losses during the Gulf War and the recent recession, but turned a profit in December. About 40% of the firm’s business is generated through travel agents and and other third-parties, he said, who have fallen behind on payments to Airport Coach.

He said a new infusion of cash is expected in the next few days by way of a loan from some of the company’s stockholders.

Spokespersons for several Anaheim hotels said they had no comment on the bankruptcy proceedings.