At first glance, nothing seemed extraordinary. The numbers were large, but airlines were expensive businesses. Aircraft required constant inspection, qualified maintenance personnel, replacement parts, training, fuel, insurance, and countless other expenses that passengers rarely considered when buying a ticket.
Then Maya pointed toward two columns.
“These figures came from the operating reports Northstar gave us in June. These came from an updated schedule last week.”
I compared them.
“Different classifications?”
“That's what I thought.”
She sat opposite me.
“But the explanations aren't consistent.”
I read the notes.
Some expenses appeared in maintenance accounts during one reporting period and capital improvement accounts in another. Certain projected costs had been deferred. A few transactions involved companies whose services were described in unusually broad terms.
Nothing alone established wrongdoing.
But the combination bothered me.
“Have we asked for reconciliations?”
“Three times.”
“And?”
Maya opened another page.
“They provided summaries. Not the underlying detail we requested.”
I leaned backward.
“Who controls the reporting?”
She looked at her notes.
“The chief financial officer signs the consolidated certifications. But the schedules we're questioning appear to have passed through the office of the executive vice president for strategic operations.”
I frowned.
“Who is that?”
“Leonard Pike.”
I recognized the name.
Pike was forty-nine, a former management consultant who had joined Northstar several years earlier. His reputation was mixed. Some people described him as brilliant at restructuring businesses. Others considered him unnecessarily secretive and overly focused on short-term financial appearances.
He had helped develop the airline's expansion presentation.
He also had significant influence over the information provided to prospective lenders.
I looked toward Maya.
“Have we met him?”
“Twice. Briefly.”
“Impression?”
She considered the question.
“Very polished.”
I smiled faintly.
“That isn't an answer.”
She looked directly at me.
“His presentations are excellent. His answers to detailed questions are less impressive.”
I nodded.
That was an answer.
We requested another meeting.
This time, I attended personally.
Pike appeared on the video conference wearing an immaculate navy-blue suit with his hair combed perfectly backward. Behind him stood a wall of framed aircraft photographs and company awards.
He smiled warmly.
“Adrian. Wonderful to see you again.”
“Likewise.”
We exchanged a few minutes of polite conversation.
Then Maya opened the financial schedules.
She asked about the maintenance classifications.
Pike explained that Northstar had adopted a more efficient accounting presentation as part of its expansion planning.
Maya asked for the supporting reconciliation.