Nebraska state auditor to investigate funding of Lincoln airline Red Way

LINCOLN, Neb. (KLKN) – Nebraska State Auditor Mike Foley is set to begin an investigation into the funding of Lincoln’s Red Way airline.

In a letter to David Haring, executive director of the Lincoln Airport Authority, Foley said Friday that the state auditor’s office has received concerns regarding the airline’s funding.

Red Way received $3 million in American Rescue Plan Act funds, made available by the Lincoln City Council and Lancaster County Board of Commissioners.

On Wednesday, the airline announced it would be shutting down due to the “compounding of costs and lack of resources,” less than three months after its first flight.

SEE ALSO: Why did Lincoln airline Red Way fail?

Foley said his office has decided to audit Red Way for the funding it received from the Lincoln Airport Authority.

The state auditor’s office is also investigating the Lincoln Airport Authority’s payments made in relation to the airline’s operations.

John Olsson, the chairman of the Lincoln Airport Authority, released a statement regarding the audit:

“The Lincoln Airport Authority (LAA) announced on Thursday, that we are preparing a comprehensive audit process in relation to the operations of Red Way at the Lincoln Airport. The audit will ensure transparency, compliance and efficiency in all aspects of Red Way’s departure from LNK. Today we received notice from State Auditor Mike Foley that they too will be conducting an audit with respect to Red Way. LAA looks forward to cooperating with the State Auditor, as well as our community partners – the Lancaster County Board and the Lincoln City Council – to coordinate all efforts to ensure a transparent audit process moving forward.”