Profile: Air T Inc (AIRT.O)
10 Mar 2014
Air T, Inc., incorporated on November 17, 1980, operates wholly owned subsidiaries in three industry segments. The overnight air cargo segment consists of its Mountain Air Cargo, Inc. (MAC) and CSA Air, Inc. (CSA) subsidiaries, operates in the air express delivery services industry. The ground equipment sales segment consists of its Global Ground Support, LLC (GGS) subsidiary, manufactures and provides mobile deicers and other specialized equipment products to passenger and cargo airlines, airports, the military and industrial customers. The ground support services segment consists of its Global Aviation Services, LLC (GAS) subsidiary, provides ground support equipment maintenance and facilities maintenance services to domestic airlines and aviation service providers. During the fiscal year ended March 31, 2013 (fiscal 2013), the Company's overnight air cargo segment accounted for 48% of the Company's consolidated revenues, the ground equipment sales segment accounted for 39% of consolidated revenues and the ground support services segment accounted for 13% of consolidated revenues. The Company's overnight air cargo services are provided primarily to one customer, FedEx Corporation (FedEx).
Overnight Air Cargo Services
MAC and CSA provide small package overnight airfreight delivery services on a contract basis throughout the eastern half of the United States and the Caribbean. MAC and CSA's revenues are derived principally pursuant to dry-lease service contracts with FedEx. Under the dry-lease service contracts, FedEx leases its aircraft to MAC and CSA for a nominal amount and pays a monthly administrative fee to MAC and CSA to operate the aircraft. Under these contracts, all direct costs related to the operation of the aircraft (including fuel, outside maintenance, landing fees and pilot costs) are passed through to FedEx without markup. As of March 31, 2013, MAC and CSA had an aggregate of 85 aircraft under agreements with FedEx. During fiscal 2013, MAC's routes were primarily in the southeastern United States and the Caribbean and CSA's routes were primarily in the upper Midwest region of the United States. MAC and CSA operate under separate aviation certifications. MAC and CSA, together, operated the FedEx-owned cargo aircraft as of March 31, 2013, The Cessna Caravan 208B aircraft and The ATR-42 and ATR-72 aircraft.
Aircraft Deicer and Other Specialized Industrial Equipment Products
GGS is located in Olathe, Kansas and manufactures, sells and services aircraft ground support and other specialized equipment sold to domestic and international passenger and cargo airlines, ground handling companies, the United States Air Force (USAF), airports and industrial customers. GGS's product line include additional models of aircraft deicers, scissor-type lifts, military and civilian decontamination units, flight-line tow tractors, glycol recovery vehicles and other specialized types of equipment. During fiscal 2013, sales of deicing equipment accounted for approximately 58% of GGS's revenues.
In the manufacture of its ground service equipment, GGS assembles components acquired from third-party suppliers. Components are readily available from a number of different suppliers. The primary components for mobile deicing equipment are the chassis (which is a commercial medium or heavy-duty truck), fluid storage tanks, a boom system, fluid delivery system and heating equipment. GGS manufactures five basic models of mobile deicing equipment with capacities ranging from 700 to 2,800 gallons. GGS also offers fixed-pedestal-mounted deicers. GGS also manufactures five models of scissor-lift equipment, for catering, cabin service and maintenance service of aircraft, and has developed a line of decontamination equipment, flight-line tow tractors, glycol recovery vehicles and other special purpose mobile equipment.
Ground Support Equipment and Airport Facility Maintenance Services
GAS operates the aircraft ground support equipment and airport facility maintenance services business of the Company. GAS provides aircraft ground support equipment and airport facility maintenance services to a range of customers throughout the country. A key component of the GAS business has been a three-year contract with Delta Airlines. Approximately 18% of GAS's revenue during fiscal 2013, was derived from services under contract with Delta Airlines. Approximately 37% of GAS's revenue during fiscal 2013, was derived from services under contract with LSG Sky Chefs.
Air T Inc
3524 Airport Road
MAIDEN NC 28650