Air T, Inc. operates wholly owned subsidiaries in three industry segments.
The overnight air cargo segment, comprised 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, comprised 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, comprised of its Global Aviation Services, LLC (“GAS”)
subsidiary, provides ground support equipment maintenance and facilities maintenance
services to domestic airlines and aviation service providers.
The principal place of business of the Company and MAC is 3524 Airport Road,
Maiden, North Carolina; the principal place of business of CSA is Iron Mountain,
Michigan, the principal place of business for GGS is Olathe, Kansas and the
principal place of business for GAS is Eagan, Minnesota.
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 in place,
FedEx leased its aircraft to MAC and CSA for a nominal amount and paid 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) were passed through to FedEx without
markup. These agreements with FedEx were renewable on one-year terms and could
be terminated by FedEx any time upon 30 days’ notice.
Global Ground Support designs and engineers its products. Components acquired
from third-party suppliers are used in the assembly of its finished products.
Components are sourced for a diverse supply chain. 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. The price of these components is influenced by raw material costs,
principally high-strength steels and stainless steel. GGS utilizes continuous
improvements and other techniques to improve efficiencies and designs to minimize
product price increases to its customers, to respond to regulatory changes,
such as emission standards, and to incorporate technological improvements to
enhance the efficiency of GGS’s products. Improvements include the development
of single operator mobile deicing units to replace units requiring two operators,
a patented premium deicing blend system and a more efficient forced-air deicing
system.
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.
Each model can be customized as requested by the customer, including single
operator configuration, fire suppressant equipment, open basket or enclosed
cab design, a patented forced-air deicing nozzle and on-board glycol blending
system to substantially reduce glycol usage, color and style of the exterior
finish. 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.
GGS competes primarily on the basis of the quality and reliability of its products,
prompt delivery, service and price. The market for aviation ground service equipment
is highly competitive and directly related to the financial health of the aviation
industry, weather patterns and changes in technology.
1.84 %