Company
At A Glance
Established in 1980, AIR T, INC. (NASDAQ: AIRT) is an industrious American company with a networked portfolio of powerful businesses, each who operate independently yet interrelatedly.
We seek to invest in dynamic, talented individuals and teams; insightful doers in their business domains. We apply corporate resources to activate growth and overcome challenges — ultimately building great enterprises that flourish by “win-winning” over the long-term.
Currently we are organized by 3 core business segments consisting of 14 businesses that span a variety of industries, employing over 500 team members nationwide.
Our Core Segments
We focus resources to help our partners activate growth and overcome challenges.
Core Values:
- Win-Win: We aim to identify and create solutions that produce the optimal outcome for all stakeholders .
- Clear Perspective: We aim to provide frank assessments that allow us and our partners to recognize and discern opportunities.
- Decisiveness: We act promptly around those things that create the best opportunities for our partners.
- Better: We are committed to being exceptional through passionate learning and continuous improvement.
- Flow: We support our people and partners by encouraging them to find their Flow Zone. People are happiest and most productive in the Flow Zone.
- Integrity: We act with positive intent to accomplish meaningful results through ethical means.
Our Leadership
Our senior leadership works closely together and has ownership in the AIRT stock purchased on the open market. We have a strong track record of success in the asset management business.
Our Operating Priorities
Our “Investor-Operator Partnership” business model aims to drive long-term value creation by:
- Supporting the dynamic leadership and growth within our portfolio of powerful companies, ensuring they are well-capitalized and operate interdependently yet interrelated.
- Diligently allocating our shareholder capital by acquiring the right kind of cash-flow generating businesses.
- Strengthening our balance sheet and cash-generating assets.
- Driving overall improved performance and after-tax cash flow.
- Building edge in the marketplace.
Through our acquisitions and investments, along with our ongoing support of the dynamic leadership at our portfolio of powerful companies, we seek to focus our resources, activate growth and deliver long-term value creation for everyone associated with AIR T, INC.
How We Invest
Our ownership interests are designed to expand, strengthen and diversify the company’s cash earnings power.
As good stewards of shareholder capital, we plan to reinvest in our high-performing businesses by:
- Purchasing commercial aircraft for trading, leasing and part-out.
- Purchasing engine parts inventory.
- Funding deicer builds for Global Ground Support.
We seek to acquire new cash-flow generating businesses by:
- Identifying and acquiring high performing businesses with edge in the marketplace, which either complement our current portfolio or diversify into industries beyond aviation.
We plan to identify great marketable securities or alternative assets by:
- Searching for another committed activist opportunity.
- Investing in distressed and high yield securities.
- Investing in small cap securities.
- Further investing in our current securities portfolio.
We plan to create unique investment products with outside capital partners by:
- Attracting and retaining sophisticated investment professionals and creating space for talented asset managers.
- Offering thoughtful and sustainable products with attractive return profiles.
Responsible Capital Stewardship
Our team seeks to maintain an intense focus on producing meaningful work. We judge ourselves, in part, through the lens of responsible capital stewardship. We are guided by a company mandate to treat shareholder capital with great care while building edge in the marketplace, so that all stakeholder interests are met. We believe deliberately practicing getting better every day is a powerful strategy.
Our History
Established in 1980, Air T made its first investment in Mountain Air Cargo (MAC), a commercial air transport company based in North Carolina. MAC pilots fly cargo across the eastern half of the U.S. as well as some routes to the Caribbean Islands. That same decade, Air T entered into a strategic relationship with FedEx and formed a new company in Michigan called CSA Air (CSA), which helped create an express air cargo feeder system flying routes in the Upper Midwest. Together, MAC and CSA have reliably been two of the now eight FedEx feeders since the beginning of the FedEx feeder system. To support the maintenance departments of this segment and grow its reach, in 2023 Air T acquired Worldwide Aircraft Services an FAA/EASA certified Part 145 Repair Station that provides comprehensive aircraft maintenance services.
In 1997, Air T acquired Global Ground Support Services (GGS), a leading manufacturer of aircraft de-icing equipment. Global Ground Support is also a producer of scissor-lift catering trucks and glycol recovery vehicles. With manufacturing operations in the heartland of Kansas, Air T ships products worldwide. GGS remains a long-time partner to the aviation industry, helping commercial, private, and military aircraft safely get to all the places they need to go.
In 2007, Air T seized upon an opportunity to meet the fast-growing demand for aviation fleet and facilities maintenance services, by allocating some of its capital to establish Minnesota-based Global Aviation Services (GAS), which began servicing Delta Airlines. Under Air T, Global Aviation was one of the fastest-growing aviation maintenance providers in the U.S., servicing at over 70 airports and growing its network from BOS to LAX, from DFW to JFK. In 2019, Air T sold GAS to a strategic buyer.
In July 2016, Air T found new opportunity at a company based just outside Madison, WI, and acquired a majority interest in Contrail Aviation Support, a leading worldwide supplier of surplus and aftermarket commercial jet engine parts. At the get-go, Air T supported Contrail with capital resources to bolster acquisitions, sales, and trading of its product inventory as well as work with management to expand its asset portfolio to include whole engine and aircraft leasing. With the growth of the whole engine and aircraft leasing portfolio, Air T spun Crestone Air Partners out of Contrail in 2022 to focus solely on building an asset management platform with a diverse portfolio of commercial jet aircraft and engines leased to airlines globally.
In the years following the Contrail acquisition, Air T acquired additional aircraft aftermarket companies — Jet Yard (Tucson), AirCo Group (Wichita), Worthington Aviation (St. Paul), Air’Zona Aircraft Services Inc (Kingman, AZ), and Landing Gear Support Services (St. Paul). With each acquisition, Air T was able to add value to operations while creating exit strategies for the acquired company’s owners and career pathways for existing managers. At the same time, Air T created powerful operating synergies and efficiencies within its four aviation asset management business units.
In 2018, we partnered with industry veterans with the goal to create a SaaS product that is modern, sophisticated and allows aviation businesses to focus on their core strengths without having to become IT experts. Ambry Hill Technologies was born. AHT now offers aviation RFQ & Quote automation through it’s VistaQuote product and aviation Enterprise software through VistaSuite.
While Air T’s heritage is in aviation, our acquisitions are a reflection of limited, convex investments we are making to increase our cash flow and EVA per share, as opposed to an exclusive focus on the aviation space. As an opportunity-driven investor, we are not limited to aviation.
In 2017, Air T bought the assets of a printer manufacturer and started Delphax Solutions, Inc. Delphax is a digital inkjet press designer and manufacturer, delivering color presses that produce high-quality output without compromising efficiency or budgets.
In December 2017, Air T purchased the assets of Blue Clay Capital Management. Rebranded as BCCM Advisors, it is an investment manager focused on unearthing fundamentally attractive small and mid-cap opportunities.
With BCCM Advisors, Air T can further expand upon our idea generation capabilities to identify, analyze, develop and execute innovative investment strategies that are aimed at building better financial futures for all our stakeholders.
We seek daily improvements in our investment strategy, operating model and transaction disciplines. We believe this will allow us to leverage our success and drive improved overall performance and after-tax cash flow.
Investor-Operator Partnerships Drive Long-Term Value Creation
Our value proposition to shareholders of AIR T, INC. is best understood as an “Investor-Operator Partnership.” Through our acquisitions and investments, along with our ongoing support of the dynamic individuals and teams at our networked portfolio of powerful companies, we seek to deliver meaningful value for all of our stakeholders.
While we have demonstrated significant progress in this regard, we recognize that continued success of our twin-powered mission requires the hard work and discipline that we work to practice every day in our quest for better.