Air T helps FedEx deliver the goods. The company owns two overnight air cargo subsidiaries -- Mountain Air Cargo (MAC) and CSA Air -- which operate under contracts with FedEx. MAC and CSA Air fly mainly in the Eastern and Midwest regions of the US, as well as the Caribbean and South America. Its combined fleet consists of about 80 turboprop Cessna aircraft, most of which are leased from FedEx. Air Cargo Services accounts for about half of its sales. Air T's Aircraft Ground Service Equipment and Service business comprises Global Ground Support (GGS; de-icing and scissor-lift equipment used at airports) and Global Aviation Services (GAS; provides related maintenance services).
Operations
Air T's subsidiaries include Mountain Air Cargo, CSA Air, Global Ground Support (GGS), and Global Aviation Services (GAS). Its primary operating segments include overnight air cargo (48% of total sales), ground equipment sales (39%), and ground support services (13%).
Sales and Marketing
Air T's overnight air cargo services are provided to one customer: FedEx. Its largest GAS customer is Delta Airlines.
Financial Performance
Air T has enjoyed three straight years of unprecedented growth. Revenues jumped 15% from $89 million in 2011 to $103 million in 2012 -- a historic milestone for the company. Its profits surged by 24% from $1.4 million in 2011 to $1.7 million in 2012.
The revenue growth was attributed to a 44% spike in ground support services and a 26% surge in ground equipment sales (primarily within the military sector). It was also helped by a 3% jump in overnight air cargo segment sales.
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