Mountain Air Cargo expands with acquisition of Royal Aircraft Services

MINNEAPOLIS - Air T, Inc. (NASDAQ:AIRT), a $50.43 million market cap aviation services company, has announced that its subsidiary, Mountain Air Cargo (MAC), has completed the acquisition of Royal Aircraft Services, a move aimed at bolstering its aircraft maintenance and overhaul services. The transaction, which took place in Hagerstown, MD, is expected to enhance MAC’s operational efficiency and service quality within the aviation industry. According to InvestingPro data, Air T has demonstrated revenue growth of 3.36% over the last twelve months, reaching $298.21 million.

The acquisition allows MAC to integrate Royal Aircraft Services’ expertise and reputation for high-quality aircraft maintenance into its existing network. Royal Aircraft Services will retain its brand and continue its commitment to delivering exceptional aircraft services.

Mike Bandalan, CEO of Mountain Air Cargo, expressed that the acquisition aligns with the company’s mission to improve service quality for partners. He anticipates a seamless integration of Royal’s specialized knowledge, which is anticipated to increase operational capacity in key markets.

Pamela and Austin Heffernan, the former owners of Royal Aircraft Services, also welcomed the partnership with MAC. They believe the transition will strengthen service capabilities and provide enhanced value for customers and stakeholders, ensuring Royal’s continued success under new ownership.

Air T, Inc., established in 1980, is a diverse portfolio of businesses and financial assets, including overnight air cargo, aviation ground support equipment manufacturing and sales, and commercial jet engines and parts. The company focuses on expanding and diversifying its cash flow per share, while aiming to activate growth and overcome challenges across its core businesses. InvestingPro analysis reveals that while the company maintains strong liquidity with a current ratio of 1.9, it operates with a significant debt burden and has not been profitable over the last twelve months. For deeper insights into Air T’s financial health and more exclusive tips, subscribers can access additional analysis on InvestingPro.

Mountain Air Cargo, a leading air cargo service provider and aircraft maintenance solutions company, boasts over four decades of industry expertise and operates a diverse fleet for both domestic and international cargo operations. It maintains FAA and EASA-certified maintenance repair overhaul (MRO) capabilities.

Royal Aircraft Services is known for its comprehensive MRO capabilities and FAA-certified aircraft painting facility, which offers custom painting and refinishing services. It has established itself as a trusted partner in the aviation industry due to its dedication to safety, precision, and customer satisfaction.

For stakeholders with inquiries related to the acquisition or other matters concerning Air T, the company has provided an interactive Q&A platform through Slido.com, accessible from its website. Responses will be provided at the Annual Meeting and in writing on a quarterly basis, though not all questions may be addressed due to legal and pragmatic constraints.

This news article is based on a press release statement from Air T, Inc.

In other recent news, Air T Inc. has made significant financial adjustments to enhance its operational flexibility. The company has secured a new $3 million overline revolving loan from Alerus Financial to address its seasonal borrowing needs, as outlined in a recent SEC filing. This adjustment also includes a revised $14 million revolving credit note and the release of certain co-borrowers, such as AirCo, LLC, from loan obligations. Additionally, Air T Inc. has entered into a new term loan agreement with Bank of America, valued at $2.28 million, involving its subsidiary Mountain Air Cargo, Inc. The loan, maturing in 2030, requires monthly principal and interest payments, with an interest rate fixed at approximately 5.99% through a swap agreement. Proceeds from this loan were used to repay a previous Term Note B with Alerus Financial. The termination of the previous credit arrangement with Alerus and the new loan agreement reflect Air T Inc.’s efforts to manage its capital effectively. These developments are detailed in the company’s recent 8-K filing with the Securities and Exchange Commission.

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