MAIDEN, N.C., Dec. 6, 2016 /PRNewswire/ — Air T, Inc. (NASDAQ: AIRT) today announced that its subsidiary, Global Aviation Services, LLC (Global), has been notified by Delta Air Lines (Delta) that Global had been awarded a five-year contract for 28 locations in connection with Delta’s 2016 ground support equipment (GSE) maintenance RFP process. The total annualized revenue of the new award and services at other Delta locations not part of the 2016 RFP process is anticipated by Global to be approximately $8.1 million, compared with annualized revenue under existing arrangements with Delta of approximately $3.5 million. In the award, Global retained 21 of 22 incumbent locations included in the RFP process and added seven new locations, including the maintenance of the baggage handling system (BHS) and passenger boarding bridges (PBB) for Delta’s hub operation at the Minneapolis-St. Paul (MSP) airport. Based on anticipated timing of the commencement of the terms of the new award, the award is expected to provide approximately $850,000 in net additional maintenance revenue for Global in the fiscal year ending March 31, 2017. Resulting from the award, Global will have over 90 technicians serving Delta in 44 locations.
“This award is recognition of our team’s hard work. We’ve been serving Delta since our inception and are grateful that our relationship continues to grow,” said Brad Osborn, Global’s Chief Executive Officer.
About Air T, Inc.
Established in 1980, Air T, Inc. is a diversified holding company with four core industry segments: overnight air cargo, aviation ground support equipment manufacturing, aviation ground support maintenance services, and commercial jet engines. Our ownership interests consist of a broad set of operating and financial assets that are designed to expand, strengthen and diversify Air T’s cash earnings power. Our goal is to build on Air T’s core businesses, to expand into adjacent industries, and when appropriate, to acquire companies that we believe fit into the Air T family. For more information, visit www.airt.net.
Statements in this press release, which contain more than historical information, may be considered forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), which are subject to risks and uncertainties. Actual results may differ materially from those expressed in the forward-looking statements because of important potential risks and uncertainties, including but not limited to the risk that contracts with major customers will be terminated, that customer requirements for ground support equipment and facilities maintenance services will be less than anticipated, and the timing of the commencement of services under the new award from Delta. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Air T, Inc. is under no obligation, and it expressly disclaims any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Air T, Inc.