Trading, leasing and parts solutions provider Contrail Aviation Support, a business unit of Air T, has announced what it is calling record operating results for its fiscal year 2019 ended March 31, 2019.
According to its latest filing, Air T commercial aircraft, engines and parts segment contributed $94 million of revenues in the fiscal year compared to $29.5 million in its prior fiscal year, an increase of 218%.
Overall FY 2019 revenues for Air T were $250 million, a 28% increase over its prior fiscal year. The primary driver of the segment’s increase in revenues was Contrail experiencing record levels of sales, driven by the sales of nine engines totalling $41 million.
Contrail’s CEO Joe Kuhn, said: “As a team, Contrail achieved record revenue growth this past fiscal year, driven by 26 key asset transactions and a strong pipeline of CFM56 / V2500 engine parts. Our positive results are due to the hard work of our valued employees as well as the continued support of our long-established airline relationships. Going forward, we’re excited about the future opportunities of Contrail, as we see the global aviation asset market opening up with more favourable pricing opportunities. With our strong access to capital, we are well-positioned to exploit these opportunities.”
During the period, Contrail acquired two A319-100 aircraft powered by V2500-A5 engines subject to stub-lease from a major global lessor. The remaining lease term has been optimised to create an end-of-life scenario at lease expiry, which will result in a mix of part-out and follow-on lease engines for the company’s parts business and lease portfolio.
Contrail acquired two 737-700 aircraft, each equipped with two CFM56-7B22 engines from a major global lessor. The airframes were torn down by JetYard, and the airframe material was subsequently sold by AirCo. All engines were delivered in serviceable condition.
Contrail acquired one A320-200 aircraft equipped with a V2500-A5 engine from a major US-based private equity fund. The airframe was sold, and one of the engines will be leased to an existing airline customer in Asia.
Contrail acquired two run-out CFM56-7B engines from an aircraft and engine asset specialist. The dismantled components will support the growth of Contrail’s surplus engine parts line of business.
The firm acquired one run-out CFM56-3C1 engine from a European engine specialist company. The engine will be dismantled and the material will be used to support our customers.