Access to Secure, State-of-the-Art Facilities Strategically Located in Brunswick, ME
We have access to hangar space in Brunswick, Maine which provides facilities for aircraft production support for our customers. The secure hangar facilities, with access to secure, compartmentalized information facilities, are strategically located on the Eastern seaboard, an area with a highly skilled labor force well suited to work on large structures in interior spaces, given the region’s experience with shipbuilding. This location affords us the ability to more cost effectively accommodate systems integration requests internationally. The air station maintains runways and taxiways certified for B-747, A-340, and C-5 aircraft, which will allow us to provide systems integration and modification services on wide body aircraft.
Business Model Provides High Risk-Adjusted Returns
Our business model allows us to achieve monthly lease rate factors ranging from 1.3% to 2.5%, compared to typical commercial monthly lease rate factors of less than 1.0%. The experience and track record of management in this market allow for attractive pricing, as risks are well understood and adequately mitigated. We seek to employ conservative leverage, secured by modified aircraft assets under contract with end users, to be backed by cash flows that can support both interest payments and future investment in the business.
Meaningful Marketing and Cross-Selling Opportunities within Targeted Customer Base
Our strategy of providing turnkey and customized design, engineering, modification and integration services and operations solutions that support aircraft critical mission requirements helps position us to meet other aviation needs of our customers. For example, we expect to be able to procure or broker an underutilized and undervalued asset for a customer and develop the engineering and perform the modifications required to repurpose the aircraft. Once complete, we may sell or lease the repurposed aircraft to the end customer. Ideally, we will modify an aircraft for an operationally specific purpose, after which the customer will hire us to assist in an operational capacity. Cross-selling opportunities such as these should allow us to maintain and expand business with existing customers as well as procure new customers.
Growth Strategy
Re-enter the Market for Turnkey Solutions for Government Customers
Our CEO, Mr. Terry, has previously run, grown and sold two companies that provided turnkey commercial aviation services for government customers, namely Flight International and Orion Air Group Services (“Orion”). Upon the sale of Orion, which was founded by Mr. Terry, he entered into a non-compete agreement which has expired. Our management and employees retain extensive relationships in the previously restricted market.
Continued Additions of Complementary Capabilities
We plan to opportunistically add related capabilities within target end-markets, including through acquisitions.
Capitalize on Demand for Special Mission Modifications and Aircraft Leasing Solutions
The majority of our aircraft will be modified and equipped to perform C4ISR missions, logistics and training support for U.S. government contractors and commercial customers. We expect to maintain our competitive advantage of offering a contract leasing model for aviation assets due to continued downward pressure on acquisition and procurement budgets. The DoD and other U.S. government customers have found contract leasing solutions to be a more nimble procurement method than large aircraft acquisitions.
