August 20, 2019 -- Madison, WI -- Contrail Aviation Support, LLC (, a commercial aircraft trading, leasing and parts solutions provider worldwide since 2000 focused on creative asset management strategies that maximize value, today announced record operating results for its fiscal year 2019 ended March 31, 2019, driven in part by nine engine sales totaling $41 million. Total sales for Contrail not disclosed. Contrail is a business unit of Air T, Inc. (NASDAQ: AIRT –, which is organized as a portfolio of powerful business and financial assets.

According to its 10K filing, Air T, Inc’s Commercial Aircraft, Engines and Parts Segment (“Segment”) contributed $94 million of revenues in its fiscal-year ended March 31, 2019, compared to $29.5 million in its prior fiscal year, an increase of 218%. Overall FY 2019 revenues for Air T, Inc. 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 totaling $41.0 million.

Fiscal 2019 Operating Highlights

  • Record levels of sales driven in part by nine engine sales totaling $41 million.
  • Overall key asset transactions totaled a record 26 transactions, spanning acquisitions, leases, and sales of commercial aircraft and jet engine parts
  • Expanded CFM56 / V2500 engine parts sales footprint and approved supplier status at every major shop worldwide

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 favorable pricing opportunities. With our strong access to capital, we are well-positioned to exploit these opportunities.”

Kevin Milligan, Contrail’s Vice President of Corporate Development & Marketing, said: “Our record FY19 success is a reflection of our robust aircraft asset management platform across trading, leasing and engine parts. The global market responded quite favorably to our nimble, full-service approach of being a one-stop-shop for airlines and lessors concerning mid-life and older aircraft. This past fiscal year, we looked at a high-volume number of aircraft deals and yet were able to transact profitability on the right ones in a highly competitive environment. Looking ahead, Contrail will continue to distinguish itself by offering its customers creative solutions and flexible transaction structures that maximize value at scale throughout the aircraft’s lifecycle. We will also continue to develop strong channels to access capital while broadening our global reach.”


8 Key Acquisitions

  • Two A319-100 aircraft subject to lease. 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 optimized 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.
  • Two 737-700 aircraft. 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 (both sister companies of Contrail who are also business units of AIR T, INC.). All engines were delivered in serviceable condition.
  • One A320-200 aircraft. 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.
  • Two CFM56-7B22 engines. 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.
  • One CFM56-3C1 engine. Contrail 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.

6 Key Leases (Added to the Portfolio)

  • Three CFM56-7B26 engines. Contrail leased two engines to a major global MRO and one engine to a prominent European airline.
  • One CFM56-5B1 engine. Contrail leased the engine to a major carrier in Latin America.
  • Two A319-100 aircraft. Contrail added two A319-100 aircraft powered by V2500-A5 engines subject to stub-lease with an Asian carrier.

12 Key Sales

  • Eight CFM56-7B22 engines. Contrail sold three engines to a boutique aviation investor, one engine to a global engine leasing and trading company, one engine to a European based aircraft and engine asset specialist and three engines to a US-based private equity fund.
  • One CFM56-7B26 engine. Contrail sold the engine subject to lease to a major US-based aviation company.
  • Two 737-700 airframes. Contrail sold the airframes to AirCo.
  • One A320-200 airframe. Contrail sold the airframe to a US-based airframe parts company.