Business Overview:
The Business for sale is a very profitable regional air carrier offering passenger, mail, and freight services to a wide geographic area in the Pacific Northwest. Revenue for FYE 2010 was posted at $7.04 million, and the recent closure of a major competitor has minimized competition, yielding significant development opportunities. EBITDA for FYE 2010 topped $1.45 million which represented a 20.6% EBITDA margin. Pro-forma projections through 2013 favor revenue growth of 10% each year thereafter. Boasts over 50 years of safe and dedicated service to the local community. Schedules flights to 23 surrounding area, and geographic expansion could easily be achieved by opening new hubs in additional areas. Presently operating in 19 mail markets, the Company expects to qualify for an additional 4 in the near future. Averages approximately 30 flights per day to carry 150 passengers and 7,000 pounds of mail. Currently holding operating leases on all 14 of its Cessna 207 and 172 aircraft. The Company occupies a 7,100 square foot passenger terminal, and a 12,000 square foot hanger; the hanger is available for lease or purchase. Freight service offers an avenue for great potential growth, as there is very limited competition in the market. Marketing efforts have been limited to minimal local advertising and word-of-mouth referrals; increased efforts would immediately accelerate growth over a short period of time.
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Property Features and Assets:
Occupies a 7,100 square foot passenger terminal and operates a 12,000 square foot hanger as a maintenance facility. The hanger is leased from the Company’s owners and is available for sale or long-term lease along with the business. In addition, the Company leases two “crew houses” for pilots and mechanics. For an administration office, the Company leases a 900 square foot office.
Market Competition and Expansion:
The Company’s prospects for future growth are excellent, with opportunities to expand by simply adding more routes and schedules to its current operations, opening new hubs in neighboring cities, adding additional aircraft, pursuing the freight market more aggressively, and by strengthening its marketing programs. By exploiting any of these opportunities, management is confident that revenue growth could easily exceed the projections.
Reason for Selling:
The owners wish to diversify their interests
Additional Details:
- The property is leased.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
Resources: