Aerodynamics

Situation

ADI provides charter flight services and airplane storage and maintenance out of one of the busiest airports in the U.S.

The airline offers a full-line of aviation support including aircraft maintenance, avionics repair, interior refurbishment, international charter and shuttle, flight management, ground support and aircraft brokerage.

The Company was experiencing a significant reduction in revenues and increasing losses in a shrinking economy that significantly affected corporate air travel.

Solution

Amherst developed and provided working models of the Company’s business operations and assisted in development of a business plan that included improved cash management and shifting focus toward remaining profitable business lines.

Amherst served as financial advisor to the Company. When Amherst initiated its engagement with the Company, the business was out of cash and had a substantial over-advance on its line of credit. Amherst worked with the CFO to create weekly budgets and implemented a cash management system. Additionally, the firm worked with the CEO to better strategically position the airline and implement a focused sales process.

Results

Six months into the engagement, the Company was generating positive cash flow, had significantly reduced it’s over-formula position, and was no longer subject to a forbearance agreement. The Company was able to increase its profitability and, over time, moved back into a preferred borrowing status with its lending institution.