With its 2007 acquisition of Pittsburgh-based CJ Systems, Air Methods has become the largest civil air ambulance provider in the country. Integrating CJ into Air Methods has proceeded smoothly, so far, said CEO Aaron Todd, but there are challenges ahead.
The combined company now operates a fleet of 350 aircraft, mostly helicopters, in 42 states. It owns an estimated 80 percent of these aircraft. (The remainder are owned by clients and operated by Denver-based Air Methods under service agreements.) The company is also an aggressive purchaser of new aircraft, with more than 138 helicopters on order over the next five years–38 of them scheduled for delivery this year. The majority of these will replace existing helicopters. These orders–mostly for Eurocopters–represent a capital commitment of more than $500 million. Air Methods is the launch customer for the Bell 429 twin, scheduled for initial customer deliveries late this year. CJ operated a fleet of 107 aircraft and had 900 employees. “We are pleased how smoothly the acquisition has gone and with the merging of the workforces. They have come together in a great spirit of cooperation and support,” Todd said. Air Methods acquired the parent company of CJ, FSS Airholdings, for $25 million and the assumption of debt financed with $100 million in term and line-of-credit bank debt.
More In Rotorcraft
