Basta Holdings Corp. (BSTA)

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May 5, 2014 Issue

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Providing Long-Term Leasing, Charter, Maintenance and Overhaul Services for the Aviation Industry

About Basta Holdings Corp. (BSTA)

www.bastaholdings.com
Basta Holdings is an aviation and logistics company that provides various services including the management of ACMI leases of fixed wing and rotary passenger and cargo aircrafts and private business aviation, which includes charter, maintenance, overhaul and FBO development and management as well as various auxiliary services.


Andrew Logullo

Vice President

Andrew Logullo serves as the Vice President of Basta Holdings and is a Registered Financial Consultant and Investment Banker with over 20 years of experience serving as an active investor and advisor in both the equity and debt markets. He began his career working for Merrill Lynch in Century City, CA and has since owned or been the managing partner of several successful US companies. Mr. Logullo has also been an real estate investor for over a decade and has several years of professional management experience that includes a thorough understanding of corporate back office operations. Andrew Logullo is FINRA Series 7 & 63 licensed.

Basta Holdings' management has been highly successful in the aeronautical industry for 10 years and plans to utilize its extensive experience to establish a significant presence in the global emerging markets for heavy helicopter leasing and private aviation services, particularly China. The company already operates in the United States, Latin America, the Caribbean, Europe, and Asia.”- Andrew Logullo


Basta Holdings Corp. (BSTA)
610 SW 34th Street, Building 3
Fort Lauderdale, FL 33315

Phone: 888-959-7095
www.bastaholdings.com


 

 

 

Interview conducted by: Lynn Fosse, Senior Editor, CEOCFO Magazine, Published – May 5, 2014


CEOCFO: Mr. Logullo, would you please provide an overview of Basta Holdings, including its business operations and target markets or industries?
Mr. Logullo:
Basta Holdings provides contract procurement, business development and management services in the aviation and logistics industries and has a management team that has been highly successful in the aeronautical industry for 10 years.

 
Through a contract management agreement, Basta Holdings currently operates in the United States, Latin America, the Caribbean, Europe, and Asia and intends to implement an aggressive growth strategy in the Chinese aviation markets.

 
The company’s primary services include global helicopter and fixed wing ACMI leasing to government and non-government agencies also known as NGO’s, firefighting operators and various S&P 500 companies and other large corporations. An ACMI lease is a turnkey leasing arrangement whereby Basta Holdings provides an aircraft, complete crew, maintenance, and insurance to the entities mentioned above as a broker of air travel for an hourly operation fee.


Through these ACMI leases,
Basta Holdings provides dedicated aircraft and airlift support specializing in serving remote, rugged and hostile regions. The typical contract duration for the company’s ACMI leases is 3 years and requires a minimum of 60 flight hours per month and have an average cost of $5,000 per flight hour.


Some of the operations our company provides ACMI leasing for include cargo and passenger transportation, medevac and air ambulance, emergency evacuation, firefighting, mining, logging and offshore oilrig support, aerial mapping and surveillance, search-and-rescue missions, air ambulance and humanitarian aid.


In addition to providing ACMI leasing services, Basta Holdings is involved in private aviation services industry and has plans to acquire MRO and FBO facilities worldwide, primarily in the US and China.

 
To clarify for our shareholders and potential investors, an MRO is a facility that provides aircraft with Maintenance, Repair and Overhaul services. These facilities essentially serve as a garage or repair shop for large aircraft whereby their operators generate revenue by providing a full range of repair and refurbishing services.

 
Basta plans to purchase 2 MRO’s located in the US in the near future whereby its main revenue source will come from selling large Sikorsky Aircraft that it refurbishes at its MRO facilities for a large profit. The company will also generate revenue from its maintenance and repair services in addition to its refurbishing business.


In addition to MRO’s, Basta Holdings plans to purchase FBO’s as well. An FBO is a fixed-based operator that serves as a hangar facility used to store and refuel aircraft. BSTA will generate revenue from its monthly fees it charges its clients for the use of its FBO facilities.

The company’s management has been highly successful in the aeronautical industry for 10 years and plan to utilize their extensive experience to establish a significant presence in the global emerging markets for heavy helicopter leasing and private aviation services, particularly China. Basta Holdings already operates in the United States, Latin America, the Caribbean, Europe, and Asia.


CEOCFO: Would you please go over some of the company’s recent highlights or news?
 
Mr. Logullo:
On April 10th of this year we
announced that the company has assumed management of revenue-generating contracts in the field of heavy helicopter long-term leasing as well as private business aviation operations. This was through a revenue-sharing agreement with WAB International, which generated $70 million in revenue from its contracts in 2013.

 
Additionally, on April 24th, Basta Holdings announced an agreement with Monarch Air Group to launch commercial operations of one-way private jet charters with operations to commence by mid August. The Company intends to lease an entire fleet of light jets and has already leased the first aircraft to be used in this program.


CEOCFO: Would you explain any current trends in BSTA’s target industry and the company’s competitive advantages that will help it succeed in this market?
Mr. Logullo:
What makes Basta Holdings a unique investment opportunity and positioned for success in the global aviation markets is its expert management team that has several years of experience in the logistics and international aviation projects, working on 4 continents and 8 foreign countries.


One of the most obvious trends is the incredible growth curve that China’s aviation industry will see. Compared to the world average of 3.9 helicopters per 1 million people, China is currently equipped at a ratio of 0.25 helicopters for every 1 million people.

Because of our strong management team, which includes our Director Sophie Xue, who will be spearheading our Chinese expansion efforts, we are poised to take advantage of the huge demand for rotary aircraft in China’s domestic market. In fact, Basta Holdings is already in discussions with some of China’s largest aviation companies.


To elaborate further on the incredible growth being experienced in the Chinese market, consider the fact that China had only 350 civil helicopters in 2013 compared to 10,000 in Europe and 12,000 in the US. With an expected number of around 2,300 helicopters needed in China, the demand is extremely high and we believe Basta Holdings is primarily positioned to capitalize on this.

 
With a client list that includes the Department of Defense, the United Nations, State Department, World Food Organization and other world-class organizations and corporations, Basta Holdings is more than capable to provide the types and quality of aircraft that is China will demand moving forward.

  
CEOCFO: Would you provide us with a brief background and some key highlights of management?
Mr. Logullo:
The Company’s CEO, Dr. Jacob Gitman, holds a PhD and has had extensive experience and success through the aviation industry and has developed and maintained relationships with the Department of State, Department of Defense (DoD and other large non government agencies around the world.


Sophie Xue, as I mentioned earlier, is a board member and Director of Basta Holdings. She has directed, managed or consulted for Endaxi Capital Partners NYC, Desmond Capital Hong Kong, Shanghai Golden Atlas Capital, Chongqing helicopter investment company and Qingdao Free Trade port and has extensive industry experience and relationships that will greatly benefit Basta to enter this rapidly growing market.

CEOCFO: What are some milestones we should look for Basta
Holdings to achieve over the next 12 months?

Mr. Logullo: As I mentioned earlier, Basta Holdings intends to acquire 2 US-based MRO’s within the next 6 months, using proceeds from a $5 million capital raise that the company is on the verge of entering into.


Additionally, Basta Holdings plans to incorporate Basta Holdings in Hong Kong and China,
establishing offices in the free trading zone of Shanghai. The company will also apply for a
CAAC Part 91 and part 145, which are licenses necessary to operate MRO’s and FBO’s
in China. Following the receipt of these licenses, Basta plans to purchase/open/establish one or multiple MRO’s.

 
Also, as recently announced, BSTA has entered into an agreement with Monarch Air Group to launch commercial operations of one-way private jet charters and expects to commence operations by mid August, 2014.

 
The company has already leased the first aircraft to be used in this program, which will be
delivered by May 5th and intends to lease an entire fleet of light jets prior to August.

CEOCFO: Why do you feel Basta Holdings is a good investment?

Mr. Logullo: First and foremost the fact that Basta Holdings has steady multi-million dollar revenues that are guaranteed by contracts with some of the world’s most prominent government and non-government organizations.

 
The company’s current contracted business positions Basta Holdings to bring in over $11 million in revenues without bringing any new business and its only our first year of being public.

Also, Basta Holdings is debt free and expects to remain debt-free throughout our expansion.

As I mentioned earlier, the company intends to enter the Chinese aviation market which is on the verge of tremendous growth and between the industry relationships of our board member, Sophie Xue as well as our experience and ability to successfully deliver this service in the most difficult global environments in the world, we feel that Basta Holdings is in an optimal position to successfully enter this market which would fuel a large increase in revenue and shareholder value.


We estimate that our revenues will grow to $19 million in 2015 and approximately $30 million in 2016. This should be very compelling to potential shareholders because our projections are actually very conservative yet still show 58% annual growth within the next 2 years.

 
Basta Holdings has guaranteed revenue in the form of government contracts and an aggressive growth strategy to establish a significant market presence in the explosive Chinese Aviation market as well as the global FBO and MRO markets.

 

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: The financial projection(s) contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements that relate to the intent, beliefs, plans or expectations of the Company or its management. All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission. The Company will not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

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