BACKGROUND:
When STRATAGEM client Jet Logistics began dialogue with renowned Boston area hospital air medical transport consortium Boston MedFlight several years ago, STRATAGEM Founder and Principal Eric Giangiordano was retained to project manage the capture/negotiation of the fixed-wing contract between the parties. Subsequently, Giangiordano was also tasked with directing the operational analysis, financial modeling/budget and contract negotiations on behalf of the parties involved for Boston MedFlight: including acquisition of its own fixed-wing Critical Care Transport (CCT) aircraft to compliment the program’s fleet of multiple rotor aircraft.

“Like most clients I’ve worked with, the BMF program was unique in many regards – it was a nationally recognized, high profile program, a 3rd party consortium serving multiple leading Boston, MA-area hospitals and presented the need to completely customize an aircraft to CCT configuration. Additionally the methodology for the acquisition of their own aircraft posed some unique challenges,” stated STRATAGEM Principal Eric Giangiordano. This case provides some excellent insight into the level and detail of work that STRATAGEM does for clients, whether for personal, corporate or operator-related general aviation aircraft needs. It also demonstrates our outstanding and proven ability to successfully navigate even the most unusual or unexpected complications that most aviation clients may encounter.

ANALYSIS:
“Working on behalf of my client, we performed a detailed analysis of the user’s operational requirements, budget and preferences, determining that a King Air turbo-prop aircraft – specifically a later-model B200, was best-suited to their profile,” continued Giangiordano. “Key operational requirements included short-field performance for various outlier airports in their service zone, yet sufficient range/speed to conduct longer range inter-state missions when necessary, and maximum cabin working area for staff, since CCT aircraft are essentially mobile intensive care units. Ultimately, the fixed-wing aircraft becomes their primary asset when either weather minimums and/or range-speed requirements for a mission restricts use of the helicopters. After vetting and developing the client’s project matrix, and comparing to the market and available inventory, a comprehensive marketplace search eventually narrowed until I identified a specific serial number available that reasonably fit our profile.”

ACQUISITION:
The acquisition process itself presented a variety of additional challenges, including some of typical requirements associated with vetting an aircraft’s operational/ownership history during the pre-purchase process. “In this particular case, we knew based upon the history, records and initial visual inspection that the aircraft was in excellent overall condition – and represented by a reputable broker. However, we did encounter several issues that posed material challenges to closing the transaction. We won’t discuss specifics due to client confidentiality, however one was a fairly straightforward technical issue, while another challenge was extraordinarily unique and involved a simple yet crucial records documentation matter. Both of those matters then invoked multiple other 3rd parties in dialogue and negotiations to properly resolve.”

CONTRACTING:
When it came to contract drafting/negotiation/closing amongst the multiple parties – an area of particular experience and expertise for STRATAGEM and Giangiordano, additional challenges abounded. “The biggest challenge contractually was that the aircraft business model had both short and long-term plans, which were then predicated on 2 different aircraft and most notably, a multi-year lease/purchase and management agreement involving 3 different parties. That complex of a model is virtually unheard of, and additionally pre-owned aircraft sellers or their brokers are typically not interested in lease/purchase arrangements. This necessitated the ability to not only work with the clients to develop a viable business plan amongst themselves, but then essentially sell the unique benefits of that particular plan to various 3rd parties including the broker and their client – under terms/conditions that were not just acceptable, but deemed favorable for all involved. Needless to say, it was much easier said than accomplished and certainly the most complicated aircraft acquisition contract development and negotiation I’ve done in recent years.”

“I attribute our success simply to my company’s ability to effective mediate and resolve even the most complicated contract negotiations where most other parties often fail or give up – and reciprocally the ability to secure buy-in and support of the other parties involved towards the common goals defined for all of the parties involved,” stated Giangiordano. “Overall, this was an excellent aircraft, well-maintained and ideally fit for this esteemed client – and we developed very clear/known resolutions for the handful of curveballs thrown us. And that is what drove the commitment to successfully conclude this particular project acquisition. And why our doctrine and mission statement is ‘Strategic Leadership for YOUR Aviation Goals’ – i.e., the client’s, not anyone else involved including our own. In my professional opinion, that’s where most aviation transactions go sideways when someone is subordinating the best interests of a client for their own.”

RESULTS:
Today, that advanced and custom-configured King Air B200 flies critical lifesaving missions for Boston MedFlight (www.bostonmedflight.org) and its consortium of leading Boston area hospitals including:  Beth Israel Deaconess Medical Center, Boston Children’s Hospital, Boston Medical Center, Brigham and Women’s Hospital, Lahey Hospital and Medical Center, Massachusetts General Hospital and Tufts Medical Center. Boston MedFlight and JLI management also relied upon Giangiordano for forward-looking strategic aircraft operational/maintenance budgeting and forecasting reports.

“It was a privilege to get to know and partner with my client and Boston MedFlight managing that fixed-wing contract, program and aircraft acquisition process,” concluded Giangiordano. “Being a small part of the many cogs that intersect to allow those men and women to help save lives in the Boston and New England area every day is a very gratifying example of the kind of exemplary work I pride myself – and STRATAGEM Aviation, on providing each of our customers – and those who depend upon them for safe, efficient private air travel.”