The joint announcement from the companies said North East’s investors, who weren’t identified, provided a “strong cash infusion” to facilitate a Jan. 7 resumption of operations at Land Air, which was closed for more than a week by the Federal Motor Carrier Safety Administration for more than 1,000 violations over a 15-month period. North East President Philip Palker said the investment, which he didn’t quantify, gives North East’s investors a majority of the equity in Land Air.
Palker told Transport Topics that the companies “will gain significant economy of scale by multipurposing of resources” to help both companies. He didn’t give details of how utilization of equipment and other resources will be enhanced.
The joint statement said Land Air “could not have accomplished this turnaround without the support from its community, banking partners, vendors, customers and employees. Going forward, the company has pledged its commitment to continue working with regulatory authorities as well as industry experts to ensure a successful transition and secure future."
Land Air Express, of Williston, Vermont, had about $83 million in revenue in 2014, according to SJ Consulting Group. Palker told TT that North East, of Manchester, New Hampshire, has annual revenue of about $16 million.