Item 1.01 Entry into a Material Definitive Agreement

On January 22, 2020, Contrail Aviation Leasing, LLC ("CAL"), a wholly-owned subsidiary of Contrail Aviation Support, LLC ("CAS"), a 79%-owned subsidiary Air T, Inc. (the "Company"), entered into two purchase agreements to acquire: (a) one Boeing 737-700 with serial number 30074 equipped with two CFM56-7B22 engines with serial numbers 890244 and 874445; and (b) one Boeing 737-700 with serial number 30075 equipped with two CFM56-7B22 engines with serial numbers 891281 and 874791. The total transaction value upon closing of both aircraft will exceed $15,000,000.*

On January 27, 2020, CAL entered into an engine sale agreement to sell one CFM56-7B22 engine with serial number 889727, which CAL previously leased. The transaction value upon closing will exceed $5,000,000.*

The purchases of the two aircraft and sale of an engine as discussed above continues Contrail's business of purchasing aircraft and/or aircraft engines for the purpose of leasing or disassembling them and selling them for parts.

The purchase and sale agreements with respect to the transactions are filed as Exhibit 10.1, Exhibit 10.2 and Exhibit 10.6, which are incorporated herein by reference.

*Portions of the transaction exhibits have been omitted for confidential treatment.

To the extent responsive, the information included in Item 2.03 is incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

On June 24, 2019, CAS entered into that First Amendment to Supplement #2 to Master Loan Agreement (the "First Amendment") with Old National Bank ("ONB"). The material changes within the First Amendment are: (a) the extension of the revolving note maturity date from May 5, 2019 to September 5, 2021; and (b) the addition of a quarterly non-usage fee of 0.075% of the daily amount by which the face amount of the revolving note exceeds the principal amount of revolving loans then outstanding.

On January 24, 2020, CAS entered into that Second Amendment to Supplement #2 to Master Loan Agreement with ONB (the "Second Amendment"). The material changes within the Second Amendment are: (a) the increase in the interest rate from the LIBOR rate plus 3.00% per annum to the LIBOR rate plus 3.45%; and (b) the increase in the quarterly non-usage fee from 0.075% to 0.250% of the daily amount by which the face amount of the revolving note exceeds the principal amount of revolving loans then outstanding.

In connection with the Second Amendment, CAS entered into that Second Amended and Restated Promissory Note Revolving Note in the principal amount of $40,000,000 to ONB (the "Amended Revolving Note"). The material changes within the Amended Revolving Note are: (a) the increase in the principal amount of the note from $20,000,000 to $40,000,000; (b) the increase in the interest rate from the LIBOR rate plus 3.00% per annum to the LIBOR rate plus 3.45% per annum.

The foregoing summary of the terms of the First Amendment, Second Amendment, and Amended Revolving Note do not purport to be complete and is qualified in its entirety by reference to the documents which are filed as Exhibits 10.3, 10.4, and 10.5 respectively hereto and are incorporated by reference herein.

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Item 9.01 Financial Statements and Exhibits



10.1     Purchase Agreement, dated January 22, 2020 by and between Xiamen Lufu
       Aircraft Leasing Co., Ltd. and Contrail Aviation Leasing, LLC (MSN
       30074).*



10.2     Purchase Agreement, dated January 22, 2020 by and between Xiamen Lufu
       Aircraft Leasing Co., Ltd. and Contrail Aviation Leasing, LLC (MSN
       30075).*



10.3     Form of First Amendment to Supplement #2 to Master Loan Agreement, dated
       June 24, 2019 by and between Contrail Aviation Support, LLC and Old
       National Bank.



10.4     Form of Second Amendment to Supplement #2 to Master Loan Agreement,
       dated January 24, 2020 by and between Contrail Aviation Support, LLC and
       Old National Bank.



10.5     Form of Second Amended and Restated Promissory Note Revolving Note,
       dated January 24, 2020 in the principal amount of $40,000,000 to Old
       National Bank.



10.6     Engine Sale and Purchase Agreement, dated January 27, 2020 by and
       between Contrail Aviation Leasing, LLC and ALF V LLC.

*Portions of the transaction exhibit have been omitted for confidential treatment.

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