WOOD DALE, ILLINOIS, January 30, 2001 - AAR (NYSE: AIR) announced today that the Company's airframe parts division, AAR Allen Aircraft, has signed a consignment agreement with Southwest Airlines. Under the three-year agreement, AAR will be responsible for managing, marketing and selling Southwest's spare 737-200 airframe rotables and surplus avionics inventory.

"We are pleased that Southwest Airlines has selected AAR to sell selected excess material", said Oscar McSpadden, AAR Allen Aircraft President and General Manager. Southwest operates 346 aircraft providing service to 59 cities in 29 states throughout the United States.

AAR Allen Aircraft offers a vast inventory of new and refurbished airframe parts for virtually every commercial aircraft type in use worldwide. By combining the capabilities of AAR's inventory supply, parts repair, and aircraft maintenance facilities, AAR Allen Aircraft offers cost-effective, one-stop shopping.

AAR (NYSE: AIR) is the preeminent provider of products and value-added services to the worldwide aerospace/aviation industry. Products and services include proprietary inventory management and logistic support services, encompassing supply, repair and manufacture of spare parts and systems. Headquartered in Wood Dale, Illinois, AAR serves commercial and government aircraft fleet operators and independent service customers throughout the world. Further information can be found at  www.aarcorp.com