AAR Defense Leader Gives Industry Keynote Speech at AIA Conference on Military Product Support
May 6, 2014
WOOD DALE, Illinois, May 6, 2014 – Lt. General Donald Wetekam, USAF Retired and Senior Vice President of AAR CORP., (NYSE: AIR) gave an Industry Keynote speech today on the factors driving high sustainment costs within the Department of Defense (DoD) at the Aerospace Industries Association (AIA) Product Support Conference in Clearwater, Florida.
The AIA spring conference is focused on the topic of helping DoD meet current budget challenges by exploring approaches to quickly and effectively lower defense costs while preserving the technological advantage of U.S. warfighters. AIA and its member companies have consistently developed strategies and practices to support strong, affordable military readiness, which is directly tied to maintaining force structure.
In his address, Wetekam suggested that DoD adopt more of the best practices used in the commercial aerospace industry to reduce costs. As a senior team member at AAR Corp, a global commercial aviation and defense contractor, Wetekam is very familiar with the robust commercial aftermarket industry that has resulted in more competitive pricing.
“The current DoD budget challenges make this the right time to re-examine the status quo and benefit from lessons learned in the commercial aviation sector,” said Wetekam. “The commercial airlines have been safely and effectively using FAA-certified aftermarket and overhauled parts for years and most now outsource the majority of their heavy maintenance, repair and overhaul work. In fact, there is currently excess capacity at commercial MRO facilities in the U.S. that would yield some attractive pricing.”
In addition to MRO and Aviation Supply Chain services and products, AAR also serves military and government customers around the globe with specialized mobility products, inventory management of medical supplies, cargo systems, aircraft sales and leasing, aerospace structures and even expeditionary airlift service.
AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the Chicago area, AAR supports commercial and government customers through two operating segments: Aviation Services and Expeditionary Services. AAR’s Aviation Services include Parts Supply; OEM Solutions; Integrated Solutions; and Maintenance, Repair and Overhaul (MRO) Services. AAR’s Expeditionary Services include Mobility Systems operations. Additional information can be found at www.aarcorp.com.
Media contact: Daniela Pietsch, Vice President Corporate Marketing & Communications, at firstname.lastname@example.org or +1 630-227-5100.
This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, including, but not limited to,statements regarding the agreement to establish The Module Factory,AAR’s estimate that it will manage the teardown, repair, marketing and sales of spare parts of FTAI’s CFM56 engine pool totaling over 200 engines and growing, AAR’s ability to leverage its extensive USM capabilities to offer CFM56 serviceable engine material to the global commercial aviation aftermarket, that the partnership positions AAR well to service the growing demand for USM on a leading engine platform as customers increasingly prioritize more cost-efficient solutions, and the belief that serviceable engine products, combined with FTAI’s proprietary products and partnerships, completes its unique suite of CFM56 aftermarket offerings aimed at delivering the lowest cost per cycle solution to airline customers. Forward-looking statements may also be identified because they contain words such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘continue,’’ ‘‘could,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘intend,’’ ‘‘likely,’’ ‘‘may,’’ ‘‘might,’’ ‘‘plan,’’ ‘‘potential,’’ ‘‘predict,’’ ‘‘project,’’ ‘‘seek,’’ ‘‘should,’’ ‘‘target,’’ ‘‘will,’’ ‘‘would,’’ or similar expressions and the negatives of those terms. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled “Risk Factors”, included in the Company’s Form 10-K for the fiscal year ended May 31, 2013. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company’s control. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR’s filings with the Securities and Exchange Commission.