AAR Expands Support of Boeing’s U.S. Army CH-47 Helicopter Recapitalization Program
May 21, 2014
AAR repair facility to overhaul components on the Boeing CH-47 Chinook helicopter
GARDEN CITY, New York, May 21, 2014 – AAR (NYSE: AIR) has won a contract that expands its component repair support of The Boeing Company’s Helicopter Recapitalization Program for the U.S. Army. Under a five-year general terms agreement on Multi Year II, AAR will overhaul multiple components on the CH-47 Chinook helicopter. This is a significant increase over AAR’s portion of Boeing’s initial Multi Year I program.
The work is being performed at AAR Aircraft Component Services in Garden City, N.Y., which already has received more than 300 units from Boeing’s facility in Ridley Park, Pa., near Philadelphia. The first repaired and overhauled units have already shipped back to Boeing.
Boeing’s Recapitalization Program breathes new life into old U.S. Army CH-47 helicopters. As part of this program, the airframe is discarded and the components are harvested and sent out for repair and overhaul. The refurbished parts are put into a new airframe along with other modern upgrades.
“Boeing tried AAR and appreciated our performance and the cost savings we provided, which led to this expansion,” said Glenn Meyers, Vice President, Military Programs, for AAR. “The recapitalization program is important to our nation’s security and our military’s effectiveness, which AAR is always proud to support.”
The CH-47 helicopter is viewed as critical to supporting our troops, logistics and humanitarian relief efforts for military operations around the world. Recapitalization has saved the U.S. government hundreds of millions of dollars.
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.