AAR Awarded 10-Year Search & Rescue Contract in the Falkland Islands by UK MOD
January 19, 2015
Company leveraging its defense experience and diversifying its Airlift operations
WOOD DALE, Illinois, January 19, 2015 – AAR (NYSE: AIR) announces its Airlift division has been awarded a contract by the United Kingdom Ministry of Defence for Search & Rescue (SAR) and Support Helicopter services in the Falkland Islands. The contract is valued at approximately $275 million (approximately £180 million).
AAR Airlift, together with British International Helicopters (BIH) and Air Rescue Systems (ARS), will provide a combined SAR and Support Helicopter service to the British Forces South Atlantic Islands (BFSAI) operations. The program will include AgustaWestland AW-189 SAR helicopters, Sikorsky S-61 support helicopters, flight operations, maintenance, logistics and facilities support at the Mount Pleasant Complex in the Falkland Islands and surrounding maritime region.
The mission includes all-weather SAR, helicopter emergency medical services, rescue hoist operations, passenger and cargo transfers, and night vision imaging systems. Readiness states vary from 15 minutes to 60 minutes response and require a 24/7/365 alert posture. Performance on the 10-year contract will begin in April 2016.
“This award presents a tremendous opportunity for AAR Airlift’s business as part of our strategy to diversify our capabilities and customer base,” said Randy J. Martinez, President & CEO, AAR Airlift Group. “We are thrilled that our exemplary record of safety, reliability and operational performance has earned us the confidence of the UK Ministry of Defence to deliver this critical service.”
Ian Craddock, Head of Helicopters 2 in the MOD’s Defence Equipment and Support department, said: “I have every confidence that AAR Airlift has the capability and experience to provide a search and rescue service that maintains the high standards set by the Royal Air Force, who we must thank for the service they have delivered to date.
“We will work closely with AAR through the period of transition, with the RAF continuing to provide search and rescue cover until the new service starts. I am also pleased that AAR will be sub-contracting British International Helicopters, who is already successfully providing support helicopter services in the Falkland Islands, to support delivery of the combined service.”
AAR Airlift provides expeditionary airlift services in support of contingency operations worldwide. The Company provides passenger and cargo transport, aeromedical services, night vision operations, search and rescue (SAR), airdrop and other special mission services. AAR Airlift’s fleet of fixed-wing and rotary-wing aircraft serves defense customers in Afghanistan, Africa, the Mediterranean, Indian Ocean and the Western Pacific.
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, 2014. 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.