AAR Awarded 15-Year $909 Million Landing Gear Contract by USAF
March 27, 2017
Company will leverage its broad range of aviation services & facilities across the U.S.
WOOD DALE, Illlinois, March 27, 2017 – AAR (NYSE: AIR) has been awarded a $909,394,297 fixed-price contract from the U.S. Air Force for the Landing Gear Performance-Based Logistics One program. Work expected to be completed by 2032.
“This award is affirmation of AAR’s expertise and leadership position forged over 30 years in managing the repair, maintenance and logistics of landing gear,” said John Holmes, Chief Operating Officer, Aviation Services. “We are very honored to support the U.S. Air Force fleet and the critical missions they perform. We will work tirelessly every day to make them proud of their selection.”
AAR will provide total supply chain management including purchasing, remanufacturing, distribution and inventory control to support all Air Force depot and field-level, foreign military sales, other services, and contractor requisitions received for all C-130, KC-135 and E-3 landing gear parts.
“AAR is a strong fit to serve as prime on this contract because we can utilize our broad range of services and facilities across the country to not only overhaul landing gear for these three fleets but also procure and manage all the parts needed to keep them in service,” said Nicholas Gross, Senior Vice President, Government Supply Chain Solutions.
Repair work will be done at AAR’s landing gear services facility in Miami and inventory supply and management will be handled via AAR offices and warehouses in Wood Dale, Illinois, and Ogden, Utah.
“This contract is another great example of how AAR can apply commercial MRO and supply chain best practices to help the government increase efficiencies and decrease costs,” said David P. Storch, Chairman, President & CEO. “In this time of reduced budgets, government can rely on a trusted partner like AAR that has been providing aviation aftermarket services for more than 60 years.”
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, 2016. 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.