AAR Awarded $51 Million Aircraft Maintenance and Logistics Support Services Contract for U.S. Marshals Service Prisoner Transport Aircraft
November 30, 2018
WOOD DALE, Illinois, November30, 2018 — AAR (NYSE: AIR) announces the U.S. Marshals Service (USMS) has awarded the global aviation services provider a five-year contract to perform full maintenance and logistical support services for its Boeing 737 series aircraft owned and operated by the Justice Prisoner and Alien Transportation System (JPATS) in Oklahoma City, Okla. The agreement is valued at $51 million.
AAR will provide labor, supplies, tools, materials and equipment in support of the large aircraft at the USMS facility located at Will Rogers World Airport in Oklahoma City. This effort will be supported by AAR’s Oklahoma City repair station. Additionally, the contract includes full maintenance and logistics support services for another Boeing 737 series aircraft located at the McCarran International Airport in Las Vegas, Nev. AAR has been supporting the government agency as either a prime or a subcontractor performing aircraft maintenance, FBO services, supply chain and depot services for more than three decades.
"AAR is proud to expand our trusted partnership with the U.S. Marshals Service,” said Stan Mayer, General Manager of AAR’s Oklahoma MRO. “AAR delivers mission-tailored services and capabilities based on commercial best practices that result in quality work and cost savings for the customer.”
AAR will begin offering full support on December 1, 2018.
The USMS/JPATS manages the coordination, scheduling and secure handling of prisoners in federal custody, transporting them to detention facilities, courts and correctional institutions across the 94 judicial districts via a network of aircraft, buses, vans and cars. JPATS is the largest transporter of prisoners in the United States, supporting the federal judiciary, the Federal Bureau of Prisons and U.S. Marshals district offices.
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, 2018. 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.