AAR Continues to Grow Business and Capabilities with Air New Zealand
November 20, 2017
Companies grow component repair reach and volume through new partnership
WOOD DALE, Illinois, November 20, 2017 – AAR (NYSE: AIR), a global leader in aviation services, has committed to significantly increasing the volume of contracted component repairs with Air New Zealand. In a 10-year agreement, AAR designated Air New Zealand’s component center as its Asia Pacific MRO of choice. This is the latest example of AAR’s commitment to grow and strengthen its partnership with Air New Zealand, the country’s flag carrier airline.
After successfully implementing a long-term repair contract signed in January 2017, AAR and Air New Zealand have moved to another level of component repair collaboration, providing both parties with an opportunity for parallel growth. As AAR’s component support agreement customer base has increased, so has the Company’s need for a more global repair network. And Air New Zealand will benefit from AAR’s relationships with other operators.
“With strong OEM relationships and vast airline operational experience, Air New Zealand’s workshops complement AAR’s workshops in Amsterdam and New York,” said Deepak Sharma, President, AAR Integrated Solutions – Commercial. “AAR’s customers from all corners of the globe are now within easy reach of these strategically positioned repair bases.”
“AAR’s large customer base and growing volume of aircraft under component support contract aligns with our goal to develop and grow our component business, which provides significant support to not only the Air New Zealand fleet but to a number of third-party customers as well,” said Air New Zealand Chief Operations Officer Bruce Parton.
“Both parties share core values throughout their organizations, and this is evident in the way the component agreements were developed,” said John Holmes, President & Chief Operating Officer, AAR. “Collaboration, mutual respect and focus on exceeding customer expectations is readily translated to working together to produce high-quality, highly reliable MRO services at a competitive global market cost.”
Early this year, AAR and Air New Zealand signed a significant agreement that establishes a component inventory and repair partnership with AAR in the growing Asia-Pacific region with an AAA-rated carrier. It also marks AAR’s first PBH agreement solely focused on the B777 aircraft, the flagship carrier and international workhorse connecting New Zealand to the rest of the world.
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, 2017. 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.