AAR Expands PBH Footprint in Europe
May 10, 2016
Volotea signs with global supply chain leader to provide nose-to-tail support for its A319 fleet
WOOD DALE, Illinois, May 10, 2016 – AAR (NYSE: AIR), a leading provider of aviation aftermarket services to the world’s airlines, announces the expansion of its power-by-the-hour (PBH) component inventory management and repair program in Europe. AAR signed a long-term contract with Volotea to support its new fleet of A319s.
AAR will manage the aircraft supply chain through its global warehouse network with a primary parts pool in Brussels, as well as a home-base kit with the customer. The agreement includes management of the complete component repair cycle. Volotea will also have access to the entire AAR pool of inventory through exchanges and procurement. The full PBH program will grow to a fleet of more than 50 A319 aircraft.
Volotea serves 70-plus cities and is focused on connecting small and midsize European cities with non-stop direct flights at very competitive prices.
“Just as Volotea caters to individual passengers’ unique needs, AAR is nimble enough to cater to Volotea’s unique component needs at a price that allows them to remain competitive,” said Deepak Sharma, President, AAR International Supply Chain.
“We are pleased to have partnered with AAR and look forward to their support as we begin to phase in our first A319. Our continuous growth and switch to a new fleet required us to find a solid partner, and we believe we have that with AAR,” said Alex Clerc, Chief of Cost and Ops Performance for Volotea.
“This agreement is a testament to our strategic focus on Europe and our new PBH program management team’s efforts to raise the visibility of AAR’s supply chain network and capabilities in the region,” said John Holmes, Chief Operating Officer, AAR Aviation Services. “I am excited to expand AAR’s European footprint.”
Volotea, the airline of small and midsize European cities, offers direct flights at attractive prices. Its fleet is currently composed of 19 Boeing 717 with a configuration of 125 seats and will incorporate four Airbus A319 by the end of May 2016. Both models are recognized for their comfort and reliability, with Volotea offering reclining seats that are 5 percent wider than the average and approximately 30 inches of separation between each row. In 2016, the company will operate more than 38,000 flights across its 196 routes, which connect 72 small and midsize cities in 13 countries: France, Italy, Spain, Germany, Greece, The Czech Republic, Croatia, Israel, Albania, Moldova, Portugal, Malta and UK. Since its creation in April 2012, Volotea has transported more than 7 million passengers across Europe and in 2016 expects to transport more than 3.4 million.
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 email@example.com 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, 2015. 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.