AAR Extends Supply Chain Solutions into New Product Line Via Agreement with ASL Aviation Holdings
April 11, 2017
Acquiring ACLAS ATR parts inventory to support multi-year PBH contract for ASL airlines
WOOD DALE, Ill., April 11, 2017 - AAR (NYSE: AIR) announces it has been awarded a multi-year component support contract from ASL Aviation Holdings. The new contract for power-by-the-hour support for ASL Group's airlines includes component support and repair for approximately 100 passenger and cargo aircraft, including ATR aircraft. AAR will support the contract with inventory purchased from ASL subsidiary ACLAS Global, which will be incorporated into AAR's existing global supply chain network located in Brussels, Hannover and Singapore. A new ATR team will be based in the UK to serve ATR customer parts requirements globally. The ATR is a leading regional aircraft with more than 1,300 delivered to operators across the globe.
"This new award, along with the acquisition of the ACLAS ATR inventory, allows our industry-leading supply chain business to expand its reach into the ATR market," said John Holmes, AAR Chief Operating Officer of Aviation Services.
"By aggregating PBH support for ASL Group airlines under one provider, we can streamline our maintenance, create efficiencies and focus on operations," said ASL Aviation Holdings Chief Executive Hugh Flynn. "AAR was a good fit because of their global component support structure that will provide the same level of service across all our bases and line stations."
About ASL Aviation Holdings
ASL Aviation Holdings, formerly ASL Aviation Group, currently has operations during every year on all 7 continents and has 2,500 staff from 51 nationalities in 20 countries. A global leader in the provision of ACMI services to the express freight integrator and postal industries, ASL also operates passenger flights on an ACMI basis and under its own brands. The Group has 6 airlines in Europe and both passenger and cargo airlines in South Africa and Asia including the world's largest fleet of commercial Hercules aircraft operating humanitarian services for the United Nations World Food programme and the International Red Cross. Further information at www.aslaviationholdings.com.
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, 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.