AAR Reaches 60-Year Milestone in Aviation
August 25, 2015
Diverse portfolio & entrepreneurial culture allowed independent service provider to grow despite industry turbulence
WOOD DALE, Illinois, August 25, 2015 – AAR (NYSE: AIR) announces it has reached a significant milestone – 60 years in the aviation industry. On this date in 1955, AAR’s founder Ira A. Eichner incorporated his start-up aircraft radio and equipment supply business in downtown Chicago. What began as a one-man operation is now an industry-leading provider of aviation services to commercial airlines, OEMs and governments around the world, with global headquarters located near O’Hare International Airport and more than 5,000 employees in 20 countries.
Much of the company’s strength and stability is related to consistent leadership with only two CEOs since the company’s inception: Eichner and his successor, David P. Storch. From the beginning, they have created a culture of innovation and execution with an intense focus on quality and safety of flight.
AAR’s parts supply business, which expanded internationally in 1965, now maintains one of the industry’s most extensive inventories of airframe and engine parts worldwide. AAR also pioneered the development of a supply chain business that offers custom solutions ranging from individual components to integrated rotable and consumable inventory and repair management programs. It is one of the largest providers of power-by-the-hour component support with more than 700 aircraft under contract.
Since entering the commercial and military aircraft maintenance market in the late ‘80s, AAR’s 1MRO network has grown to the third largest in the world with five facilities in North America and was recently named Best Airframe MRO in the World by ATE&M magazine.
The Company further diversified into the government and defense sectors by offering similar MRO and supply chain solutions. AAR also became a leading supplier of expeditionary services to the U.S. military, its allies and the United Nations by providing rapid deployment shelters, command centers and airlift services.
AAR prides itself on doing things right and was named as one of Forbes’ 100 Most Trustworthy Companies in America in 2014. As a middle-market company with a strong balance sheet, AAR is now in the unique position of being big enough to design large-scale solutions but small enough to insure the speed and flexibility to meet customers’ needs.
"From the beginning, with Ira’s focus on the niche aircraft radio industry and building a culture of quality and safety, AAR has excelled at innovating and executing to deliver operational and financial efficiencies for our customers around the world," Storch said. "We are focused on our industry-leading aviation solutions that allow our customers to do what they do best – better connect the world. We’re proud of our 60-year history and look forward to continuing to do things right for many decades to come."
AAR is celebrating its 60th anniversary with employee and customer events around the world at MRO Americas, Paris Air Show and Singapore Air Show, to name a few.
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, 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.