AAR Receives Extension for Navy Vertical Replenishment Contract
October 26, 2015
Airlift’s third helicopter detachment program extended by Military Sealift Command
WOOD DALE, Illinois, October 26, 2015 – AAR (NYSE: AIR) announces Military Sealift Command (MSC) has exercised a one-year renewal option for its Airlift division to perform vertical replenishment (VERTREP) services for the U.S. Navy’s 5th and 7th Fleets in the Mediterranean Sea, Arabian Gulf and Indian Ocean.
The one-year renewal is valued at approximately $6.7 million. The contract was awarded to AAR Airlift Group in 2014 for an estimated value of $34 million, inclusive of all options. The contract includes the use of two helicopters, personnel, and operational and technical support services. AAR operates a total of six helicopters for the Navy’s commercial VERTREP program.
Military Sealift Command is the leading provider of ocean transportation for the Navy and the U.S. Department of Defense, operating approximately 110 ships daily around the globe. AAR has been performing commercial VERTREP services including ship-to-shore and ship-to-ship vertical replenishment, search and rescue, and support for humanitarian aid operations for MSC since 2007.
"AAR Airlift has provided exceptional service to the U.S. Navy at an excellent value for eight consecutive years," said Steven B. Harrison, President, AAR Airlift Group. "We’re honored to continue providing this critical service for our military personnel."
AAR Airlift provides aviation services in support of expeditionary operations worldwide, including passenger and cargo transport, aeromedical services, night vision operations, aerial delivery, search and rescue, and other special mission services. AAR Airlift’s fleet of fixed-wing and rotary-wing aircraft serves peacekeeping organizations and government customers in Afghanistan, Africa, the Mediterranean, and the Western Pacific and Indian Oceans.
AAR is a global aerospace and defense aftermarket solutions company that employs more than 6,000 people 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 and Composite Manufacturing 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. 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 and the Company's Form 10-Q for the fiscal quarter ended February 29, 2020. 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.