AAR Signs Component Support Agreement with Viva Colombia and Viva Air Peru
June 7, 2017
Agreement to enhance affiliate airlines’ services and operational efficiencies
WOOD DALE, Illinois, June 7, 2017 – AAR (NYSE: AIR) has expanded its global footprint by signing a multi-year component support agreement with Viva Colombia and Viva Air Peru. AAR will be providing pool support to affiliate airlines within the Viva LatinAmerica group including VivaColombia, Colombia’s first low-cost carrier, and the newly established low-cost carrier Viva Air in Peru. AAR will make inventory available from its facilities in Miami and Chicago, as well as positioning stock in Bogota, Medellin and Lima.
“Our individualized cost-per-flight-hour programs are providing real-time support for our growing clientele all over the world,” said Deepak Sharma, President, International Supply Chain, AAR. “We are excited to add South American airlines to our portfolio of more than 1,300 aircraft under contract.”
“We are proud to allow millions of Latin Americans to take their first airline flight or travel by air more frequently,” said William Shaw, founder and CEO of VivaColombia and Viva Air Peru. “We are excited to begin working with AAR to help continue to provide affordable air travel in the region.”
“This contract is the latest example of how AAR’s flight-hour support programs are a perfect fit for fast-growing airlines in emerging markets, in addition to established carriers in major markets,” said John Holmes, President and Chief Operating Officer, AAR. “We use our capital, buying power and experience in component support on behalf of our partners, so they can focus on cost-effective operations and expansion.”
VivaColombia and Air Peru are part of the Irelandia Aviation group, the world’s premier low-cost airline developer, led by Declan Ryan, one of the founders of Ryanair. Irelandia has successfully developed 6 LCCs around the world, namely Ryanair, Allegiant, Tigerair, Viva Aerobus, VivaColombia and Viva Air Peru, which combined have a fleet of over 420 aircraft and have carried more than 1 billion passengers to date.
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, 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.