AAR Signs European Leisure Operator as PBH Customer
September 29, 2016
Small Planet Airlines chooses industry supply chain leader to support A320/A321 fleet
WOOD DALE, Illinois, September 29, 2016 – AAR (NYSE: AIR), a leading provider of aviation aftermarket services to the world’s airlines, has signed a contract to provide power-by-the-hour (PBH) component inventory management and repair services to Small Planet Airlines’ A320/A321 fleet. The long-term agreement marks the latest extension of AAR’s PBH program and integrated supply chain services across Europe.
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 covers management of the complete component repair cycle for Small Planet’s fleet of 17 Airbus A320s and four Airbus A321s, using AAR’s predictive maintenance analytics. Small Planet also will have access to the entire AAR pool of inventory through digitally optimized exchanges and procurement.
Small Planet is a growing independent leisure airline that partners with major tour operators in Great Britain, Germany, Poland, Lithuania, France and Italy, carrying their passengers to holiday destinations in Europe, the Middle East and Asia.
“As Small Planet moves into new markets, AAR will work behind the scenes to ensure its fleet delivers the safety and reliability that its customers count on at a competitive price,” said Deepak Sharma, President, AAR international supply chain. “AAR’s global warehouse network and digital platforms allow us to minimize aircraft-on-ground time and maintenance costs.”
“This latest contract shows the growing strength of our supply chain services in Europe,” said John Holmes, Chief Operating Officer, AAR Aviation Services. “European airlines led the market in saving money through PBH contracts and are now benefiting from a more competitive supply chain market in the region.”
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.