AAR to Distribute Defense Parts for UTC Aerospace Systems
April 6, 2016
Inventory to support Japanese military aircraft in Japan
WOOD DALE, Illinois, April 6, 2016 – AAR (NYSE: AIR), among the world’s leading providers of aftermarket aircraft parts and inventory support, as well as new OEM components, has entered into an agreement with UTC Aerospace Systems, one of the world’s largest suppliers of technologically advanced aerospace and defense products, to manage distribution requirements and to stock inventory of defense parts in support of Japanese military aircraft In Japan.
For AAR, the multi-year distribution agreement covers environmental and engine controls, electric systems, and actuation and propeller systems that support military aircraft platforms including F-15, AWACS, E-2C and C-130. This agreement represents a significant expansion of AAR’s relationship with UTC Aerospace Systems, as well as its parts and inventory support of foreign military customers from its global supply chain. The deal builds upon AAR’s existing business in the Japanese military segment. In recent years, AAR has been selected as the exclusive supplier of Auxiliary Power Unit (APU) and Jet Fuel Starter (JFS) parts and accessories for certain military aircraft operating in the region.
“Our number one priority is delighting our customers and meeting their needs as effectively as possible with the best aftermarket solutions and service,’’said Ajay Agrawal, UTC Aerospace Systems Vice President of Aftermarket. “We are pleased to work with AAR to help meet the critical needs of the Japanese military segment.”
“As an independent provider of aviation aftermarket services, relationships with OEMs like UTC Aerospace have become important to our growth strategy and expands the value operators receive as part of our aftermarket support solutions,” said John Holmes, Chief Operating Officer, AAR Aviation Services.
AAR serves customers in more than 100 countries from sales and service locations in Singapore, Japan, China, Abu Dhabi and Australia, as well as the U.S., UK, France and Germany, so customers get the right part at the right time.
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.