AAR to Manage Component Repairs, Inventory for UK’s Royal Squadron
May 7, 2015
MoD places contract with exclusive supplier of critical components for BAe146
WOOD DALE, Illinois, May 7, 2015 – AAR (NYSE: AIR) has been selected by the UK Ministry of Defence (UK MoD) as the exclusive manager and single source of all repairs, spare parts and unit exchanges for its fleet of BAe146 aircraft. The two-year agreement includes an additional one-year renewal option and replaces an agreement signed in 2012 establishing AAR as an exclusive supplier.
The RAF fleet of four BAe146 aircraft are operated by 32 (The Royal) Squadron from RAF Northolt. The prime role of the Squadron is to support UK Operations. The secondary role is to provide a flexible and immediately available VVIP service to various UK government customers.
“We are excited to grow our relationship with the UK Ministry of Defence and to provide them with an efficient and cost-effective component repair and procurement program supporting the vital operational roles these aircraft play,” said Andy Murphy, Senior Vice President, Business Development. “With our experience managing sophisticated supply chains and our history of solid execution, we look forward to continuing to build on a mutually beneficial partnership with the Ministry of Defence.”
AAR has extensive experience with supply chain and component repair management for commercial airline and government fleets. The company is part of the Northrop Grumman team supporting the UK MoD Royal Air Force Fleet of E3-D Sentry Airborne Warning and Control System (AWACS) aircraft under its Sentry Whole Life Support Programme. AAR’s Airlift group was recently awarded a contract with the UK MoD for Search & Rescue in the Falkland Islands.
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, 2014. 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.