AAR to Provide PBH Support to IBEX, Regional Feeder for ANA Airlines
February 2, 2016
Global aftermarket leader expands inventory management and exchange program to Asia
OSAKA, Japan, February 2, 2016 – AAR, a leading provider of aviation aftermarket services to the world’s airlines, announces it recently expanded its power-by-the-hour (PBH) parts inventory management and exchange program to Asia. AAR signed its first PBH contract with IBEX Airlines in support of its CRJ aircraft.
AAR will manage the aircraft supply chain from an extensive CRJ parts inventory through its global warehouse network. The agreement includes management of the complete component repair cycle at a firm fixed price. IBEX will also have access to the AAR pool of inventory through exchanges and procurement. The program began with two CRJ200 aircraft and will expand to nine in the coming months, including seven CRJ700 aircraft.
The custom program is designed to quickly provide access to the AAR network while delivering a guaranteed service to IBEX to increase dispatch reliability through a dependable supply chain. AAR’s team is at the ready 24/7 offering AOG service 365 days a year. AAR can make the parts available on short notice given its substantial inventory for CRJ 200 and 700 series aircraft to support its regional customers in North America such as Mesa Air Group and Jazz Air.
“Our global sales offices have been working hard to inform the region’s airlines about AAR’s extensive PBH program offerings and the advantages of working with an established but nimble supply chain innovator,” said Ken Hein, Senior Vice President of Supply Chain. “Given the rapid growth of Asia’s aviation market, PBH programs allow airlines to outsource capital costs and parts management so they can focus on operations and passengers.”
Other efforts to expand AAR’s presence in Asia include a memorandum of understanding recently signed with Korea Aerospace Industries, the largest original equipment manufacturer (OEM) and MRO provider for military aerospace customers in Korea, to work together to establish a commercial aircraft MRO facility in South Korea.
AAR will showcase its broad capabilities for commercial and government customers during the Singapore Air Show February 16-21 (Booth No. S01).
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, 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.