AAR Wins $105 Million Award from U.S. Navy for Contract Logistics Support of C-40A Clipper Aircraft
March 24, 2016
Company will leverage its broad range of services & facilities across the U.S.
WOOD DALE, Illinois, March 24, 2016 – AAR (NYSE: AIR) was awarded a $104,970,967 five-year, fixed-price contract by the Naval Air Systems Command (NAVAIR) for fleet logistics support, including commercial depot support and site support, for the C-40A Clipper aircraft, a derivative of the Boeing 737-700 commercial airliner.
“We are honored by this selection and look forward to providing top-notch service to our U.S. Navy customer,” said John Holmes, Chief Operating Officer, Aviation Services. “This award further cements AAR’s position as a prime logistics sustainment provider in the government and defense marketplace.”
“AAR is a strong fit for this contract because we can utilize our broad range of services and facilities across the country to maintain the airframes from tip to tail,” said Don Wetekam, Senior Vice President, Government & Defense Programs. “And we will be partnering with United Airlines under their Part 121 certificate for technical parts and quality oversight.”
Heavy maintenance work on the C-40A aircraft, the newest commercial derivative medium lift aircraft used for Navy Unique Fleet Essential Airlift missions, will be performed at AAR’s Maintenance, Repair and Overhaul (MRO) facility at the Oklahoma City airport, with logistics being supported at five Naval Air Stations. AAR will also use its landing gear repair facility in Miami and component repair shop in New York to support the Navy fleet. AAR has contracted with Lockheed Martin Commercial Engine Solutions to provide engine repair work.
“This contract is a great example of how AAR can apply commercial aviation supply chain best practices to help the government increase efficiencies and decrease costs,” said David P. Storch, Chairman, President & CEO. “In this time of reduced budgets, government can rely on a trusted partner like AAR that has been providing aviation aftermarket services for more than 60 years.”
AAR is a global aerospace and defense aftermarket solutions company that employs 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 and Composite Manufacturing 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 the estimated contract value. 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 and the Company’s Form 10-Q for the fiscal quarter ended February 29, 2020. 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.