AAR Wins IDIQ Award from U.S. Army for Aircraft Maintenance And Supply Chain Management
April 17, 2018
10-year hybrid contract valued at up to $25.5 billion
WOOD DALE, Illinois, April 17, 2018 – AAR (NYSE: AIR), a leading provider of aviation services to commercial airlines and governments, has been awarded a 10-year hybrid (cost-plus-fixed-fee and firm-fixed-price), indefinite-delivery/indefinite-quantity (IDIQ) contract by the U.S. Army Contracting Command for aircraft and support equipment maintenance, minor modification and supply chain management. The work will be primarily performed outside the continental U.S. in support of U.S. Army operations.
“We are exceptionally proud to be selected for this award, and our team is honored to have the opportunity to provide world-class support to the Army in the coming years,” said Nicholas Gross, Senior Vice President of Government Programs, AAR. “This award is an important part of AAR’s strategy to grow and diversify our already strong portfolio of international aircraft maintenance and supply chain operations.”
AAR is one of six awardees on the competitively-awarded Worldwide Logistics Support Services – Contractor Logistics Support (WLSS-C) IDIQ contract, which has one five-year base period with one five-year option period, for a total potential value of $25.5 billion.
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, 2017. 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.