AAR wins Parts Supply contract with Mitsubishi Heavy Industries Aero Engines (MHIAEL), largest commercial deal in Japan to date
September 17, 2019
WOOD DALE, Illinois — AAR (NYSE: AIR), a leading provider of aviation services to airlines and governments worldwide, signed its largest commercial deal in Japan to date, a multimillion dollar Parts Supply agreement with Mitsubishi Heavy Industries Aero Engines, Ltd. (MHIAEL). AAR will begin work immediately as the parts supplier for MHIAEL’s PW4000 engine maintenance with international commercial airlines.
“MHIAEL is a key player in the Japanese and global aviation market, and this agreement is AAR’s first Parts Supply deal with an engine MRO company in the region — and our largest contract in Japan,” said Sal Marino, AAR SVP of Parts Supply. “AAR is certified compliant with Japanese regulations, and we have the global capabilities and facilities to serve Japan-based customers wherever they do business. We’re very excited for what’s to come with this partnership and our plans in the Japanese market.”
AAR will supply parts for MHIAEL’s demand of PW4000 94-inch fan engines used in thousands of commercial aircraft and will also have the capability to provide solutions from original equipment manufacturers (OEMs), including Unison and Eaton, for engine technological platforms.
Out of a strong field of vendors competing for the service contract, AAR was chosen by MHIAEL as their preferred parts supplier in this large-scale partnership to serve their international customers.
This announcement follows AAR’s recent completion of its certification from the Japanese Civil Aviation Bureau (JCAB) allowing the company to also serve Japan-based airlines.
For more information about AAR’s Part Supply Services, please click here.
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, 2019. 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.