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Press release

January 09, 2004

Alaska Airlines Awards AAR Exclusive Maintenance Support Contract

WOOD DALE, Ill., /PRNewswire-FirstCall/ -- AAR (NYSE: AIR) announced today that Alaska Airlines has selected AAR to be the sole external provider of heavy-maintenance services for its MD80 aircraft. This five-year exclusive contract extends an original one-year support agreement awarded to AAR in 2002.

For the past year, AAR has supplemented Alaska Airlines maintenance operations by performing a variety of heavy maintenance services. The contract is a continuation of this strategy and will help enable Alaska Airlines to keep pace with it's recently announced increase in passenger traffic. Under the terms of the agreement, AAR will perform heavy maintenance functions such as letter checks, modifications, aircraft upgrades and exterior and interior refurbishment services on select Alaska Airlines narrow-body aircraft through its Oklahoma-based Aircraft Services division.

''Our team is proud and excited that Alaska Airlines has extended their contract for five more years,'' said Don Ward, President and General Manager of AAR Aircraft Services. ''We've clearly demonstrated that we add strategic value to their maintenance program. We're honored to partner with a world- class company like Alaska Airlines and we look forward to helping them maintain their fleet and grow their business.''

AAR Aircraft Services is a world-class provider of aircraft maintenance, modification and refurbishment services designed to help its customers compete in today's changing airline environment by lowering their operating costs, improving reliability and ensuring passenger safety. AAR provides both heavy and line maintenance, aircraft refurbishment, modifications and upgrades to the world's leading operators of major, regional, cargo and military fleets. Its facility in Oklahoma City, Okla., has more than 300,000 square feet in seven hangers to support five narrow-body maintenance lines, as well as regional aircraft.

With a fleet of 109 aircraft, Alaska Airlines is the nation's ninth- largest carrier. Alaska Airlines is recognized for providing a superior level of customer service and pioneering technologies that improve on-time performance and expand safety margins.

AAR is the leading provider of aftermarket support to the worldwide aviation/aerospace industry. Products and services include customized inventory management and logistics programs encompassing supply, repair and manufacture of spare parts and systems. Headquartered in Wood Dale, Ill., AAR serves commercial and government aircraft fleet operators and independent service customers throughout the world. Further information can be found at

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. 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 7, entitled "Factors Which May Affect Future Results", included in the Company's May 31, 2003 Form 10-K. 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 publicly release the result of any revisions that may be made to 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.


CONTACT: Chris Mason, Director of Corporate Communications for AAR, +1-630-227-2062,

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