August 03, 2012
AAR Sources Replacement Engine for U.S. Department of Energy
Provides cost-effective alternative to power Nuclear Security Administration DC-9
WOOD DALE, Illinois – AAR (NYSE: AIR), the primary logistics, supply chain and aircraft support services contractor for the U.S. Department of Energy’s National Nuclear Security Administration (NNSA), will provide the NNSA with a cost-effective replacement engine to power an NNSA DC-9 aircraft.
AAR’s Aircraft Turbine Center operating unit conducted research and identified a pool of potential engines to replace the aircraft’s aging engine before making its final recommendation. The replacement engine is expected to be installed by October of this year and will provide the NNSA with a cost-effective alternative to keeping an aging engine operated by the NNSA operational.
“We helped the NNSA weigh a number of alternatives for overhauling their engine and using a replacement and determined the cost to maintain one of their current engines was prohibitive,” said Donald J. Wetekam, Senior Vice President, Government and Defense Business Development. “Our in-depth experience with aircraft and engines enabled us to add value to the NNSA’s operations and we take great pride in helping the NNSA control costs while managing these national resources cost-effectively and safely.”
In December 2011, AAR entered an agreement with the DOE to provide logistics and aircraft support for the NNSA’s fleet of Boeing 737-400 passenger/cargo (Combi), DC-9 Combi and Learjet aircraft, strengthening AAR’s position as a prime contractor in the global government and defense market. The contract has a one-year base period with four one-year renewal options for a total estimated value of $18.5 million. Work is performed by a dedicated program team managed by AAR’s Aircraft Services division in Oklahoma City.
About NNSA
Established by Congress in 2000, NNSA is a semi-autonomous agency within the U.S. Department of Energy responsible for enhancing national security through the military application of nuclear science. NNSA maintains and enhances the safety, security, reliability and performance of the U.S. nuclear weapons stockpile without nuclear testing; works to reduce global danger from weapons of mass destruction; provides the U.S. Navy with safe and effective nuclear propulsion; and responds to nuclear and radiological emergencies in the U.S. and abroad. Its aircraft are used to provide safe and secure transport of nuclear weapons components, nuclear limited life components and federal agent task forces.
About AAR
AAR is a global aftermarket solutions company that employs more than 6,000 people in over 20 countries. Based in Wood Dale, Illinois, AAR supports commercial aviation and government customers through two operating segments: Aviation Services and Expeditionary Services. AAR’s Aviation Services include inventory management; parts supply; OEM parts distribution; aircraft maintenance, repair and overhaul; engineering services and component repair. AAR’s Expeditionary Services include airlift operations; mobility systems; and command and control centers in support of military and humanitarian missions. More information can be found at www.aarcorp.com.
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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 1A, entitled “Risk Factors”, included in the Company’s Form 10-K for the fiscal year ended May 31, 2018. 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.
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