AAR Receives FAA Repair Station Certification for New Mexico Facility
Repair station dedicated to servicing U.S. Department of Energy fleet of aircraft
ALBUQUERQUE, New Mexico — AAR (NYSE: AIR) announces it has received FAA Repair Station Certification for a local facility dedicated to maintaining the U.S. Department of Energy’s National Nuclear Security Administration (NNSA) fleet of aircraft. The step enables the NNSA, which serves a vital role in national security, to comply with its specific FAA requirements, and it allows AAR’s Albuquerque team to operate as a freestanding unit, not reliant on the Company’s other repair locations.
AAR has been providing logistics and aircraft support, including repair work, for NNSA’s four-plane fleet since December 2011 under a five-year contract with the DOE estimated at $18.5 million. Last December the DOE received FAA certification for its NNSA operation. In order for the NNSA to be in compliance, AAR’s repair center needed to be FAA certified as well. AAR responded quickly, completing the typically lengthy process in just five months, gaining final approval on February 21.
“We view the issuing of the certification as the cornerstone of our commitment to the NNSA operation,” said AAR Aircraft Services Vice President of Operations David M. Jones, who heads the Albuquerque team. “The professionalism and teamwork of the group here in Albuquerque during the certification process was amazing. I assigned a lot of people here to roles above and beyond their normal duties – creating manuals, developing training programs -- and they all came together to accomplish a common goal.”
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.
The NNSA’s fleet consists of two Boeing 737-400 passenger/cargo (Combi), a DC-9 Combi, and a Learjet. They are housed at DOE’s facility at Kirtland Air Force Base in Albuquerque. AAR has a staff of 26 there, including 14 mechanics and inspectors, exclusively supporting the NNSA fleet.
“One of the things we did in applying for FAA certification is we stressed writing the procedure manual to meet the unique mission requirements,” Jones said. “Most contracted repair centers, the customer brings the airplane in, you do the repair, the customer flies the plane out, and you don’t see it until it comes back for the next repair cycle. In our case, we maintain the same aircraft day in and day out. We are responsible not just for overhauls, but also for the day-to-day maintenance -- even during missions. Every mission that goes out, we send mechanics on board.”
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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