AAR Celebrates Completion of 100th Aircraft at Duluth Maintenance Facility
DULUTH, Minnesota – AAR (NYSE: AIR) today announced a maintenance milestone at its Duluth repair station – completion of the 100th aircraft for its customer Air Canada. Today’s event at the maintenance, repair and overhaul (MRO) facility included representatives from aerospace and defense contractor AAR and Air Canada, Mayor Don Ness, and local and state business development groups to celebrate the aircraft’s delivery and the public-private partnerships that have played a key role in revitalizing the state’s aviation sector.
Since re-opening the abandoned 188,000-square-foot hangar in November 2012, AAR has had an annual economic impact on the state of $47 million. Today, AAR Aircraft Services – Duluth supports three lines of aircraft maintenance and 305 jobs.
It was announced at the event that AAR has signed a five-year contract including renewable options with Air Canada to provide aircraft maintenance. The Duluth facility is currently dedicated to the commercial carrier’s narrow-body Airbus fleet, exclusively servicing the A319, A320 and A321 aircraft. AAR is on track to open a fourth line of maintenance in September, creating another 70 positions.
“This achievement is especially meaningful for AAR. Not only is it further confirmation that Duluth was the right choice for us, it also shows that our investment in this facility and this city is paying off,” said Dany Kleiman, Aviation Services Group Vice President – Repair and Engineering. “I want to give a special thanks to the talented men and women on the maintenance lines who helped us get to this point. They have shown the same teamwork and dedication to complete the 100th aircraft as they did with the very first.”
By locating in Duluth, AAR has helped enhance the region’s status as a growing aviation sector. It not only solved the problem of what to do with a long-vacant property but also helps make the case for ongoing investments in Duluth’s aviation infrastructure, which is expected to see significant growth. The Minnesota Department of Employment and Economic Development predicts that aviation manufacturing in Duluth will grow by 40 percent over the next five years.
“AAR is a first rate company and employer, and we are thrilled for their ongoing growth and success. They are a critical aviation partner and their success is a source of community pride,” said Mayor Ness. “The aviation manufacturing sector in Duluth is surging high - thanks in large part to AAR.”
“We knew from the first meeting with AAR that they would be a great fit for our region,” said Brian Hanson, President and CEO of APEX, a business and development engine for northeast Minnesota and northwest Wisconsin. “Our private and public development partners worked hand-in-hand with AAR to support their growth. It is thrilling to see this long-vacant building rejuvenated to house a vibrant workforce. We are very proud to count AAR among our member-investors, and we extend both thanks and congratulations on this significant achievement.”
The repair center operates as part of AAR’s nationwide 1MRO Network, which also includes facilities in Indianapolis, Miami, Oklahoma City, which can accommodate wide-body aircraft. AAR’s 1MRO approach provides customers with access to integrated repair, engineering, IT, parts services and increased flexibility. AAR is the No. 1 provider of MRO services in North America and No. 3 in the world, according to industry rankings.
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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