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Press release

February 07, 2018

AAR Announces Joint Venture with Indamer for New MRO Facility in India

WOOD DALE, Illinois, February 8, 2018 – AAR (NYSE: AIR), a global provider of aviation services to commercial airlines, announced a joint venture with Indamer Aviation, a leading aviation company in India, for the development of a new airframe maintenance, repair and overhaul (MRO) facility in Nagpur, India.

The new MRO facility, which is already under construction, will initially be comprised of six narrow-body bays, including one bay for paint. Additional phases are planned for a total of 16 bays, as well as component repair shops.

The MRO will serve India’s fast-growing commercial aviation market and is scheduled to open in the fall with DGCA certification and is currently pursuing FAA and EASA certifications. Fully aligned with the ‘Make In India’ initiative, the facility will employ Indian nationals, including some of the existing Indamer workforce. A training school under Indamer’s CAR 147 certification and the Government of India’s Skill Development Program will allow hundreds of students to gain skill sets and employment in Nagpur. The initial group of students will receive practical training at one of AAR’s MRO facilities in the United States.

“We are excited to expand AAR’s MRO expertise outside of the Americas in partnership with Indamer, which has the local market and cultural knowledge needed for success,” said John Holmes, President & Chief Operating Officer, AAR. “We are looking forward to bringing our MRO experience to central India to help serve the country’s fast-growing airlines.”

“When we started planning for a new MRO in India, we knew we wanted to leverage the experience of a leading, independent MRO that had been successful in more mature aviation markets,” said Rajeev Gupta, Indamer Aviation CEO. “AAR is the ideal partner for us and brings the knowledge and processes needed to help establish in-country capability and jobs in aircraft heavy maintenance.”

“AAR has been embraced by the country’s airlines and supported by the ‘Make In India’ initiative, and we are proud to be part of the next generation of aviation support in this region,” said Rahul Shah, Senior Vice President of AAR.

About Indamer

Founded in 1947, Indamer Aviation Private Limited is one of the leading General Aviation services companies in India. It is approved by the Directorate General of Civil Aviation under CAR 145 and Continuing Airworthiness Management Organization (CAMO) CAR M. The company is an authorized service centre for Bombardier and Embraer fleets. It maintains fixed-wing aircraft and helicopters manufactured by all OEMs in the western world. The company maintains aircraft for Private Owners, Charter Operators, State Governments and Training Institutes. Indamer maintains a total of 90 aircraft at 15 locations across Pan India. Indamermedia contact: Vikram Sethi, Chief Commercial Officer, at vikrams@indamer.com | +91-9821087865.

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.

Media contact: Daniela Pietsch, Vice President Corporate Marketing & Communications, at editor@aarcorp.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. 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.v

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