AAR to Perform Reconfiguration Services for ATA 737-300/500s

PARIS /PRNewswire-FirstCall/ -- AAR (NYSE: AIR) announced today at the Paris Air Show that ATA Airlines, Inc. has selected AAR to provide reconfiguration services on up to 14 Boeing 737-300/500 aircraft to be acquired by ATA over the next 6-12 months. Work is scheduled to begin in June 2005 and will be performed as the aircraft are acquired.

As ATA acquires aircraft to add to its fleet, AAR will perform the maintenance required to bring the aircraft into compliance with ATA's maintenance program and reconfigure the interior of the aircraft to meet ATA's standards before turning the aircraft over to ATA. AAR Aircraft Services - Indianapolis, an operating unit of AAR, will perform the work at its state-of- the-art maintenance facility located at the Indianapolis International Airport. Once the initial maintenance and reconfiguration services are complete, ATA will manage the future maintenance requirements.

"We would like to welcome ATA as our newest customer," said J. Mark McDonald, Group Vice President for AAR. "We expect to provide value to them by delivering quick turnaround times while maintaining the highest levels of quality and performance. The capabilities of our facility and the skills and talents of our employees enable us to provide a variety of cost-effective solutions as our customers change the composition of their fleets."

AAR Aircraft Services - Indianapolis provides maintenance, repair and overhaul services designed around operational efficiency, reliability and safety. From its Indianapolis-based heavy maintenance facility, AAR's experienced leadership team and highly-trained workforce deliver high-quality, cost-effective aircraft maintenance solutions.

The layout, advanced technology infrastructure and centralized U.S. location of AAR Aircraft Services - Indianapolis are optimized to deliver cost, turnaround and quality advantages to customers whose fleets are serviced there. AAR's highly trained maintenance technicians participate in innovative quality programs that include CASS, ASAP, ATOS and Human Factors. The capabilities of AAR Aircraft Services - Indianapolis, combined with the established operations of AAR Aircraft Services - Oklahoma, strengthens AAR's position as an industry leader in MRO.

AAR is a leading provider of products and value-added services to the worldwide aviation/aerospace industry. Products and services include customized inventory management and logistics programs; maintenance, repair and overhaul of aircraft and aircraft components; engine and aircraft sales and leasing; and the manufacture of cargo systems, composite structures and mobility systems. AAR leverages its 14 FAA certified repair stations to offer customized solutions that seamlessly integrate with customers' existing operations. Headquartered in Wood Dale, Illinois, AAR serves commercial and government aircraft fleet operators, original equipment manufacturers and independent service customers throughout the world. Further information can be found at http://www.aarcorp.com.

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, 2004 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.

SOURCE AAR CORP.

CONTACT: Chris Mason, Director of Corporate Communications of AAR, +1-630-227-2062, chris.mason@aarcorp.com