AAR to Provide Mesa Air Group With End-to-End Aviation Supply Chain Solution

WOOD DALE, Ill., /PRNewswire-FirstCall/ -- AAR (NYSE: AIR) announced today that it has been awarded a contract by Air Midwest, Inc., a wholly owned subsidiary of Mesa Air Group, Inc., to provide aviation supply chain services for its fleet of 24 Beechcraft 1900D aircraft. According to the five-year agreement, AAR will provide a comprehensive materials management program including logistics, line station management, repair management and scrap replacement and servicing for four primary line stations and 10 outlying repair stations.

"In our business, safety, quality and reliability are essential to our success," said Charles Kettler, Mesa's Vice President of Technical Services and Purchasing. "AAR has continually demonstrated the ability to provide a level of service that exceeds our expectations, allowing us to control costs while maintaining the highest level of service. We are confident that we have made the right choice in trusting our supply chain management program to AAR."

AAR will be responsible for all aspects of the supply chain necessary to ensure the right parts are available at the right location at the right time - 24 hours a day, seven days a week. Parts supply and logistics will be handled jointly by AAR Distribution and AAR Allen Aircraft, while component repair will be performed by AAR Aircraft Component Services - New York.

"We are looking forward to building our relationship with Mesa Air Group by supplying Air Midwest with this comprehensive supply chain management program," said John Holmes, General Manager of AAR Allen Aircraft and AAR Distribution. "By implementing a full-scale materials management program with AAR, Air Midwest can capitalize on AAR's unique ability to manage the complete supply chain process, including new and used parts supply and component repair and logistics."

About Mesa Air Group

Mesa Air Group, Inc. (Nasdaq: MESA) currently operates 179 aircraft with over 1,100 daily system departures to over 173 cities, 43 states, the District of Columbia, Canada, and Mexico. Mesa operates as America West Express, US Airways Express and United Express under contractual agreement with America West, US Airways and United Airlines, respectively, and independently as Mesa Airlines. The Company, which was founded by Larry and Janie Risley in New Mexico in 1982, has approximately 5,000 employees. Mesa is a member of the Regional Airline Association and Regional Aviation Partners. The Company was named 2005 Regional Airline of the Year by Air Transport World Magazine.

About AAR

AAR is a leading provider of products and value-added services to the worldwide aerospace/aviation industry. Products and services include proprietary inventory management and logistic support services; maintenance, repair and overhaul of aircraft and aircraft components; engine and aircraft sales and leasing; and manufacturing of aircraft parts and mobility systems. Headquartered in Wood Dale, Illinois, AAR serves commercial and government aircraft fleet operators and independent service customers throughout the world.

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