Leading Aviation Supplier AAR Seeks to Expand with Move into Duluth

Ranked one of the Top 5 aircraft maintenance providers in the world, AAR capitalizes on new location and skilled workforce to grow its North American operations

WOOD DALE, Illinois – Recently recognized as the #1 aircraft parts supplier in the world, AAR (NYSE: AIR) plans to build on its position as one of the top-5 Maintenance Repair and Overhaul (MRO) services providers and the largest independent provider of MRO services in North America with a planned expansion into Duluth, Minnesota.

At a ceremony held at Duluth City Hall on Tuesday, April 17, AAR and Duluth made their intentions official with the signing of a Letter of Intent (LOI) to work toward establishing a new AAR MRO location at a facility previously operated by Northwest Airlines, located at Duluth International Airport. The location offers a strong combination of a world-class aircraft maintenance infrastructure and a labor pool with extensive aircraft maintenance experience.

“Today’s signing is a major step forward toward establishing a presence in Duluth to grow our MRO business and provide additional value to customers,” said Dany Kleiman, Group Vice President, Maintenance, Repair and Overhaul for AAR. “We want to thank the State of Minnesota, Mayor Ness and the City of Duluth, and the team at the Duluth Economic Development Authority for their hard work and support. We hope to be become an integral part of the Duluth business community.”

The signing follows a year-long search by AAR, which currently operates MROs in Miami, Indianapolis, Oklahoma City and Hot Springs, Arkansas, where the Company is taking a leadership role in building partnerships to advance education, workforce development and economic growth. AAR and Duluth are working together to prepare the facility as the Company begins marketing the new operation to potential customers.

“This was a true team effort between AAR, the City and its partners to achieve this important day in Duluth history,” said the Honorable Don Ness, Mayor of the City of Duluth. “Duluth offers a great combination of factors, including the design of the facility, its prime location and a strong pool of talented aircraft technicians that provides AAR with an attractive location to expand its operations.”

AAR plans to lease 152,000 square feet of the 188,000 square-foot facility upon landing a launch customer, targeted for this summer, and is in the process of obtaining the FAA approvals required to commence operations. AAR will prepare the building using a team of 15 to 20 current employees and local contractors. Securing a single line of aircraft maintenance at the facility could generate up to 70 jobs. At full capacity, with four lines of maintenance, the operation could employ as many as 225 people.

AAR supports commercial airlines and government agencies with a wide range of aviation maintenance, engineering and repair services. In addition to its major MRO facilities in Miami, Indianapolis, Oklahoma City and Hot Springs, Arkansas, AAR operates a landing gear, wheels and brakes services facility in Miami and aircraft component repair facilities in New York and Amsterdam. AAR combines services offered through these locations into high-value, custom solutions designed to meet individual customer requirements.