April 29, 2014
AAR Signs Five-Year Contract to Support Air Canada’s Narrow-Body Airbus Fleet
DULUTH, Minnesota – AAR (NYSE: AIR) has signed a five-year exclusive contract with Air Canada to support its fleet of 89 Airbus 319, 320 and 321 narrow-body aircraft. The scheduled heavy maintenance will be performed at AAR’s maintenance, repair and overhaul (MRO) facility at Duluth International Airport.
The five-year deal formally extends service that began under a letter of intent signed in October 2012. Work initially commenced at AAR’s aircraft maintenance facility in Miami and was transitioned to Duluth after AAR opened the new MRO in November of that year.
The contract was ceremonially signed by AAR and Air Canada executives today at an event to celebrate a maintenance milestone at AAR’s Duluth repair station – completion of the 100th aircraft for Air Canada. The aviation executives were joined at the hangar by Duluth Mayor Don Ness, the Canadian Consulate General, other local and state officials and AAR employees to showcase the public-private partnerships that have played a key role in re-opening the formerly abandoned 188,000-square-foot hangar. Today, AAR Aircraft Services – Duluth supports three lines of aircraft maintenance and 305 jobs and is on track to add a fourth line in November, creating another 70 jobs.
“I’d like to thank Air Canada for making this relationship official based on the good work our employees have been doing,” said Chris Jessup, Senior Vice President, AAR Airframe and Engineering Services. “Locating an MRO in Duluth has been a great asset for us, and we look forward to meeting the next milestone.”
Air Canada’s Vice President, Maintenance and Engineering, Alan Butterfield, added, “We are very pleased with the work performed by AAR Airframe and Engineering Services on Air Canada’s narrow body airbus fleet. This contract assures Air Canada of a quality solution for our A320F maintenance needs through AAR’s extensive and proven capabilities in this field.”
The Duluth repair center operates as part of AAR’s nationwide 1MRO Network, which also includes facilities in Indianapolis, Miami, and 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.
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.
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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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