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AAR Sources and Modifies 737-400s for Colombian Air Force
Combination of services provides added value for new government customer

WOOD DALE, Ill., Nov. 8, 2012 /PRNewswire/ -- AAR (NYSE: AIR) announced today that it has sourced and is modifying two Boeing 737-400 aircraft for Colombia's Air Force, Fuerza Aerea Colombiana (FAC). The program is expected to generate approximately $31 million in the second half of the Company's current fiscal year.

The program demonstrates AAR's wide range of capabilities, which the Company combines to create custom-tailored solutions for its commercial and defense customers. This program also marks the first time AAR has supplied assets and services for Colombia's Air Force.

"We presented the modified 737-400 platform bundled with AAR's maintenance and logistics support as the most efficient means to satisfy the FAC's air transport, cargo and personnel movement requirements," said Donald J. Wetekam, Senior Vice President, Government and Defense Business Development for AAR. "The program is based on a successful procurement and conversion program we originally developed for the U.S. Government and we are looking forward to implementing this cost-effective, custom solution for the Colombian Air Force."

AAR managed the aircraft transactions and will perform inspections and maintenance checks at the Company's Aircraft Services business in Miami. One of the aircraft is being converted from a passenger configuration into a combination passenger/freighter (combi) and the second into a freighter-only configuration. To perform the cargo conversions, AAR is working with cargo conversion provider, Pemco. Pemco has unique specialization approvals for performing this modification for the 737-400 combi platform.

The program is based on a 737-400 sourcing and conversion program that AAR is performing for the U.S. Government, which combines multiple AAR capabilities including aircraft sourcing, maintenance and inspections, engine and landing gear work, parts provisioning and oversight of the conversion process. AAR is an industry leader at provisioning, maintaining and modifying the 737, an aircraft with a service life of 40+ years, low operating cost and high mission capabilities for governments, which provides increased value compared with the acquisition of new commercial or military transport aircraft.

About AAR

AAR is a leading provider of value-added products and services to the worldwide aerospace and government and defense industries. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve aviation and government/defense customers through two operating segments: Aviation Services and Technology Products. More information can be found at www.aarcorp.com.

AAR is ranked among the Top 100 military contractors in the world. The Company was also named the Best Aircraft Maintenance, Repair and Overhaul (MRO) Provider in the Americas, Aircraft Parts Supplier of the Year and ranked the No. 5 MRO provider in 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 1A, entitled "Risk Factors", included in the Company's Form 10-K for the fiscal year ended May 31, 2012. 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.

 

SOURCE AAR

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