June 21, 2016
AAR to Provide Tip-to-Tail Support to CommutAir’s ERJ 145 Fleet
Global aftermarket leader signs two multiyear contracts to service growing U.S. carrier
WOOD DALE, Illinois – AAR (NYSE: AIR), a leading aviation aftermarket service provider for the world’s airlines, has been selected by regional carrier CommutAir to provide ongoing support services for its newly inducted ERJ 145 aircraft. AAR will provide full cost per flight hour (CpFH) services for rotable components including inventory management, logistics, overhaul and repair. In addition, AAR will also provide wheel, tire and brake maintenance and inventory services for the new fleet under a full cost per landing structure (CpL).
The two multiyear contracts with CommutAir bundle the capabilities of two AAR divisions into a single integrated offering for tip-to-tail fleet support. Component repairs, including wheel, tire and brakes, will be performed at AAR Landing Gear in Miami, AAR Component Services in Garden City, New York, and other AAR managed repair facilities. AAR Supply Chain Services will manage component inventory, logistics and repair cycles, accessing rotable and replacement parts through its global warehouse and supply network. Both contracts include a guaranteed service level.
AAR’s digital platforms will also enable the airline to track the progress of work in real time, including on select mobile devices. AAR will deploy its proprietary predictive-maintenance software to ensure the right parts are in the right place at the right time. Using cutting-edge analytics, AAR anticipates repair needs to minimize unscheduled events and aircraft-on-ground-time, crucial to carriers’ success.
CommutAir, which operates on behalf of United Airlines as United Express, recently announced plans to triple the size of its fleet with the induction of 40 Embraer 145 jet aircraft over the next two years. Since its start in 1989, CommutAir has grown to serve more than 1.4 million passengers annually and currently averages 100 flights a day to more than 20 cities within the United States. The regional carrier is based near Cleveland Hopkins International Airport in Ohio. Its main hubs are Washington Dulles Airport and Newark Liberty International Airport.
“CommutAir recognized AAR has the bandwidth, expertise and experience to support its fleet maintenance and growth strategy,” said Ken Hein, Senior Vice President, AAR Supply Chain. “This is the latest example of AAR’s unique ability to provide tip-to-tail support of new and legacy fleets. We are excited to grow our longstanding partnership.”
“Our goal was to partner with a turnkey service provider offering predictable costs and superior reliability as we execute our growth plans as a regional partner of United Airlines,” said Subodh Karnik, President and CEO of CommutAir. “The depth and breadth of AAR is very impressive, and we look forward to partnering with them to carry out our promise to deliver a safe and reliable product for our customers, partners and employees.”
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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