AAR Receives U.S. and Chinese Regulatory Approvals for 737-800 Interior Modification

WOOD DALE, ILLINOIS (June 22, 2011) — AAR (NYSE: AIR) has received design approvals from the Federal Aviation Administration (FAA) and the Civil Aviation Administration of China (CAAC) for the interior modification of 737-800 aircraft operated by Shandong Airlines. The FAA’s Supplemental Type Certificate (STC) and the CAAC’s Validation of Supplemental Type Certificate (VSTC) were obtained in conjunction with the design and modification of two new Boeing aircraft to accommodate the installation of eight business-class and 160 economy-class seats.

For the first time, AAR joined forces with Chinese leasing company Dragon Aviation Leasing Company Limited to modify and deliver aircraft to a new Chinese customer. This project also marks the first instance in which AAR has worked with STAECO, a leading provider of maintenance, repair and overhaul services in China, and the Northwest Regional Administration of the CAAC to complete an aircraft modification.

“Receiving both FAA STC and CAAC VSTC approvals within a week of completing the first modification is an accomplishment of which we at AAR Engineering Services are very proud,” said Michael Leung, Director, AAR Engineering Services – Asia. “Through the collaborative efforts of our facilities in Singapore and North America, we provided an efficient design and obtained FAA and CAAC approvals both on time and on budget.”

Strong support from the FAA and CAAC made the approvals possible in the short time frame. AAR hopes to build on the success of this program and use its extensive experience with international regulatory environments and certification requirements to provide cabin and other aircraft modification/engineering services for more customers in China and throughout Asia.

Commenting on the approvals, Mr. Zhang Song, Technical Director of Dragon Aviation Leasing, said, “We are extremely pleased with the rapid approvals of the two Shandong Airlines 737-800 cabin modifications, which will enable our customer to quickly return the aircraft to revenue service. AAR Engineering Services’ flexibility and ability to seamlessly combine their engineering, planning, project execution and communication skills have made them a valuable and reliable partner in the achievement of this important milestone.”

AAR Engineering Services provides a wide range of high-quality, cost-effective technical services specializing in interior reconfigurations, structural and systems modifications, and avionics upgrades requiring FAA or other regulatory agency approvals. 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 and defense customers through four operating segments: Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems; and Government and Defense Services. More information can be found at www.aarcorp.com.