A J Walter Aviation Enters into Purchase Agreement for Aveos Component Repair Business

London, August 2nd 2012: Today, A J Walter Aviation, the world’s leading independent provider of integrated aviation services, confirmed that it had signed an asset purchase agreement to buy the component repair business of Aveos Fleet Performance. AJW plans to develop a world class MRO operation to enhance its diversified business model and will establish the Montréal facility as its new global headquarters for the maintenance, repair and overhaul of aircraft components.

AJW has worked closely with the International Association of Machinists and Aerospace Workers (IAMAW) to formulate a new business structure that is both fair and commercially competitive, and its efforts have won the support of key stakeholders. AJW has an established and growing customer base of over 800 airlines, more than 400 aircraft under contract and annual group sales in excess of $400m. Global spend will exceed $150m in 2012. This considerable worldwide demand will help support a sustainable and substantial MRO business from the outset, and contribute to the business efficiencies and cost-savings that already form a part of AJW’s customer pledge.

A vertical integration into the supply chain is a strategic and logical next step for the evolution of AJW’s core suite of businesses. The purchase of the Aveos component maintenance division satisfies a strengthening portfolio of aviation based services and expands the organisation’s repair capabilities through partnership with a highly skilled Canadian workforce.

Both parties are committed to developing further their existing strong relationships with industry OEMs to sustain availability of spare parts and facilitate expanded support services for Airbus aircraft, as well as to provide the resources necessary for any future capability diversification. AJW welcomes the opportunity to work more closely with the current Aveos customer portfolio, including Air Canada, and to providing its global customer base with more comprehensive services. It is keen to establish a programme that secures long-term business and work for the people of Québec, as well as enhancing Montréal’s aviation pedigree.

“We plan to safeguard an outstanding facility and talent base that will take fresh heart from AJW’s entrepreneurial ethos,” says AJW President, Christopher Whiteside. “We are committed to re-establishing a world class MRO operation in Montréal which will enable us to provide competitive service levels, quality and cost guarantees to the global aviation community. Our team has been working with the Chief Restructuring Officer and Monitor, the Machinist Union and the Québec Government for several weeks to secure unequivocal support for our bid.”

AJW is marking its eighty years in aviation with a sweeping expansion programme that has included trading offices in Miami, Dubai and Singapore; additional strategic spares hubs across Europe, Asia, the Middle East and the Americas; a highly successful launch of a new engines division; the re-launch of AJW Leasing; and the founding of AJW Capital Partners Limited. A new purpose-built UK global headquarters and logistics centre will open later in 2012 to house a workforce that has recently more than doubled.

Adding the world class component repair capabilities of the Aveos facility to this dynamic structure will set new standards within the aviation sector. Consequently AJW looks forward to a successful outcome of the judicial process and to the detailed implementation of its growth strategy.