AAR Corp.

AAR to Manage Repairs, Procure Spare Parts for UK’s Royal Squadron Fleet

WOOD DALE, Illinois, USA – December 12, 2012 – AAR (NYSE: AIR) has been selected by the UK Ministry of Defence (UK MoD) to be the exclusive manager and single source of all repairs and spare parts requirements for its fleet of BAe146 and HS125 aircraft, and  of all unit exchanges for the HS125. The three-year agreement includes a one-year renewal option.

The aircraft are operated by the No. 32 Royal Squadron at RAF Northolt and are used to transport VIPs, including members of the Royal Family, and more recently to carry passengers and freight between Afghanistan and the UK. The BAe146 also undertakes communications roles as part of its operations.  The UK MoD plans to double the number of BAe146s to four in 2013 to support its operations.

The UK MoD previously outsourced the repairs, spares and unit exchanges for the BAe146 and HS125 to multiple vendors. By establishing AAR as a single supplier, these tasks can be managed faster and more efficiently.

“We are excited to grow our existing relationship with the UK Ministry of Defence and to provide them with an efficient and cost-effective component repair and procurement program supporting the vital operational roles these aircraft play,” said John Holmes, Aviation Services Group Vice President, Inventory Management and Distribution. “With our experience managing sophisticated supply chains and our history of solid execution, we look forward to a long and mutually beneficial relationship between AAR and the Ministry of Defence.”

AAR has extensive experience with supply chain and component repair management for commercial airline and government fleets. The Company is part of the Northrup Grumman team supporting the UK MoD Royal Air Force Fleet of E3-D Sentry Airborne Warning and Control System (AWACS) aircraft under its Sentry Whole Life Support Programme. AAR also supplies KC-10 Extender Contractor Logistics Support (CLS).