WOOD DALE, Illinois, November 19, 2013 — AAR (NYSE: AIR) has entered into an exclusive multimillion-dollar five-year agreement with Northrop Grumman Corporation (NYSE: NOC) to supply specific airframe parts and accessories for the E-2C Hawkeye aircraft operated by the Japan Air Self Defense Force (JASDF).
The contract will be managed by AAR’s Defense Systems and Logistics Distribution division, which will sell directly to Sumitomo Corporation, one of the parts trading companies used by the Japan Ministry of Defense (JMOD) to procure parts and accessories. AAR will stock inventory to increase JASDF’s E-2C Hawkeye readiness level.
“Providing in-stock inventory reduces lead times and helps increase the sustainability of the JASDF E-2C aircraft platform,” said John Holmes, Aviation Services Group Vice President – Aviation Supply Chain for AAR. “This is critically important as the Japanese Ministry of Defense increases the use of the E-2C to perform surveillance and reconnaissance over its waterways and in its skies.”
This agreement expands the relationship between AAR and Sumitomo, which began in 2012. At that time, AAR was awarded a five-year contract by Pratt & Whitney AeroPower to become the exclusive supplier of Auxiliary Power Unit (APU) and Jet Fuel Starter (JFS) parts and accessories to the JMOD.
“Building upon our role as a JMOD supplier reinforces our presence in Japan and our position as a global market leader in parts supply chain and distribution,” Holmes said.
AAR, a global leader in aviation services and technology products for commercial and defense customers, will showcase its full range of capabilities at the Dubai Airshow, November 17-21, at Dubai World Central. AAR representatives will be available to brief reporters and bloggers on its Airlift and other services at its stand, #2118.
AAR is a global aerospace and defense contractor that employs more than 6,000 people in 17 countries. Based in Wood Dale, Illinois, AAR supports commercial, government and defense customers through two operating segments: Aviation Services and Technology Products. AAR’s services include inventory management and parts distribution; aircraft maintenance, repair and overhaul; and expeditionary airlift. AAR’s products include cargo systems and containers; mobility systems and shelters; advanced aerostructures; and command and control systems. More information can be found at www.aarcorp.com.
The five-year contract will be managed by AAR's Defense Systems and Logistics division and is expected to generate approximately $8 million per year.
The United States Transportation Command (USTRANSCOM) has exercised a renewal option valued at approximately $156 million for airlift support in Afghanistan through October 31, 2014.
AAR will act as an aggregator, procuring and managing the parts and providing them to the customer’s main warehouse facility as required. In doing so, AAR will take the place of more than 150...