WOOD DALE, Illinois, December 11, 2013 — AAR (NYSE: AIR) has signed a five-year contract to become the sole supplier of approximately 25,000 consumable and expendable line-item parts for a major commercial airline customer. The contract is valued at approximately $42 million in annual revenue.
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 suppliers. AAR will provide additional value through guaranteed fill rates that will be achieved by streamlining supply chain processes that include material planning, inventory control and receiving inspections.
“By aggregating the spending on materials with other programs managed by AAR, we can provide better pricing and improved service reliability,” said John M. Holmes, AAR’s Group Vice President — Aviation Supply Chain. “We look forward to delivering a cost-effective and sustainable solution and to serving as a single point of contact for an extensive selection of consumable and expendable parts.”
AAR will leverage supply-chain processes and expertise developed supporting commercial and defense customers and its own MRO operations. AAR will also continue to develop its integrated IT systems to provide the customer with access to a seamless support network. AAR currently supports the customer with a wide range of services including landing gear overhauls, aircraft maintenance and modifications, component repair services, engineering services, and ULD and engine parts supply.
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.