AAR and FTAI Aviation extend their exclusive Serviceable Engine Products agreement, providing CFM56 engine material to the global aviation aftermarket through 2030
AAR CORP. (NYSE: AIR) has extended its exclusive Serviceable Engine Products agreement with FTAI Aviation through 2030, continuing their collaboration on CFM56 used serviceable material (USM). The partnership, initially established in 2020, involves AAR managing the teardown, repair, marketing, and sales of spare parts from FTAI's growing CFM56 engine pool of over 450 engines.
AAR has strengthened its capabilities by acquiring five additional global component repair facilities since the original agreement. This expansion enhances AAR's ability to support maintenance, repair, and overhaul of engine components. The collaboration serves the global aviation aftermarket and FTAI's Module Factory™, which specializes in modular repair and refurbishment of CFM56-7B and CFM56-5B engines.
AAR CORP. (NYSE: AIR) ha esteso il suo accordo esclusivo per i prodotti di motori riparabili con FTAI Aviation fino al 2030, continuando la loro collaborazione sui materiali di servizio utilizzabili (USM) per il CFM56. La partnership, inizialmente stabilita nel 2020, prevede che AAR gestisca lo smontaggio, la riparazione, il marketing e la vendita di ricambi provenienti dal crescente parco motori CFM56 di FTAI, che comprende oltre 450 motori.
AAR ha potenziato le proprie capacità acquisendo cinque ulteriori strutture di riparazione di componenti a livello globale dall'accordo originale. Questa espansione migliora la capacità di AAR di supportare la manutenzione, la riparazione e la revisione dei componenti dei motori. La collaborazione serve il mercato secondario dell'aviazione globale e la FTAI's Module Factory™, specializzata nella riparazione e nel rinnovamento modulare dei motori CFM56-7B e CFM56-5B.
AAR CORP. (NYSE: AIR) ha ampliado su acuerdo exclusivo de Productos de Motores Reparable con FTAI Aviation hasta 2030, continuando su colaboración en material de servicio utilizable (USM) para el CFM56. La asociación, establecida inicialmente en 2020, implica que AAR gestione el desmantelamiento, la reparación, el marketing y la venta de piezas de repuesto del creciente grupo de motores CFM56 de FTAI, que cuenta con más de 450 motores.
AAR ha fortalecido sus capacidades al adquirir cinco instalaciones adicionales de reparación de componentes a nivel global desde el acuerdo original. Esta expansión mejora la capacidad de AAR para apoyar el mantenimiento, la reparación y la revisión de componentes de motores. La colaboración sirve al mercado de posventa de la aviación global y a la FTAI's Module Factory™, que se especializa en la reparación y renovación modular de los motores CFM56-7B y CFM56-5B.
AAR CORP. (NYSE: AIR)는 FTAI Aviation과의 서비스 가능한 엔진 제품 독점 계약을 2030년까지 연장하여 CFM56 사용 가능한 자재(USM)에 대한 협력을 지속하고 있습니다. 2020년에 처음 체결된 이 파트너십은 AAR이 FTAI의 450대 이상의 CFM56 엔진 풀에서 예비 부품의 분해, 수리, 마케팅 및 판매를 관리하는 것을 포함합니다.
AAR은 원래 계약 이후 5개의 추가 글로벌 부품 수리 시설을 인수하여 역량을 강화했습니다. 이 확장은 엔진 부품의 유지보수, 수리 및 정비를 지원하는 AAR의 능력을 향상시킵니다. 이 협력은 글로벌 항공기 애프터마켓과 CFM56-7B 및 CFM56-5B 엔진의 모듈 수리 및 개조를 전문으로 하는 FTAI의 모듈 공장을 지원합니다.
AAR CORP. (NYSE: AIR) a prolongé son accord exclusif sur les produits de moteurs réparables avec FTAI Aviation jusqu'en 2030, poursuivant ainsi leur collaboration sur les matériaux de service utilisables (USM) pour le CFM56. Le partenariat, établi initialement en 2020, implique qu'AAR gère le démontage, la réparation, le marketing et la vente de pièces de rechange provenant du parc de moteurs CFM56 en pleine expansion de FTAI, qui compte plus de 450 moteurs.
AAR a renforcé ses capacités en acquérant cinq installations de réparation de composants supplémentaires à l'échelle mondiale depuis l'accord initial. Cette expansion améliore la capacité d'AAR à soutenir la maintenance, la réparation et la révision des composants de moteurs. La collaboration sert le marché secondaire de l'aviation mondiale et la FTAI's Module Factory™, spécialisée dans la réparation et la rénovation modulaire des moteurs CFM56-7B et CFM56-5B.
AAR CORP. (NYSE: AIR) hat seine exklusive Vereinbarung über wartbare Motorprodukte mit FTAI Aviation bis 2030 verlängert und setzt damit die Zusammenarbeit im Bereich der verwendbaren Materialien (USM) für den CFM56 fort. Die Partnerschaft, die ursprünglich 2020 gegründet wurde, umfasst die Verwaltung von Zerlegung, Reparatur, Marketing und Verkauf von Ersatzteilen aus dem wachsenden CFM56-Motorenpool von FTAI mit über 450 Motoren durch AAR.
AAR hat seine Fähigkeiten durch den Erwerb von fünf weiteren globalen Komponentenreparatureinrichtungen seit dem ursprünglichen Vertrag gestärkt. Diese Expansion verbessert die Fähigkeit von AAR, die Wartung, Reparatur und Überholung von Motorenteilen zu unterstützen. Die Zusammenarbeit dient dem globalen Luftfahrt-Nachmarkt und der FTAI's Module Factory™, die sich auf modulare Reparatur und Überholung von CFM56-7B und CFM56-5B Motoren spezialisiert hat.
- Extended exclusive agreement through 2030 secures long-term revenue stream
- Access to growing pool of over 450 CFM56 engines
- Expanded component repair capabilities through acquisition of 5 facilities
- Strong market position in growing CFM56 aftermarket segment
- None.
Insights
This extended partnership through 2030 significantly strengthens AAR's position in the crucial CFM56 aftermarket. The CFM56 engine family remains one of aviation's most successful platforms, powering thousands of Boeing 737 and Airbus A320 family aircraft worldwide with a massive installed base that will require ongoing maintenance for decades.
AAR's exclusive access to FTAI's inventory of over 450 engines (and growing) provides exceptional competitive positioning in the high-demand Used Serviceable Material (USM) segment. USM solutions are increasingly critical for airlines seeking to control maintenance costs while maintaining reliability, especially as many carriers delay fleet renewals in the current economic environment.
The company's strategic expansion of component repair capabilities through five additional global facilities since the 2020 agreement inception demonstrates AAR's commitment to vertical integration in this business line. This expanded footprint enables AAR to capture greater value by performing more repairs in-house rather than outsourcing, enhancing margins while maintaining quality control.
For context, the CFM56 aftermarket remains robust despite the engine family being superseded in new production aircraft. With thousands of aircraft operating these engines globally, and typical service lives of 20+ years, this partnership secures AAR's participation in a substantial market segment with reliable demand well beyond the agreement's 2030 timeframe.
This 10-year partnership extension provides AAR with significant revenue visibility through 2030 in its engine services segment. While specific financial terms aren't disclosed, the agreement's exclusive nature and expanded engine pool size (450+ engines) suggest material and growing revenue potential as global air travel continues to recover.
AAR's acquisition of five additional component repair facilities since the original 2020 agreement demonstrates substantial capital investment to maximize value capture from this partnership. This vertical integration strategy typically enhances margins by bringing previously outsourced work in-house.
The extension's long duration (through 2030) offers considerable stability in AAR's business model. For a
The growing CFM56 engine pool (now exceeding 450 units) suggests the partnership's scope has expanded significantly since inception. Each engine contains thousands of potentially serviceable parts, representing substantial recurring revenue opportunities through teardown, repair, and remarketing activities.
This renewed commitment also signals continued strong execution of AAR's asset-light business model, where the company leverages its technical expertise and global distribution capabilities without the capital burden of engine ownership, which remains with FTAI.
The collaboration has made USM inventory available to the global aviation aftermarket and FTAI's consumption at the Module Factory™, a dedicated commercial maintenance center focused on modular repair and refurbishment of CFM56-7B and CFM56-5B engines. Through its worldwide network, AAR will manage the teardown, repair, marketing, and sales of spare parts from FTAI's CFM56 engine pool totaling over 450 engines and growing.
Since signing the original agreement in 2020, AAR expanded its Component Services footprint through the acquisition of five additional global component repair facilities. The additional capabilities enable AAR to support the maintenance, repair, and overhaul of a larger pool of engine components in support of this program.
"AAR is proud to be the exclusive service provider for this agreement with FTAI. The demand for this industry-leading engine platform continues to grow, and our collaboration supports the needs of the global aviation aftermarket," said John M. Holmes, AAR's Chairman, President and CEO. "AAR is pleased to combine our strong reputation for engine USM offerings, Component Services capabilities, and global sales team with FTAI's market position through 2030."
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For more information on AAR's engine solutions, visit https://www.aarcorp.com/en/products/engine-solutions/.
About AAR
AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the
About FTAI Aviation
FTAI owns and maintains commercial jet engines with a focus on CFM56 and V2500 engines. FTAI's propriety portfolio of products, including the Module Factory and a joint venture to manufacture engine PMA, enables it to provide cost savings and flexibility to our airline, lessor, and maintenance, repair, and operations customer base. Additionally, FTAI owns and leases jet aircraft which often facilitates the acquisition of engines at attractive prices. FTAI invests in aviation assets and aerospace products that generate strong and stable cash flows with the potential for earnings growth and asset appreciation.
This press release may contain certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, reflecting management's expectations about future conditions, including anticipated activities and benefits under the extended agreement. Forward-looking statements may also be identified because they contain words such as ''anticipate,'' ''believe,'' ''continue,'' ''could,'' ''estimate,'' ''expect,'' ''intend,'' ''likely,'' ''may,'' ''might,'' ''plan,'' ''potential,'' ''predict,'' ''project,'' ''seek,'' ''should,'' ''target,'' ''will,'' ''would,'' or similar expressions and the negatives of those terms. These forward-looking statements are based on beliefs of management, as well as assumptions and estimates based on information currently available to management and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. For a discussion of these and other risks and uncertainties, refer to "Risk Factors" in AAR CORP.'s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. These events and uncertainties are difficult or impossible to predict accurately and many are beyond management's control. Management assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. |
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FAQ
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