AAR awarded first Captains of Industry contract by the U.S. Department of Defense’s DLA focused on distribution of sustainment services

Rhea-AI Summary

AAR CORP. (NYSE: AIR) has secured a 20-year Captains of Industry contract with the Defense Logistics Agency (DLA) to enhance global supply chain support for the U.S. Department of Defense and its allies. This strategic partnership aims to improve weapon system readiness through comprehensive supply chain strategies, including parts supply and maintenance services. As a result, AAR anticipates forming new OEM partnerships, which will facilitate better collaboration and operational efficiencies. This contract strengthens AAR's position in the defense sector and aligns with its commitment to provide cost-effective support.

Positive

• Secured a 20-year contract with DLA, enhancing long-term business stability.
• Opportunity for new OEM partnerships will lead to operational efficiencies.
• Contract focuses on improving weapon system readiness, aligning with defense priorities.

Negative

• None.

Wood Dale, Illinois, July 19, 2022 (GLOBE NEWSWIRE) -- AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, MROs, and OEMs, has been awarded a Captains of Industry contract with the Defense Logistics Agency (DLA), establishing a long-term strategic relationship to provide total global supply chain support to the U.S. Department of Defense (DoD) and U.S. allies.

DLA’s Captains of Industry contracts are holistic support contracts with built in performance metrics geared to improve readiness for weapon systems. Contracts are awarded to partners who are able to help DoD increase warfighter readiness.

This 20-year term contract incorporates total supply chain support strategies, including but not limited to parts supply, performance-based logistics, engineering and technical solutions, depot and field maintenance activities, repair development, and forecasting and planning.

This contract will enable new AAR / OEM partnerships with DLA, which will allow for more efficient and open information sharing, mutual identification of opportunities, and contractual execution of sustainment solutions.

“This contract strengthens our relationship with the DLA by supporting their strategic mission to deliver improved readiness and transform logistics support,” said Christopher Gross, Senior Director, Program Management, OEM Solutions – Government. “This U.S. government-AAR partnership recognizes AAR’s unique ability to provide flexible, timely, and cost-effective support to the U.S. Armed Services and Foreign Military Sale (FMS) end-users,” said Timothy Driscoll, Vice President, OEM Solutions – Government.

For more information on AAR’s OEM Solutions, visit aarcorp.com/oems.

About AAR
AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the Chicago area, AAR supports commercial and government customers through two operating segments: Aviation Services and Expeditionary Services. AAR’s Aviation Services include Parts Supply; OEM Solutions; Integrated Solutions; and Maintenance, Repair, and Overhaul (MRO) Services. AAR’s Expeditionary Services include Mobility Systems operations. Additional information can be found at aarcorp.com.

This press release contains 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 which reflect management’s expectations about future conditions, including enabling AAR to bring on new OEM / DLA partnerships, which will allow for more efficient and open information sharing, mutual identification of opportunities, and contractual execution of sustainment solutions, strengthening our relationship with the DLA and AAR’s unique ability to provide flexible, timely, and cost-effective support.. 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 Company management, as well as assumptions and estimates based on information currently available to the Company, 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 our 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 the Company’s control. The Company 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.