AAR awarded five-year P-8A Poseidon engine overhaul contract by U.S. Navy
AAR CORP. (NYSE: AIR) has been awarded a five-year contract by the U.S. Navy's Naval Air Systems Command (NAVAIR) for engine depot maintenance and repair of its P-8A Poseidon Aircraft fleet. The contract has an aggregate ceiling value of approximately $1.2 billion. Starting October 2024, AAR, in partnership with Delta TechOps, will provide program management, supply chain management, engineering support, and maintenance services to enhance engine asset availability.
This contract follows a recent award for P-8A airframe maintenance and aligns with AAR's strategy to grow its commercial derivative business. It is expected to increase engine part sales in the Company's Part Supply segment. The partnership aims to support the U.S. Navy's maritime patrol and reconnaissance mission through comprehensive P-8A maintenance and repair services.
AAR CORP. (NYSE: AIR) ha ricevuto un contratto quinquennale dal Comando dei Sistemi Aerei Navali della Marina degli Stati Uniti (NAVAIR) per la manutenzione e riparazione dei motori della flotta di aerei P-8A Poseidon. Il contratto ha un valore complessivo massimo di circa 1,2 miliardi di dollari. A partire da ottobre 2024, AAR, in collaborazione con Delta TechOps, fornirà gestione del programma, gestione della catena di approvvigionamento, supporto ingegneristico e servizi di manutenzione per migliorare la disponibilità degli asset dei motori.
Questo contratto segue un recente premio per la manutenzione della cellula del P-8A e si allinea con la strategia di AAR di espandere il proprio settore commerciale. Si prevede che aumenti le vendite di pezzi di ricambio per motori nel segmento di Fornitura dei Ricambi dell'azienda. La partnership mira a supportare la missione di pattugliamento marittimo e ricognizione della Marina degli Stati Uniti attraverso servizi di manutenzione e riparazione completi per il P-8A.
AAR CORP. (NYSE: AIR) ha sido otorgada un contrato de cinco años por el Comando de Sistemas Aéreos Navales de la Marina de los EE. UU. (NAVAIR) para el mantenimiento y reparación de motores de su flota de aeronaves P-8A Poseidon. El contrato tiene un valor máximo agregado de aproximadamente 1.2 mil millones de dólares. A partir de octubre de 2024, AAR, en asociación con Delta TechOps, ofrecerá gestión de programas, gestión de la cadena de suministro, soporte de ingeniería y servicios de mantenimiento para mejorar la disponibilidad de activos de motores.
Este contrato sigue a un reciente premio para el mantenimiento de la estructura del P-8A y está alineado con la estrategia de AAR de crecer en su negocio de derivados comerciales. Se espera que aumente las ventas de piezas de motores en el segmento de Suministro de Piezas de la Compañía. La asociación tiene como objetivo apoyar la misión de patrullaje marítimo y reconocimiento de la Marina de los EE. UU. mediante servicios completos de mantenimiento y reparación del P-8A.
AAR CORP. (NYSE: AIR)가 미국 해군 항공 시스템 사령부(NAVAIR)로부터 5년 계약을 수주했습니다. 이는 P-8A 포세이돈 항공기 함대의 엔진 정비 및 수리에 대한 계약입니다. 이 계약의 총 한도 금액은 약 12억 달러입니다. 2024년 10월부터 AAR는 Delta TechOps와 협력하여 프로그램 관리, 공급망 관리, 엔지니어링 지원 및 엔진 자산 가용성을 높이기 위한 유지보수 서비스를 제공할 예정입니다.
이 계약은 최근 P-8A 기체 유지보수 수주에 이어진 것으로, AAR의 상업적 파생 사업을 성장시키기 위한 전략에 부합합니다. 엔진 부품 판매를 증가시킬 것으로 예상됩니다 회사의 부품 공급 부문에서. 이 파트너십은 P-8A 유지보수 및 수리 서비스를 통해 미국 해군의 해상 정찰 및 감시 임무를 지원하는 것을 목표로 합니다.
AAR CORP. (NYSE: AIR) a été
Ce contrat fait suite à une attribution récente pour la maintenance de la cellule du P-8A et s'inscrit dans la stratégie d'AAR de développer son activité dérivée commerciale. On s'attend à ce que cela augmente les ventes de pièces de moteur dans le segment de fourniture de pièces de l'entreprise. Le partenariat vise à soutenir la mission de patrouille maritime et de reconnaissance de la Marine des États-Unis grâce à des services complets de maintenance et de réparation pour le P-8A.
AAR CORP. (NYSE: AIR) wurde ein Fünfjahresvertrag vom Marine Aviation Systems Command (NAVAIR) der US Navy für Wartung und Reparatur von Triebwerken seiner P-8A Poseidon-Flotte zugesprochen. Der Vertrag hat einen Gesamtwert von etwa 1,2 Milliarden US-Dollar. Ab Oktober 2024 wird AAR in Zusammenarbeit mit Delta TechOps Programmmanagement, Lieferkettenmanagement, Ingenieurunterstützung und Wartungsdienstleistungen bereitstellen, um die Verfügbarkeit von Triebwerksressourcen zu erhöhen.
Dieser Vertrag folgt auf eine kürzliche Vergabe für die Wartung des P-8A-Rumpfes und steht im Einklang mit AARs Strategie, ihr Geschäft mit kommerziellen Derivaten auszubauen. Es wird erwartet, dass die Verkäufe von Triebwerksersatzteilen zunehmen im Bereich der Ersatzteilversorgung des Unternehmens. Die Partnerschaft soll die maritimen Patrouillen- und Aufklärungsmissionen der US Navy durch umfassende Wartungs- und Reparaturdienstleistungen für die P-8A unterstützen.
- Awarded a five-year contract worth up to $1.2 billion by the U.S. Navy
- Expands existing relationship with U.S. Navy, following recent P-8A airframe maintenance contract
- Expected to increase engine part sales in the Company's Part Supply segment
- Aligns with AAR's strategy to grow its commercial derivative business
- None.
Insights
This $1.2 billion contract for P-8A Poseidon engine maintenance is a significant win for AAR, bolstering its position in the defense sector. The five-year duration provides stable, long-term revenue, which is highly valued in the aerospace industry. This follows a recent airframe maintenance contract, indicating AAR's growing importance to the U.S. Navy's P-8A fleet.
The partnership with Delta TechOps is strategically smart, combining AAR's program management expertise with Delta's engine maintenance capabilities. This integrated approach could lead to improved operational efficiency and potentially higher profit margins.
For investors, this contract significantly increases AAR's backlog and provides revenue visibility. It also diversifies AAR's business mix, reducing reliance on commercial aviation. The expected increase in engine part sales could drive growth in the higher-margin Parts Supply segment, potentially boosting overall profitability.
This contract underscores the U.S. Navy's commitment to maintaining its P-8A Poseidon fleet, a critical asset for maritime patrol and reconnaissance. The substantial
AAR's selection for both airframe and engine maintenance contracts demonstrates its growing influence in the defense supply chain. This comprehensive support role could lead to additional opportunities with other military platforms or international P-8 operators.
The contract's start date of October 2024 allows time for preparation but also means immediate impact on financials will be delayed. Investors should monitor AAR's ability to ramp up operations and meet performance metrics, as success here could lead to future contract expansions or extensions.
Beginning October 2024, AAR, along with strategic partner Delta TechOps, will provide program management, supply chain management, engineering support, and maintenance and repair services to increase engine asset availability for the Navy's growing fleet. The additional engine maintenance capability achieved through this partnership with AAR will enable the
This contract is an important step forward in AAR's strategy to grow and advance its commercial derivative business through the delivery of integrated solutions. It is also expected to increase the volume of engine part sales in the Company's Part Supply segment.
"AAR's tailored solutions integrate government and commercial capabilities to provide parts supply, maintenance, and other services to meet customers' unique mission-critical needs," said Nicholas Gross, AAR's Senior Vice President of Integrated Solutions. "We are proud to expand our support of the Navy's maritime patrol and reconnaissance mission through P-8A maintenance and repair."
For more information on AAR's government solutions, visit https://www.aarcorp.com/en/services/government-solutions/.
About AAR
AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the
About Delta TechOps
Delta TechOps is the largest airline maintenance, repair and overhaul (MRO) provider in
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 five-year contract. 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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Editor@aarcorp.com
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SOURCE AAR CORP.
FAQ
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