AAR, KIRA establish KALS LLC joint venture, awarded E-6B contract by U.S. Navy
AAR CORP. (NYSE: AIR) has formed a joint venture called KALS with KIRA Aviation Services under the federal government's Small Business Administration Mentor-Protégé Program. The venture has secured a significant E-6B Mercury pilot training contract from the U.S. Navy.
The contract, structured as a firm fixed-price indefinite-delivery/indefinite-quantity agreement, will provide in-flight training and currency for Naval Aviators. Operations will be conducted in Oklahoma City through March 2027. Through this partnership, AAR will share its aviation expertise with KIRA, helping the small business develop new capabilities and positioning it for future growth.
The joint venture combines AAR's extensive experience with KIRA's service reputation, aiming to meet Department of Defense needs for maintenance and supply chain services. KIRA currently provides base operations and facility support to the U.S. government.
AAR CORP. (NYSE: AIR) ha formato una joint venture chiamata KALS con KIRA Aviation Services nell'ambito del Programma di Mentor-Protégé della Small Business Administration del governo federale. La joint venture ha ottenuto un significativo contratto di addestramento per piloti E-6B Mercury dalla Marina degli Stati Uniti.
Il contratto, strutturato come un accordo a prezzo fisso fermo di fornitura indefinita/quantità indefinita, fornirà addestramento in volo e aggiornamenti per i piloti della Marina. Le operazioni si svolgeranno a Oklahoma City fino a marzo 2027. Grazie a questa partnership, AAR condividerà la sua esperienza nel settore dell'aviazione con KIRA, aiutando la piccola impresa a sviluppare nuove capacità e preparandola per una crescita futura.
La joint venture combina l'ampia esperienza di AAR con la reputazione di servizio di KIRA, mirando a soddisfare le esigenze del Dipartimento della Difesa per i servizi di manutenzione e della catena di approvvigionamento. KIRA attualmente fornisce operazioni di base e supporto alle strutture per il governo degli Stati Uniti.
AAR CORP. (NYSE: AIR) ha formado una empresa conjunta llamada KALS con KIRA Aviation Services bajo el Programa Mentor-Protégé de la Administración de Pequeñas Empresas del gobierno federal. La empresa conjunta ha asegurado un importante contrato de entrenamiento de pilotos E-6B Mercury de la Marina de los EE. UU.
El contrato, estructurado como un acuerdo de precio fijo firme de entrega indefinida/cantidad indefinida, proporcionará entrenamiento en vuelo y actualización para los aviadores navales. Las operaciones se llevarán a cabo en Oklahoma City hasta marzo de 2027. A través de esta asociación, AAR compartirá su experiencia en aviación con KIRA, ayudando a la pequeña empresa a desarrollar nuevas capacidades y posicionándola para un crecimiento futuro.
La empresa conjunta combina la amplia experiencia de AAR con la reputación de servicio de KIRA, con el objetivo de satisfacer las necesidades del Departamento de Defensa en cuanto a servicios de mantenimiento y cadena de suministro. KIRA actualmente proporciona operaciones de base y apoyo a las instalaciones para el gobierno de los EE. UU.
AAR CORP. (NYSE: AIR)는 연방 정부의 중소기업청 멘토-프로테제 프로그램에 따라 KIRA Aviation Services와 함께 KALS라는 합작 회사를 설립했습니다. 이 합작 회사는 미국 해군으로부터 중요한 E-6B Mercury 조종사 훈련 계약을 확보했습니다.
계약은 고정 가격의 무기한/무제한 수량 계약으로 구조화되어 있으며, 해군 조종사에게 비행 훈련 및 자격 유지를 제공합니다. 운영은 2027년 3월까지 오클라호마 시티에서 수행됩니다. 이 파트너십을 통해 AAR는 KIRA와 항공 전문 지식을 공유하여 소규모 기업이 새로운 역량을 개발하고 미래 성장에 대비할 수 있도록 돕습니다.
합작 회사는 AAR의 광범위한 경험과 KIRA의 서비스 평판을 결합하여 방위부의 유지보수 및 공급망 서비스 요구를 충족하는 것을 목표로 하고 있습니다. KIRA는 현재 미국 정부에 기지 운영 및 시설 지원을 제공합니다.
AAR CORP. (NYSE: AIR) a formé une coentreprise appelée KALS avec KIRA Aviation Services dans le cadre du Programme Mentor-Protégé de la Small Business Administration du gouvernement fédéral. La coentreprise a obtenu un important contrat de formation de pilotes E-6B Mercury de la part de la Marine américaine.
Le contrat, structuré comme un accord à prix fixe ferme avec livraison indéfinie/quantité indéfinie, fournira une formation en vol et un maintien des compétences pour les aviateurs navals. Les opérations se dérouleront à Oklahoma City jusqu'en mars 2027. Grâce à ce partenariat, AAR partagera son expertise en aviation avec KIRA, aidant la petite entreprise à développer de nouvelles capacités et à se positionner pour une croissance future.
La coentreprise combine l'expérience étendue d'AAR avec la réputation de service de KIRA, visant à répondre aux besoins du Département de la Défense en matière de services de maintenance et de chaîne d'approvisionnement. KIRA fournit actuellement des opérations de base et un soutien aux installations pour le gouvernement américain.
AAR CORP. (NYSE: AIR) hat ein Joint Venture namens KALS mit KIRA Aviation Services im Rahmen des Mentor-Protégé-Programms der Small Business Administration der Bundesregierung gegründet. Das Joint Venture hat einen bedeutenden Vertrag für die Pilotenausbildung E-6B Mercury von der US Navy gesichert.
Der Vertrag, der als fester Preisvertrag mit unbestimmter Lieferung/unbestimmter Menge strukturiert ist, wird Flugtraining und Aktualisierungen für Marinepiloten bereitstellen. Die Operationen werden bis März 2027 in Oklahoma City durchgeführt. Durch diese Partnerschaft wird AAR sein Fachwissen in der Luftfahrt mit KIRA teilen und der kleinen Firma helfen, neue Fähigkeiten zu entwickeln und sie für zukünftiges Wachstum zu positionieren.
Das Joint Venture kombiniert die umfassende Erfahrung von AAR mit dem Service-Ruf von KIRA und zielt darauf ab, die Bedürfnisse des Verteidigungsministeriums in Bezug auf Wartungs- und Lieferkettenservices zu erfüllen. KIRA bietet derzeit Basisoperationen und Unterstützung für Einrichtungen der US-Regierung an.
- Secured new U.S. Navy contract for E-6B Mercury pilot training
- Strategic expansion into government defense contracts through joint venture
- Long-term contract extending through March 2027
- Contract value not disclosed
- Revenue impact uncertain due to indefinite-delivery/indefinite-quantity nature of contract
Insights
This U.S. Navy E-6B Mercury pilot training contract represents a strategic win for AAR through its KALS joint venture with KIRA Aviation Services. The E-6B serves as a critical airborne command post for nuclear forces, making this training contract operationally significant despite its undisclosed financial value.
The structure as an indefinite-delivery/indefinite-quantity contract provides flexibility to the Navy while creating potential upside for the joint venture, as the government can adjust order quantities based on requirements. The contract's duration through March 2027 offers multi-year revenue visibility.
What's particularly notable is AAR's use of the SBA Mentor-Protégé Program structure, which gives the company access to set-aside contracts while helping the Navy meet small business contracting goals. This approach has proven effective for larger defense contractors to expand market share while navigating federal acquisition regulations.
For AAR, this represents continued penetration into specialized defense aviation support services beyond their traditional commercial MRO business. The specialized nature of E-6B training suggests higher margins than commercial work, while potentially creating pathways to additional defense aviation training opportunities across other military aircraft platforms.
This joint venture formation with KIRA Aviation Services demonstrates AAR's strategic diversification of its government services portfolio. While financial terms remain undisclosed, the structure provides three key advantages:
First, the Mentor-Protégé Program arrangement allows AAR to participate in contracts that might otherwise be restricted to small businesses, expanding its addressable market. Second, by partnering with KIRA, which has established government facility support credentials, AAR reduces business development costs and relationship-building timeframes.
Third, the firm fixed-price structure combined with an indefinite-delivery/indefinite-quantity model balances revenue predictability with growth potential, as actual service volumes may exceed initial estimates. The Oklahoma City location leverages existing aerospace infrastructure near Tinker Air Force Base.
The E-6B Mercury program is particularly valuable given its strategic military importance and specialized nature, creating higher barriers to entry for competitors. For context, pilot training contracts typically command premium pricing due to specialized skills required.
This approach aligns with AAR's broader strategy of balancing commercial aviation services with government work to reduce cyclicality in their business model, particularly important given recent commercial aviation volatility.
Under a firm fixed-price indefinite-delivery/indefinite-quantity contract, KALS will provide in-flight training and currency for Naval Aviators in support of the
The joint venture, KALS, was established by AAR and KIRA to meet pressing Department of Defense needs for maintenance and supply chain services. KIRA currently provides award-winning base operations and facility support to the
"We are excited to help solve an urgent need of the
"KIRA is thrilled to swiftly bring this critical support to the Navy. By combining the breadth and depth of experience of our two companies, KALS helps the Navy enhance their mission and helps the federal government meet their small business goals," said Beth Hershner, Tlingit Haida Tribal Business Corporation's Vice President of Operations, Information Technology and Engineering Professional Services.
About AAR
AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the
About KIRA Aviation Services
KIRA Aviation is a Tlingit Haida Tribal Business Corporation (THTBC) subsidiary - a Tribally-Owned 8(a) Small Business (Protégé). The company specializes in providing a wide range of facility maintenance, logistics support, and base operations services to various Department of Defense agencies.
About KALS LLC
KALS is a joint venture established by AAR CORP. and KIRA Aviation Services to meet the pressing demands of
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 pursuant to the joint venture. 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.
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