AAR signs new engine parts supply agreement with Chromalloy
AAR CORP. (NYSE: AIR) has signed a multi-year engine parts supply agreement with Chromalloy to become the exclusive distributor of PMA parts for CF6-80C2 engine high pressure turbine Stage 1 and Stage 2 turbine blades to the global aftermarket. The three-year agreement includes some account coverage exclusions due to Chromalloy's existing customer agreements. AAR has placed an initial provisioning order to ensure inventory availability for global distribution of these components.
AAR CORP. (NYSE: AIR) ha firmato un contratto pluriennale per la fornitura di parti di motore con Chromalloy, diventando il distributore esclusivo di parti PMA per le pale della turbina ad alta pressione di Stage 1 e Stage 2 del motore CF6-80C2 per il mercato globale. L'accordo triennale include alcune esclusioni di copertura contabile a causa degli accordi esistenti con i clienti di Chromalloy. AAR ha effettuato un ordine di approvvigionamento iniziale per garantire la disponibilità di inventario per la distribuzione globale di questi componenti.
AAR CORP. (NYSE: AIR) ha firmado un acuerdo de suministro de piezas de motor a varios años con Chromalloy para convertirse en el distribuidor exclusivo de piezas PMA para las palas de turbina de alta presión del motor CF6-80C2, correspondientes a la Etapa 1 y la Etapa 2, para el mercado global. El acuerdo de tres años incluye algunas exclusiones de cobertura de cuentas debido a los acuerdos existentes con los clientes de Chromalloy. AAR ha realizado un pedido inicial de aprovisionamiento para asegurar la disponibilidad de inventario para la distribución global de estos componentes.
AAR CORP. (NYSE: AIR)는 Chromalloy와 다년간의 엔진 부품 공급 계약을 체결하고 CF6-80C2 엔진의 고압 터빈 단계 1 및 단계 2 터빈 블레이드를 위한 PMA 부품의 독점 유통업체가 되었습니다. 이 3년 계약은 Chromalloy의 기존 고객 계약으로 인해 일부 계정 커버리지 제외가 포함되어 있습니다. AAR는 이러한 구성 요소의 글로벌 유통을 위한 재고 가용성을 보장하기 위해 초기 조달 주문을 발주했습니다.
AAR CORP. (NYSE: AIR) a signé un contrat de fourniture de pièces de moteur sur plusieurs années avec Chromalloy pour devenir le distributeur exclusif des pièces PMA pour les pales de turbine à haute pression des étapes 1 et 2 du moteur CF6-80C2 sur le marché mondial. Le contrat de trois ans comprend certaines exclusions de couverture de compte en raison des accords existants avec les clients de Chromalloy. AAR a passé une commande initiale de fourniture pour garantir la disponibilité des stocks pour la distribution mondiale de ces composants.
AAR CORP. (NYSE: AIR) hat einen mehrjährigen Vertrag über die Lieferung von Motorenteilen mit Chromalloy unterzeichnet und wird der exklusive Distributor von PMA-Teilen für die Hochdruckturbinenblätter der Stufen 1 und 2 des CF6-80C2-Motors für den globalen Aftermarket. Der dreijährige Vertrag umfasst einige Ausschlüsse von der Kontodeckung aufgrund bestehender Kundenverträge von Chromalloy. AAR hat eine erste Beschaffungsbestellung aufgegeben, um die Verfügbarkeit von Beständen für die weltweite Verteilung dieser Komponenten sicherzustellen.
- Secured exclusive global distribution rights for Chromalloy's CF6-80C2 engine parts
- Expanded aftermarket solution offerings portfolio
- Initial inventory already secured through provisioning order
- account coverage due to Chromalloy's pre-existing customer agreements
Insights
This strategic partnership marks a significant development in the aviation aftermarket sector. The exclusive distribution rights for Chromalloy's PMA parts for CF6-80C2 engine components positions AAR to capture substantial market share in the high-value engine parts segment. The CF6-80C2 engine has a large installed base across multiple aircraft types, including Boeing 747s and 767s, creating a steady demand for replacement parts.
The three-year agreement with initial inventory provisioning demonstrates AAR's commitment to ensuring immediate market availability. PMA parts typically offer cost advantages over OEM components while maintaining quality standards, which could help AAR attract price-sensitive customers in the current market environment where operators are focusing on maintenance cost reduction.
The deal strengthens AAR's competitive position in the engine parts distribution market. By securing exclusive distribution rights for these critical turbine blade components, AAR gains a significant advantage in servicing the global CF6-80C2 engine fleet. The HPT blade market is particularly lucrative due to the components' high replacement frequency and strict maintenance requirements.
The partnership with Chromalloy, a respected PMA manufacturer, enhances AAR's value proposition to MROs and operators. This could lead to increased market penetration and higher margins compared to traditional parts distribution, as PMA parts typically offer better profit potential while providing cost savings to end users.
"This agreement builds on the long relationship between AAR and Chromalloy for connecting innovative solutions to our global aftermarket customers. The combination of the Chromalloy engineering and manufacturing capability, with the AAR global aero-engine channel access ensures that our PMA solutions are accessible by operators and repair stations in every region," Chromalloy's Chief Executive Officer Chris Celtruda commented.
"AAR is pleased to partner with Chromalloy and to expand our aftermarket solution offerings to include Chromalloy's CF6-80C2 parts. AAR provides a complete range of solutions for engine repair facilities, ensuring access to the best value combination for our customers," said Sal Marino, AAR's Senior Vice President of Parts Supply.
The agreement has an initial term of three years, and AAR has made an initial provisioning order that ensures there is inventory in place to provide for the global distribution of Chromalloy's CF6-80C2 HPT Stage 1 and Stage 2 turbine blades.
For more information on AAR's products and services, visit aarcorp.com.
About AAR
AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the
About Chromalloy
Chromalloy is a leading provider of engineering, manufacturing and service for the aerospace, aero-derivative, and energy / industrial gas turbine aftermarket. For over 70 years, Chromalloy has been a trusted partner of airlines, aero-engine asset owners, and engine repair facilities. Chromalloy is a leader for FAA certified, third-party PMA and DER solutions to enable customer value during engine restoration and maintenance. The combination of alternative PMA new parts, DER part repairs, and inventory of used serviceable material (USM) enables each engine overhaul to achieve expected performance and achieve best value. Operating from over 20 locations worldwide, Chromalloy remains committed to having the right global team, available inventory, and a bias for addressing service needs for legacy and midlife engines. Our investments in design engineering, testing, and component manufacturing ensure that all regulatory and performance criteria are met or exceeded.
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 new engine parts supply 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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SOURCE AAR CORP.
FAQ
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