AAR signs new engine parts supply agreement with Chromalloy
Rhea-AI Summary
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.
Positive
- Secured exclusive global distribution rights for Chromalloy's CF6-80C2 engine parts
- Expanded aftermarket solution offerings portfolio
- Initial inventory already secured through provisioning order
Negative
- account coverage due to Chromalloy's pre-existing customer agreements
News Market Reaction 1 Alert
On the day this news was published, AIR gained 0.79%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
"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. |
Contact:
Media Team
+1-630-227-5100
Editor@aarcorp.com
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SOURCE AAR CORP.
FAQ
What is the duration of AAR's (AIR) distribution agreement with Chromalloy?
What specific parts will AAR (AIR) distribute under the Chromalloy agreement?
Is AAR (AIR) the exclusive distributor for Chromalloy's CF6-80C2 engine parts?
