AerSale® Expands Footprint with New Location in Millington, TN

Rhea-AI Summary

AerSale has opened a new 112,000 sq. ft. on-airport hangar at Millington-Memphis Airport, enhancing its MRO capabilities. Located near AerSale's 320,000 sq. ft. parts distribution facility in Memphis, the new location includes two narrow-body bays and supports maintenance, modifications, heavy MRO, aircraft storage, and disassembly. The facility features state-of-the-art equipment, a new parts paint booth, and office space. This expansion aims to provide cost-effective aftermarket solutions to airlines, leasing companies, and MRO providers. The strategic move supports AerSale's mission to deliver exceptional service and value, positioning it for future growth.

Positive

• AerSale's new 112,000 sq. ft. facility expands MRO capabilities.
• Strategic location near AerSale's 320,000 sq. ft. parts distribution facility.
• Facility includes state-of-the-art equipment and new parts paint booth.
• Supports maintenance, modifications, heavy MRO, aircraft storage, and disassembly.
• Enhances service delivery to airlines, leasing companies, and MRO providers.
• Positions AerSale for future growth in the aviation industry.

Negative

• No mention of immediate financial gains or cost savings from the expansion.
• Potential high costs associated with facility renovations and new equipment.
• Short-term operational disruption possible during the transition to the new facility.

Insights

Market Research Analyst

The opening of AerSale's new facility in Millington, Tennessee, indicates a strategic move to enhance their Maintenance, Repair and Overhaul (MRO) capabilities. This expansion reflects their commitment to providing comprehensive solutions in the commercial aviation sector. For retail investors, this could suggest AerSale is bolstering its infrastructure to meet increasing demand for aircraft maintenance and parts, potentially improving their market position.

AerSale’s selection of Millington as the location is noteworthy due to the proximity to their large parts distribution facility in Memphis. The presence of an 8,000 ft runway will facilitate handling of large aircraft, aligning with their operational needs. The new facility's focus on narrow-body aircraft maintenance, modifications and storage speaks to current market trends where narrow-body aircraft are predominantly used for short to medium-haul flights, which are currently on the rise as travel rebounds post-pandemic.

Investment implications: In the short term, investors might see increased operational costs due to the renovation and setup expenses, yet the long-term benefits could include enhanced service capabilities and potential revenue growth from expanded MRO services.

Financial Analyst

From a financial perspective, the new facility in Millington represents a capital investment aimed at expanding AerSale’s operational footprint. This could imply a near-term increase in capital expenditures, which might impact profitability metrics. However, the strategic location near their parts distribution facility in Memphis could result in operational efficiencies and cost savings over time.

Key financial insights: The addition of state-of-the-art equipment and facility upgrades will likely enhance service quality, potentially attracting more customers. Investors should monitor the impact of this expansion on AerSale’s balance sheet, particularly looking at capex and how it translates into revenue growth and margin improvement. The potential for new contracts and increased customer base could yield long-term positive financial outcomes.

Long-term outlook: If successful, this expansion can solidify AerSale’s competitive advantage in the MRO market, potentially leading to an increase in market share. The focus on narrow-body aircraft, a growing segment, supports optimistic revenue projections for the coming years.

• 112,000 sq. ft. on-airport hangar to facilitate additional commercial aircraft MRO activities
• Two narrow-body bays
• Located at Millington-Memphis Airport with an 8,000 ft. runway
• Strategically located close to AerSale’s 320,000 sq. ft. parts distribution facility in Memphis, TN

MIAMI--(BUSINESS WIRE)-- AerSale Corporation (NASDAQ: ASLE) (the “Company”), a leading provider of aviation products and services, proudly announces the opening of its newest location in Millington, Tennessee, with its first aircraft induction. This strategic expansion marks a significant milestone in AerSale's commitment to serving its customers and enhancing its MRO capabilities to better support the global commercial aviation industry.

Founded in 1917 the Millington-Memphis Airport (originally named Park Field) is one of the oldest airports in the United States and has a long legacy of training military aviation personnel dating back to World War I. More recently the base served as a major naval air technical training center that provided aviation specialty training for enlisted personnel in both the US Navy and Marine Corps. The airport hosts one of the longest runways in Tennessee and is conveniently located near AerSale’s 320,000 sq. ft. parts distribution facility in Memphis, TN.

This newest location has been renovated to support AerSale’s customers. The upgrades to the facility include improvements throughout the space, as well as the addition of state-of-the-art equipment, a new parts paint booth and office space. The 112,000 sq. ft. complex will cater to narrow-body maintenance, modifications, and heavy MRO activities, as well as aircraft storage and disassembly – augmenting AerSale’s already robust MRO operations in both Goodyear, AZ and Roswell, NM. Furthermore, the facility will offer MRO services for structural components and other aircraft parts.

"We are excited to announce the opening of our new facility in Millington, Tennessee. The easily accessible location, along with its 8,000 ft runway, will serve as a hub for AerSale's operations in the region, supporting our mission to provide cost-effective aftermarket solutions to airlines, leasing companies, and maintenance, repair, and overhaul (MRO) providers worldwide,” said Nicolas Finazzo, Chairman and Chief Executive Officer of AerSale. “This expansion reinforces our dedication to delivering exceptional service and value to our customers while strategically positioning AerSale for future growth.”

“We are delighted to extend a warm welcome AerSale as they join the Millington community," said Mike Gill, Airport Director at Millington Airport Authority. “Their investment in our community not only brings new opportunities for economic and employment growth, but it also underscores Millington's attractiveness as a location for aerospace businesses and reinforces our position as a hub for innovation and industry excellence. Historically, Millington Airport has been a vibrant training center for aircraft technicians, playing a crucial role in preparing skilled professionals who have contributed significantly to the aviation industry."

For more information about AerSale and its comprehensive range of aftermarket solutions, please visit www.aersale.com.

About AerSale

AerSale serves airlines operating large jets manufactured by Boeing, Airbus and McDonnell Douglas and is dedicated to providing integrated aftermarket services and products designed to help aircraft owners and operators to realize significant savings in the operation, maintenance and monetization of their aircraft, engines, and components. AerSale’s offerings include Aircraft & Component MRO, Aircraft and Engine Sales and Leasing, Used Serviceable Material sales, and internally developed ‘Engineered Solutions’ to enhance aircraft performance and operating economics (e.g. AerSafe®, AerTrak®, and the recently certified AerAware™ Enhanced Flight Vision System).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240607133002/en/

Media:

For more information about AerSale, please visit our website:www.AerSale.com.

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AerSale: Jackie Carlon Telephone: (305) 764-3200

Email: media.relations@aersale.com

Investor:

AerSale:AersaleIR@icrinc.com

Source: AerSale Corporation

FAQ

What is the new AerSale facility in Millington, TN?

AerSale has opened a new 112,000 sq. ft. on-airport hangar at Millington-Memphis Airport to enhance its MRO capabilities.

How will AerSale's new Millington facility impact its operations?

The facility supports maintenance, modifications, heavy MRO, aircraft storage, and disassembly, enhancing service delivery to airlines, leasing companies, and MRO providers.

Where is AerSale's new MRO facility located?

The new facility is located at Millington-Memphis Airport, near AerSale's 320,000 sq. ft. parts distribution facility in Memphis, TN.

What features does AerSale's new facility in Millington offer?

The facility includes state-of-the-art equipment, a new parts paint booth, and office space, and has two narrow-body bays.

How will AerSale's new Millington location benefit the company?

The expansion enhances AerSale's MRO capabilities and positions the company for future growth while providing cost-effective aftermarket solutions.