AAR and FTAI Aviation extend their exclusive Serviceable Engine Products agreement, providing CFM56 engine material to the global aviation aftermarket through 2030
Rhea-AI Summary
AAR CORP. (NYSE: AIR) has extended its exclusive Serviceable Engine Products agreement with FTAI Aviation through 2030, continuing their collaboration on CFM56 used serviceable material (USM). The partnership, initially established in 2020, involves AAR managing the teardown, repair, marketing, and sales of spare parts from FTAI's growing CFM56 engine pool of over 450 engines.
AAR has strengthened its capabilities by acquiring five additional global component repair facilities since the original agreement. This expansion enhances AAR's ability to support maintenance, repair, and overhaul of engine components. The collaboration serves the global aviation aftermarket and FTAI's Module Factory™, which specializes in modular repair and refurbishment of CFM56-7B and CFM56-5B engines.
Positive
- Extended exclusive agreement through 2030 secures long-term revenue stream
- Access to growing pool of over 450 CFM56 engines
- Expanded component repair capabilities through acquisition of 5 facilities
- Strong market position in growing CFM56 aftermarket segment
Negative
- None.
News Market Reaction 1 Alert
On the day this news was published, FTAI gained 0.46%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
The collaboration has made USM inventory available to the global aviation aftermarket and FTAI's consumption at the Module Factory™, a dedicated commercial maintenance center focused on modular repair and refurbishment of CFM56-7B and CFM56-5B engines. Through its worldwide network, AAR will manage the teardown, repair, marketing, and sales of spare parts from FTAI's CFM56 engine pool totaling over 450 engines and growing.
Since signing the original agreement in 2020, AAR expanded its Component Services footprint through the acquisition of five additional global component repair facilities. The additional capabilities enable AAR to support the maintenance, repair, and overhaul of a larger pool of engine components in support of this program.
"AAR is proud to be the exclusive service provider for this agreement with FTAI. The demand for this industry-leading engine platform continues to grow, and our collaboration supports the needs of the global aviation aftermarket," said John M. Holmes, AAR's Chairman, President and CEO. "AAR is pleased to combine our strong reputation for engine USM offerings, Component Services capabilities, and global sales team with FTAI's market position through 2030."
Joe
For more information on AAR's engine solutions, visit https://www.aarcorp.com/en/products/engine-solutions/.
About AAR
AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the
About FTAI Aviation
FTAI owns and maintains commercial jet engines with a focus on CFM56 and V2500 engines. FTAI's propriety portfolio of products, including the Module Factory and a joint venture to manufacture engine PMA, enables it to provide cost savings and flexibility to our airline, lessor, and maintenance, repair, and operations customer base. Additionally, FTAI owns and leases jet aircraft which often facilitates the acquisition of engines at attractive prices. FTAI invests in aviation assets and aerospace products that generate strong and stable cash flows with the potential for earnings growth and asset appreciation.
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 extended 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
View original content to download multimedia:https://www.prnewswire.com/news-releases/aar-and-ftai-aviation-extend-their-exclusive-serviceable-engine-products-agreement-providing-cfm56-engine-material-to-the-global-aviation-aftermarket-through-2030-302412621.html
SOURCE AAR CORP.
FAQ
What is the duration of AAR's (AIR) extended agreement with FTAI Aviation for CFM56 engine materials?
How many CFM56 engines are included in FTAI's engine pool managed by AAR (AIR)?
What services does AAR (AIR) provide under the CFM56 engine agreement?
How has AAR (AIR) expanded its capabilities since the original 2020 agreement?
