AAR (NYSE: AIR) announced today that it has been awarded a task order from the U.S. Transportation Command (USTRANSCOM) to provide airlift support for U.S. Department of Defense operations in Afghanistan. The task order has an initial base period that runs through May 31, 2012 and three one-year renewal options with an estimated total value of $240 million. AAR was awarded all the work that it bid for this multi-year program.
The task order calls for the renewal of 10 fixed-wing aircraft that the Company currently operates in the region and the addition of two aircraft, scheduled to enter into service October 1, 2011. On Friday, June 24, USTRANSCOM issued an announcement that included funding for the initial base period of approximately $49 million for the 12 aircraft.
"This award reflects the U.S. Transportation Command's confidence in AAR's transportation and logistics capabilities and we are extremely proud to help mobilize and support operations in a variety of austere and challenging environments," said David P. Storch, Chairman and Chief Executive Officer, AAR CORP.
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