AAR Wins $105 M from US Navy for Contract Logistics Support of C-40A Clipper Aircraft

AAR (NYSE: AIR) was awarded a $104,970,967 five-year, fixed-price contract by the Naval Air Systems Command (NAVAIR) for fleet logistics support, including commercial depot support and site support, for the C-40A Clipper aircraft, a derivative of the Boeing 737-700 commercial airliner.

“We are honored by this selection and look forward to providing top-notch service to our U.S. Navy customer,” said John Holmes, Chief Operating Officer, Aviation Services. “This award further cements AAR’s position as a prime logistics sustainment provider in the government and defense marketplace.”

“AAR is a strong fit for this contract because we can utilize our broad range of services and facilities across the country to maintain the airframes from tip to tail,” said Don Wetekam, Senior Vice President, Government & Defense Programs. “And we will be partnering with United Airlines under their Part 121 certificate for technical parts and quality oversight.”

Heavy maintenance work on the C-40A aircraft, the newest commercial derivative medium lift aircraft used for Navy Unique Fleet Essential Airlift missions, will be performed at AAR’s Maintenance, Repair and Overhaul (MRO) facility at the Oklahoma City airport, with logistics being supported at five Naval Air Stations. AAR will also use its landing gear repair facility in Miami and component repair shop in New York to support the Navy fleet. AAR has contracted with Lockheed Martin Commercial Engine Solutions to provide engine repair work.

“This contract is a great example of how AAR can apply commercial aviation supply chain best practices to help the government increase efficiencies and decrease costs,” said David P. Storch, Chairman, President & CEO. “In this time of reduced budgets, government can rely on a trusted partner like AAR that has been providing aviation aftermarket services for more than 60 years.”