AAR to buy Aviation Worldwide for $200 mln

* Deal to add to earnings in first year

* To boost annual rev by $175 mln

Defense News: March 25 (Reuters) - Aircraft parts supplier AAR Corp (AIR.N) said it would buy privately held Aviation Worldwide Services (AWS) for $200 million to expand its services to government customers in the United States and abroad.

AAR, which serves customers in both commercial aviation and government/defense markets, said the business is expected to generate about $175 million of revenue annually and add to its earnings and margins within its first year of ownership.

The company said it would purchase AWS, a provider of expeditionary airlift services and aircraft modifications to government customers, from Xe Services LLC.

AWS operates a fleet of 58 customized aircraft through its subsidiaries Presidential Airways and STI Aviation.

AAR expects to fund the deal through a combination of available cash, a new 270-day syndicated credit facility and a five-year term loan secured against certain aircraft. (Reporting by A.Ananthalakshmi in Bangalore; Editing by Maju Samuel)

AAR to Perform Heavy Maintenance for Allegiant Air

Defense News ~ WOOD DALE, Ill., Jan. 14 /PRNewswire-FirstCall/ -- AAR (NYSE: AIR) announced today that it has signed a five-year agreement with Allegiant Air, LLC to provide maintenance and modification services for Allegiant's fleet of 46 MD-80 aircraft.
Scheduled maintenance work will be performed at AAR's MRO facilities in Miami and Oklahoma City. Additionally, AAR's Indianapolis facility will be available to support Allegiant's unscheduled maintenance requirements and Allegiant may request that AAR provide technical and engineering support services from various field locations. The contract builds upon an October 2008 agreement, under which AAR was contracted to perform maintenance on six of Allegiant's MD-80 aircraft.
"We've built an excellent working relationship with Allegiant and are pleased to be taking the MD-80 maintenance program to a new level," said Donald J. Wetekam, AAR's Group Vice President of MRO. "Our team is committed to providing reliable service with competitive turn times that will enable Allegiant to operate its fleet cost-effectively while maintaining their high levels of passenger service."
AAR leverages its diverse MRO, engineering and logistics capabilities to offer airlines customized, integrated solutions that lower costs, increase asset availability and ensure high levels of quality, safety and service. With heavy maintenance facilities located throughout the United States, AAR is the second largest independent MRO provider in North America and ranks among the top ten in the world.
A subsidiary of Allegiant Travel Company (Nasdaq: ALGT), Allegiant Air, LLC is a low-cost, high-efficiency, all-jet passenger airline focused on linking travelers in small cities to world-class leisure destinations such as Las Vegas, Phoenix, Los Angeles, Orlando, Fla., Tampa/St. Petersburg, Fla., and Fort Lauderdale, Fla.
AAR is a leading provider of products and value-added services to the worldwide aviation/aerospace industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve airline and defense customers through three operating segments: Aviation Supply Chain; Maintenance, Repair and Overhaul and Structures and Systems. More information can be found at www.aarcorp.com.
This press release contains 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. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled "Risk Factors", included in the Company's May 31, 2009 Form 10-K. 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 the Company's control.
The Company 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. For additional information, see the comments included in AAR's filings with the Securities and Exchange Commission.

AAR Strengthens Relationship With Sikorsky and Provides Manufacturing and Machining for S-92(R) and H-60 Helicopters

Defense News ~ WOOD DALE, Ill., Jan. 6 /PRNewswire-FirstCall/ -- AAR (NYSE: AIR) announced today that it has signed a Memorandum of Agreement (MOA) with Sikorsky Aircraft Corporation under which the two companies will work together to identify opportunities to expand their business relationship. In addition, AAR was named the exclusive supplier of composite interiors for the Sikorsky S-92® helicopter program and will provide precision machining services for S-92 helicopter flooring and a structural component of the H-60 helicopter airframe. The combined value of initial orders is approximately $18.8 million, with a potential contract value exceeding $60 million.
The MOA represents a formal agreement between AAR and Sikorsky to explore opportunities to align AAR's diverse engineering, manufacturing, maintenance and parts supply capabilities with Sikorsky's production and aftermarket support requirements. The fabrication of S-92 Offshore/Airline helicopter composite interiors will be performed by AAR Composites. Precision machining services will be provided by AAR Summa Technologies. Together, these AAR businesses offer a complete range of design engineering and manufacturing services for both advanced composite and metallic aerostructures.
"This MOA represents an important step in building our relationship with Sikorsky and strengthening AAR's reputation in the rotorcraft market," said Timothy J. Romenesko, President and Chief Operating Officer, AAR CORP. "We appreciate the opportunity to provide Sikorsky with high-value products and services for their S-92 and H-60 helicopter programs and look forward to working with them to explore additional opportunities to support their operations and aircraft."
AAR is currently under contract with Sikorsky to provide composite components for S-92 Search and Rescue helicopter interiors, S-92 VIP helicopter Interiors, S-92/H-92 helicopter ramp panels, CH148 helicopter Interiors and CH148 helicopter fairings and to produce machined components for H-60 aircraft.
AAR is a leading provider of value-added products and services to the worldwide aerospace and defense industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve aviation and government/defense customers through three operating segments: Aviation Supply Chain; Maintenance, Repair and Overhaul; and Structures and Systems. More information can be found at www.aarcorp.com.
Sikorsky Aircraft Corp., based in Stratford, Conn., is a world leader in helicopter design, manufacture and service. Sikorsky is a subsidiary of United Technologies Corp. (NYSE: UTX), which is based in Hartford, Conn., and provides a broad range of high technology products and support services to the aerospace and building systems industries.
This press release contains 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. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled "Risk Factors", included in the Company's May 31, 2009 Form 10-K. 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 the Company's control. The Company 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. For additional information, see the comments included in AAR's filings with the Securities and Exchange Commission.

AAR to Provide KC-10 Supply Chain Support as Member of Northrop Grumman Team

AAR ~ October 5, 2009,

WOOD DALE, Ill., Oct. 5 /PRNewswire-FirstCall/ -- AAR (NYSE: AIR - News) announced today that it has been selected to provide supply chain services and logistics support as a member of the Northrop Grumman team on the KC-10 Extender Contractor Logistics Support (CLS) program. AAR's portion of the indefinite delivery/indefinite quantity contract is valued at approximately $600 million over nine years. As a Northrop Grumman team member, AAR will provide an integrated supply chain program to support the ongoing maintenance and operations of the KC-10 program from facilities and air bases in the U.S. and overseas. The announcement was made following U.S. Air Force's selection of Northrop Grumman as the prime contractor for comprehensive depot maintenance and logistics for the U.S. Air Force's fleet of 59 KC-10 air refueling aircraft.
"This award builds upon the excellent relationship and reputation we've established with Northrop Grumman in providing supply chain solutions in support of the U.S. Air Force JSTARS and U.K. MoD E-3D Sentry programs," said David P. Storch, Chairman and Chief Executive Officer of AAR CORP. "We look forward to extending our strategic partnership with Northrop Grumman while providing outstanding support, contributing to the efficient operations, readiness and sustainment of the KC-10 program."
AAR's role on the Northrop Grumman team is to provide supply chain services that include strategic planning, parts procurement, distribution and repair to ensure aircraft availability and efficient operations while shortening maintenance lead times and minimizing downtime.
AAR is a leading provider of products and value-added services to the worldwide aerospace and defense industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve aviation and government/defense customers through three operating segments: Aviation Supply Chain; Maintenance, Repair and Overhaul; and Structures and Systems. More information can be found at www.aarcorp.com.
This press release contains 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. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled "Risk Factors", included in the Company's May 31, 2009 Form 10-K. 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 the Company's control. The Company 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. For additional information, see the comments included in AAR's filings with the Securities and Exchange Commission.