September 9, 2019 | International, Aerospace, Naval

AAR secures $118M C-40 aircraft procurement and modification contract with Naval Air Systems Command in support of U.S. Marine Corps

WOOD DALE, Ill., Sept. 6, 2019 /PRNewswire/ -- AAR (NYSE: AIR), a leading provider of aviation services to commercial airlines and governments worldwide, has secured a new $118.6 million contract with the Naval Air Systems Command (NAVAIR) to deliver two 737 aircraft and associated support equipment to the U.S. Marine Corps (USMC).

The firm-fixed price contract, estimated to last two years, entails the acquisition, modification, acceptance and delivery of two 737-700 Increased Gross Weight (IGW) series commercial aircraft. The aircraft will meet USMC C-9B replacement medium lift requirements and be designated as C-40A aircraft when delivered. AAR leveraged expertise across its Government Programs, Parts Supply and MRO activities within the Aviation Services segment to deliver this innovative solution to NAVAIR.

"We are honored to be selected by NAVAIR to manage the procurement, upgrade modification and delivery of these aircraft," said John Holmes, AAR President and CEO. "This integrated solution delivers an outstanding product focused on cost efficiency that directly aligns with the Secretary of the Navy's recently announced initiative to achieve greater output and faster turnaround times for their dollars spent. AAR is excited to promote this innovative partnership to all areas of government to highlight the benefits of utilizing commercial aftermarket solutions to meet military requirements."

The aircraft will be certified in accordance with the 14 Code of Federal Regulations (CFR) Part 25 (airworthiness standards) in three aircraft configurations, all-passenger, all-cargo and a combined-passenger-cargo configuration.

"Our engineered approach seamlessly delivers a comprehensive solution from across AAR's businesses that combines best practices from our industry-leading repair, engineering services and supply chain solutions," said Nick Gross, AAR Senior Vice President of Government Solutions. "We are eager to see these aircraft delivered for service in support of the Navy and Marine Corps."

AAR will manage the program and provide parts distribution from the company's headquarters in Wood Dale, Illinois, perform engineering out of the Indianapolis MRO facility, and provide maintenance and modification services at the Oklahoma City MRO and Miami Landing Gear Services facilities.

For further detail on the contract award, please view the U.S. Navy's public announcement here.

About AAR
AAR is a global aerospace and defense aftermarket solutions company that employs more than 6,000 people in over 20 countries. Headquartered in the Chicago area, AAR supports commercial and government customers through two operating segments: Aviation Services and Expeditionary Services. AAR's Aviation Services include Parts Supply; OEM Solutions; Integrated Solutions; maintenance, repair, overhaul; and engineering. AAR's Expeditionary Services include Mobility Systems and Composite Manufacturing operations. Additional information can be found at www.aarcorp.com.

https://www.prnewswire.com/news-releases/aar-secures-118m-c-40-aircraft-procurement-and-modification-contract-with-naval-air-systems-command-in-support-of-us-marine-corps-300913204.html

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AAR secures $118M C-40 aircraft procurement and modification contract with Naval Air Systems Command in support of U.S. Marine Corps

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