Profile: AAR Corp (AIR)
6 May 2015
AAR CORP., incorporated on April 11, 1966, is a diversified provider of products and services to the worldwide commercial aviation and government and defense markets. The Company operates in two segments: Aviation Services, which consists primarily of business activities conducted through AAR Parts Trading, Inc., AAR Aircraft & Engine Sales & Leasing, Inc., AAR Aircraft Services, Inc., AAR Allen Services, Inc. (a wholly owned subsidiary of AAR Parts Trading, Inc.), AAR Airlift Group, Inc. and AAR International, Inc., and Technology Products, which consists primarily of business activities conducted through AAR Manufacturing, Inc., AAR International, Inc., Nordisk Aviation Products AS and Telair International GmbH.
The Company’s products services include aviation supply chain and parts support programs; maintenance, repair and overhaul of aircraft and landing gear; design and manufacture of specialized mobility and cargo systems and composite and other precision machined structures; expeditionary airlift services, and aircraft modifications and aircraft and engine sales and leasing.
The Company’s customers for its products and services in the Aviation Services segment are domestic and foreign commercial airlines, domestic and foreign freight airlines, regional and commuter airlines, business and general aviation operators, original equipment manufacturers (OEMs), aircraft leasing companies, aftermarket aviation support companies, the Department of Defense (DoD) and its contractors, the United States Department of State, and foreign military organizations or governments. In the Technology Products segment, its principal customers include the DoD and its contractors, foreign governmental and defense organizations, domestic and foreign commercial airlines, domestic and foreign freight airlines, OEMs, large system providers, and other industrial entities.
The Aviation Services segment provides aftermarket support and services for the commercial aviation and government and defense markets. In this segment, the Company provides inventory management and distribution services, overhaul, repair and engineering services, and expeditionary airlift services. It sells and leases a range of overhauled and repaired engine and airframe parts and components to its commercial and defense customers. It is also an authorized distributor for more than 70 aviation product manufacturers.
The Company provides inventory supply and management, warranty claim management, and outsourcing programs for engine and airframe parts and components in support of its airline customers' maintenance activities. The types of services provided under these programs include material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul.
The Company also provides performance-based logistics programs in support of the United States Department of Defense (DoD) and foreign governments. The types of services provided under these programs include material planning, sourcing, logistics, information and program management, airframe maintenance and maintenance planning, and component repair and overhaul.
The Company provides airframe maintenance inspection and overhaul, painting services, line maintenance, airframe modifications, structural repairs, avionic service and installation, exterior and interior refurbishment, and engineering services and support for many types of commercial and military aircraft. It also repairs and overhauls landing gears, wheels, and brakes for commercial and military aircraft.
The Company operates six airframe maintenance facilities and one landing gear overhaul facility. Its airframe maintenance facilities are in Indianapolis, Indiana; Oklahoma City, Oklahoma; Duluth, Minnesota; Miami, Florida; and Lake Charles, Louisiana and a regional aircraft maintenance facility in Hot Springs, Arkansas. Its landing gear overhaul facility is in Miami, Florida, where it repairs and overhauls landing gear, wheels, brakes, and actuators for different types of commercial and military aircraft.
The Company provides expeditionary airlift services to the United States and other government customers. Its airlift services provide fixed- and rotary-wing flight operations, transporting personnel and cargo principally in support of the United States Department of Defense. It operates a fleet of fixed- and rotary-wing aircraft, principally in Afghanistan, Northern Africa and Western Pacific regions. It holds FAR Part 133 and 135 certificates to operate aircraft and a FAR Part 145 certificate to operate a repair station. Activities in its Aviation Services segment also include the sale and lease of used commercial aircraft.
Activities in the Company’s Technology Products segment include the design, manufacture, and repair of transportation pallets, and a range of containers and shelters used in support of military and humanitarian tactical deployment activities. The containers and shelters are used in many requirements, including armories, supply and parts storage, refrigeration systems, tactical operation centers, briefing rooms, laundry and kitchen facilities, water treatment, and sleeping quarters. It also designs and manufactures transportation pallets and a range of containers used in commercial airlines.
In this segment, the Company designs, manufactures, and installs in-plane cargo loading and handling systems for commercial aircraft, military aircraft, and helicopters. It is a provider of machined and fabricated parts, components, and sub-systems for various aerospace and defense programs and other applications. The Company designs and manufactures advanced composite materials for commercial, business, and military aircraft. It provides engineering, design, and system integration services for specialized command and control systems.
1100 N Wood Dale Rd
WOOD DALE IL 60191