AAR Mobility Systems awarded $173.5 million firm-fixed-price contract from U.S. Air Force to produce Next Generation All Aluminum Cargo Pallets
August 03 2022 - 4:30PM
AAR CORP. (NYSE: AIR), a leading provider of aviation services to
commercial and government operators, MROs, and OEMs, has been
awarded a firm-fixed-price (FFP) requirements contract from the
U.S. Air Force (USAF) to produce Next Generation All Aluminum Cargo
Pallets.
The basic contract period of performance is for 18 months with
eight 12 month options and one 6 month option. The total contract
value including option periods is $173.5 million.
“AAR currently produces and repairs the existing generation 463L
cargo pallets for the USAF to support its worldwide operational
requirements,” said Lee Krantz, AAR Senior Vice President, Mobility
Systems. “AAR is proud to continue the program with the next
generation pallet for many years to come.”
AAR also proudly provides legacy 463L systems cargo pallets to
other branches of the U.S. Armed Forces and continues to be a
leader in design and production. The next generation USAF
all-aluminum pallet design will use corrosion resistant aluminum
extrusions that are friction stir welded together, which is a form,
fit, and function replacement for the legacy 463L pallet. The next
generation pallet will continue to provide unparalleled
strength-to-weight performance and reliability compared to
alternative commercial pallet designs. The pallets are designed to
be loaded and off-loaded on a variety of military and commercial
aircraft. AAR will continue to supply legacy 463L pallets over the
next several years during the transition to the next generation
pallet.The Next Generation All Aluminum Cargo Pallets will be
manufactured in Cadillac, Michigan, by AAR Mobility Systems, which
specializes in the design and manufacture of mission-tailored
configurations, integration / modification, re-fit of mobile
shelter systems, internal slingable unit (ISU®) containers,
specialty pallets, and life-cycle support for governments,
militaries, and nonprofit organizations worldwide. For more
information about AAR Mobility Systems, visit
aarcorp.com/mobility-systems/.
About AARAAR is a global aerospace and defense
aftermarket solutions company with operations 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; and
Maintenance, Repair, and Overhaul (MRO) Services. AAR’s
Expeditionary Services include Mobility Systems operations.
Additional information can be found at 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
which reflect management’s expectations about future conditions,
including AAR continuing the program with the next generation
pallet for many years to come, AAR continuing to be a leader in
design and production, the next generation pallet continuing to
provide unparalleled strength-to-weight performance and reliability
compared to alternative commercial pallet designs, and AAR
continuing to supply legacy 463L pallets over the next several
years during the transition to the next generation pallet.
Forward-looking statements may also be identified because they
contain words such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘continue,’’
‘‘could,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘intend,’’ ‘‘likely,’’
‘‘may,’’ ‘‘might,’’ ‘‘plan,’’ ‘‘potential,’’ ‘‘predict,’’
‘‘project,’’ ‘‘seek,’’ ‘‘should,’’ ‘‘target,’’ ‘‘will,’’ ‘‘would,’’
or similar expressions and the negatives of those terms. 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. For
a discussion of these and other risks and uncertainties, refer to
“Risk Factors” in our most recent Annual Report on Form 10-K and
subsequent Quarterly Reports on Form 10-Q. 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. |
Media Team
AAR CORP.
+1-630-227-5100
editor@aarcorp.com
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