WOOD DALE, Ill., Nov. 17, 2016 /PRNewswire/ -- AAR (NYSE: AIR), a global leader in the aviation aftermarket, has entered into a long-term contract with Air New Zealand to provide nose-to-tail, cost-per-flight-hour rotable inventory support covering 740 parts and 15 of the airline's B777 aircraft. Under reciprocal terms of the agreement, Air New Zealand will become AAR's exclusive component repair provider for selected parts in the Asia-Pacific region and preferred supplier for selected parts worldwide.
This significant contract establishes a component inventory and repair partnership for AAR in the growing Asia-Pacific region with an AAA-rated carrier. It also marks AAR's first PBH agreement solely focused on the B777 aircraft, the flagship carrier and international workhorse connecting New Zealand to the rest of the world.
"This partnership complements AAR's in-house component repair facilities in the U.S. and Europe and extends our reach in the fast-growing Australasia region," said Deepak Sharma, President, AAR International Supply Chain. "We're proud to team up with an industry-leading long-distance carrier like Air New Zealand to help them create efficiencies with an integrated supply chain solution for their B777 fleet. This is the beginning of a win-win partnership that we hope will extend to other projects in the region and beyond."
Air New Zealand Chief Operations Officer Bruce Parton says the deal follows extensive market evaluation and is significant for the airline's Components business. "We are looking forward to working with a fast-growing partner in AAR that will help to drive a high volume of work and further the commercial success of Air New Zealand's components business."
AAR is a global aftermarket solutions company that employs more than 4,500 people in over 20 countries. Based in Wood Dale, Illinois, AAR supports commercial aviation and government customers through two operating segments: Aviation Services and Expeditionary Services. AAR's Aviation Services include inventory management; parts supply; OEM parts distribution; aircraft maintenance, repair and overhaul; and component repair. AAR's Expeditionary Services include airlift operations; mobility systems; and command and control centers in support of military and humanitarian missions. 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 Form 10-K for the fiscal year ended May 31, 2016. 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.