AAR signs letter of intent with Air Canada to add new aircraft types and establish airframe maintenance Center of Excellence at Trois-Rivières MRO location

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Feb 24, 2020, 13:06 ET

WOOD DALE, Ill., Feb. 24, 2020 /PRNewswire/ -- AAR (NYSE: AIR), a leading provider of aviation services to commercial and government operators, announced today that AAR Aircraft Services Trois-Rivières ULC ("AAR") has entered into a letter of intent with Air Canada regarding a ten-year, renewable agreement for airframe maintenance.

This long term agreement should enable AAR to develop an Airframe Maintenance Center of Excellence at its Trois-Rivières MRO in Quebec, Canada, and to expand its heavy maintenance services for Air Canada, which will stimulate new investment in aerospace and create more high-quality aircraft mechanic jobs.

The larger combined Airbus A330 fleet of Air Canada and Air Transat would allow Air Canada to move wide-body A330 maintenance work for both airlines from abroad to AAR in Trois-Rivières, in addition to maintaining and expanding AAR's airframe maintenance work in Quebec on the A320 family, including all new A321-neo aircraft. AAR currently performs airframe maintenance work in Trois-Rivières on Air Canada's existing A320 fleet and E190 fleet (which is being phased out).

The letter of intent is subject to completion of the Transat A.T. merger by Air Canada, requisite Board of Directors' approvals and completion of final agreements, including terms generally applicable to large-scale airframe maintenance agreements.

AAR intends to make necessary facility infrastructure investments in Trois-Rivières to develop a Center of Excellence and accommodate the new wide-body A330 work of the combined Air Canada and Air Transat fleet. Through this agreement, it is expected that incremental aerospace jobs will be created in Trois-Rivières and AAR's new capabilities will attract airframe maintenance work from other A330 operators.

"From our very first project in Trois-Rivières, we've seen a strong commitment to quality, safety and operational performance," said Rich Steer, Senior Vice-President, Operations, Air Canada. "With our largest hub a short distance away, we're excited to have a trusted partner like AAR with a similar commitment to excellence, and also proud to be supporting heavy maintenance work in Quebec, especially on wide-body aircraft. This contract for additional work in Trois-Rivières represents a long-term investment in increased airframe maintenance in Quebec."

"We are honored to work closely with a premier carrier like Air Canada for so many years and to be chosen as their maintenance provider for both the A330 and A320 family fleet types," said Chris Jessup, Chief Commercial Officer, AAR. "AAR is proud to support the Canadian economy and to grow our overall footprint in Trois-Rivières, especially for the A330."

For more information on AAR MRO Services, visit aarcorp.com/mro/.

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; and Maintenance, Repair and Overhaul (MRO) Services. AAR's Expeditionary Services include Mobility Systems and Composite Manufacturing operations. Additional information can be found at www.aarcorp.com.

About AAR Aircraft Services
AAR Aircraft Services is a full-service aircraft maintenance, repair and overhaul (MRO) provider, wholly owned and operated by AAR Corp. with over 290,000 sf of facilities in Trois-Rivières, Quebec and Windsor, Ontario, along with facilities in the United States. AAR took over Premier Aviation's facilities in Trois-Rivières and Windsor in 2017. Since inception in 2002, the Trois-Rivières facility has experienced a steady growth of clients and services in general maintenance overhaul, modifications, refurbishment and paint requirements. In 2012, the Trois-Rivières facility started to perform MRO services for some of Air Canada's Embraer fleet, including painting and supporting back shops. AAR expanded Trois-Rivières MRO competencies in 2017 by performing all MRO services on Air Canada's Airbus A319, A320 and A321 aircraft. In September 2017, Air Canada awarded a ten-year contract to AAR for the maintenance of its 125 Airbus A320 and Embraer E190 single-aisle aircraft at the AAR facilities in Trois-Rivières, contributing to the continuance of 350 specialized jobs. This work was transferred to Quebec from AAR's Duluth, Minnesota facility.

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, 2019. 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.

SOURCE AAR