AAR to Consolidate North American MRO Footprint to Optimize Network Capacity
Aviation services company to transfer Hot Springs, Ark., MRO operations to Oklahoma City
WOOD DALE, Ill., June 30, 2015 /PRNewswire/ -- AAR (NYSE: AIR) announced that it will close its MRO facility in Hot Springs, Ark., and transfer operations to its Oklahoma City, Okla., facility as part of the Company's efforts to optimize its assets and improve return on invested capital for shareholders.
In response to overcapacity in North America, AAR will locate maintenance for regional aircraft in Oklahoma City by August to better align the capacity of AAR's 1MRO Network with current market demand. The employees working the two heavy maintenance lines in the 60,000-square-foot facility in Hot Springs will be offered employment at other AAR facilities. Customers should expect the same high level of quality and performance throughout AAR's five remaining facilities in the Company's MRO network, which was recently named the Best Airframe MRO Provider worldwide by ATE&M.
"The consolidation of our 1MRO Network is part of the Company's strategy to rationalize all of its business units with the objective of improving operating margins and shareholder returns," said John Holmes, Chief Operating Officer, Aviation Services. "It allows us to optimize the capacity of our North American footprint and focus on better integrating our maintenance, repair and supply chain offerings for customers."
About AAR
AAR is a global aerospace and defense company that employs more than 5,000 people in over 20 countries. Based in Wood Dale, Illinois, AAR supports commercial, government and defense 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, 2014. 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.
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SOURCE AAR
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