AAR Wins U.S. Contracts, Showcases Global Reach
Aerospace and defense contractor AAR (Stand 2118) has announced new contracts with U.S. government agencies. Here at the Dubai Airshow, the company is emphasizing its increasing global reach.
The U.S. Defense Logistics Agency selected AAR to provide specialized shipping containers, shelters and accessories for use by U.S. military and federal agencies. The company expects the sole-source indefinite delivery/indefinite quantity contract with its Mobility Systems business will generate revenue of $200 million to $250 million over its five-year term, which includes three one-year renewal options.
AAR said the new equipment is critical to U.S. military, Coast Guard and federal civilian agency and humanitarian aid operations. AAR Mobility Systems will manufacture the products at its Cadillac, Michigan and Goldsboro, North Carolina facilities. It will provide sustainment support from service depots in Cadillac and Fayetteville, North Carolina. Field level repairs will be conducted at customer locations.
AAR also announced that the U.S. Transportation Command has exercised a renewal option valued at $156 million for airlift support in Afghanistan through next October. The command first awarded the contract in September 2010. AAR said it will meet the requirements using 10 helicopters from its fleet.
AAR’s Airlift division offers expeditionary airlift services and specialized aircraft modifications that can be used to support national security and humanitarian relief operations. Under current contracts, the company provides airlift for the U.S. Department of Defense in three regions around the world, transporting personnel, supplies and mail over land and at sea. It is the largest independent operator of airlift services to the DOD in Afghanistan.
At the Dubai Airshow, AAR will highlight its expanding worldwide capabilities. In recent years, the company has acquired parts supply warehouses in Amsterdam and Singapore and a component repair facility in Germany.
Rahul Shah, senior vice president and managing director of Middle East, Africa and India operations is attending the Dubai Airshow, along with executives representing AAR’s Supply Chain and Airlift divisions and its Telair, Nordisk and Airinmar subsidiaries.