AAR wins five-year commercial supply chain contract to procure, manage, and source materials for major airline fleet

WOOD DALE, Ill., 12 Dec. 2013. AAR (NYSE:AIR) will become the sole supplier of roughly 25,000 consumable and expendable line-item parts for an unnamed commercial airline customer under a five-year contract valued at $42 million in annual revenue. AAR will take the place of more than 150 suppliers, officials say.

AAR, acting as an aggregator, will procure and manage the parts and provide them to the customer’s main warehouse facility as required. In doing so,. AAR will provide additional value through guaranteed fill rates that will be achieved by streamlining supply chain processes that include material planning, inventory control and receiving inspections.

“By aggregating the spending on materials with other programs managed by AAR, we can provide better pricing and improved service reliability,” explains John M. Holmes, AAR’s Group Vice President — Aviation Supply Chain. “We look forward to delivering a cost-effective and sustainable solution and to serving as a single point of contact for an extensive selection of consumable and expendable parts.”

AAR will leverage supply-chain processes and expertise developed supporting commercial and defense customers and its own MRO operations.

AAR currently supports the customer with a wide range of services including landing gear overhauls, aircraft maintenance and modifications, component repair services, engineering services, and ULD and engine parts supply.

Airline image courtesy Shutterstock.