Benzinga | Dec 3, 2020 04:43PM EST

ARR Announces Agreement With FTAI For Serviceable Engine Products, A Partnership To Provide CFM56 Engine Material To The Global Aviation Aftermarket

AAR announces agreement with FTAI for Serviceable Engine Products, a partnership to provide CFM56 engine material to the global aviation aftermarket

Wood Dale, Dec. 03, 2020 (GLOBE NEWSWIRE) -- AAR (NYSE:AIR), a leading provider of aviation services, and Fortress Transportation and Infrastructure Investors (NYSE:FTAI) announced an agreement to create Serviceable Engine Products, an exclusive seven-year CFM56 used serviceable material ("USM") partnership.

The partnership will build USM inventory for the global aviation aftermarket and FTAI's own consumption at The Module Factory(tm), a dedicated commercial maintenance center focused on modular repair and refurbishment of CFM56-7B and CFM56-5B engines. Through its worldwide network, AAR will manage the teardown, repair, marketing and sales of spare parts from FTAI's CFM56 engine pool totaling over 200 engines and growing.

"AAR is very pleased to partner with FTAI, a leader in aircraft engine ownership, by leveraging our extensive USM capabilities to offer CFM56 serviceable engine material to the global commercial aviation aftermarket. This partnership positions us well to service the growing demand for USM on a leading engine platform as customers increasingly prioritize more cost-efficient solutions," said John Holmes, AAR President and Chief Executive Officer.

"We are excited to offer an attractive USM solution to the CFM56 aftermarket with our partner AAR, the independent market leader in aviation parts. We believe Serviceable Engine Products, combined with our proprietary products and partnerships, completes our unique suite of CFM56 aftermarket offerings aimed at delivering the lowest cost per cycle solution to our airline customers," said Joe Adams, FTAI's Chairman and Chief Executive Officer.

For more information on AAR Parts Supply, visit aarcorp.com/parts-supply-/

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About AAR

AAR is a global aerospace and defense aftermarket solutions company with operations 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 operations. Additional information can be found at www.aarcorp.com.

About Fortress Transportation and Infrastructure Investors LLC

Fortress Transportation and Infrastructure Investors LLC owns and acquires high quality infrastructure and equipment that is essential for the transportation of goods and people globally. FTAI targets assets that, on a combined basis, generate strong and stable cash flows with the potential for earnings growth and asset appreciation. FTAI is externally managed by an affiliate of Fortress Investment Group LLC, a leading, diversified global investment firm.

This press release contains certain statements relating to future results,which are forward-looking statements as that term is defined in the PrivateSecurities Litigation Reform Act of 1995, including, but not limited to,statements regarding the agreement to establish The Module Factory, AAR'sestimate that it will manage the teardown, repair, marketing and sales of spareparts of FTAI's CFM56 engine pool totaling over 200 engines and growing, AAR'sability to leverage its extensive USM capabilities to offer CFM56 serviceableengine material to the global commercial aviation aftermarket, that thepartnership positions AAR well to service the growing demand for USM on aleading engine platform as customers increasingly prioritize morecost-efficient solutions, and the belief that serviceable engine products,combined with FTAI's proprietary products and partnerships, completes itsunique suite of CFM56 aftermarket offerings aimed at delivering the lowest costper cycle solution to airline customers. Forward-looking statements may also beidentified because they contain words such as ??anticipate,'' ??believe,''??continue,'' ??could,'' ??estimate,'' ??expect,'' ??intend,'' ??likely,''??may,'' ??might,'' ??plan,'' ??potential,'' ??predict,'' ??project,''??seek,'' ??should,'' ??target,'' ??will,'' ??would,'' or similar expressionsand the negatives of those terms. These forward-looking statements are based onbeliefs of Company management, as well as assumptions and estimates based oninformation currently available to the Company, and are subject to certainrisks and uncertainties that could cause actual results to differ materiallyfrom historical results or those anticipated, including those factors discussedunder Item 1A, entitled "Risk Factors", included in the Company's Form 10-K forthe fiscal year ended May 31, 2020. Should one or more of these risks oruncertainties materialize adversely, or should underlying assumptions orestimates prove incorrect, actual results may vary materially from thosedescribed. These events and uncertainties are difficult or impossible topredict accurately and many are beyond the Company's control. The Companyassumes no obligation to update any forward-looking statements to reflectevents or circumstances after the date of such statements or to reflect theoccurrence of anticipated or unanticipated events. For additional information,see the comments included in AAR's filings with the Securities and ExchangeCommission.





Daniela PietschAAR Corp+1 630 227 5100editor@aarcorp.com