Benzinga | Dec 3, 2020 04:15PM EST

FTAI Aviation Announces Agreement with AAR for Serviceable Engine Products, a Partnership to Provide CFM56 Engine Material to Global Aviation Aftermarket

Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) announced an agreement with AAR CORP. (NYSE:AIR) 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.

"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.

"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.