WOOD DALE, Ill., Nov. 8, 2012 /PRNewswire/ -- AAR (NYSE: AIR) announced today that it has sourced and is modifying two Boeing 737-400 aircraft for Colombia's Air Force, Fuerza Aerea Colombiana (FAC). The program is expected to generate approximately $31 million in the second half of the Company's current fiscal year.
The program demonstrates AAR's wide range of capabilities, which the Company combines to create custom-tailored solutions for its commercial and defense customers. This program also marks the first time AAR has supplied assets and services for Colombia's Air Force.
"We presented the modified 737-400 platform bundled with AAR's maintenance and logistics support as the most efficient means to satisfy the FAC's air transport, cargo and personnel movement requirements," said Donald J. Wetekam, Senior Vice President, Government and Defense Business Development for AAR. "The program is based on a successful procurement and conversion program we originally developed for the U.S. Government and we are looking forward to implementing this cost-effective, custom solution for the Colombian Air Force."
AAR managed the aircraft transactions and will perform inspections and maintenance checks at the Company's Aircraft Services business in Miami. One of the aircraft is being converted from a passenger configuration into a combination passenger/freighter (combi) and the second into a freighter-only configuration. To perform the cargo conversions, AAR is working with cargo conversion provider, Pemco. Pemco has unique specialization approvals for performing this modification for the 737-400 combi platform.The program is based on a 737-400 sourcing and conversion program that AAR is performing for the U.S. Government, which combines multiple AAR capabilities including aircraft sourcing, maintenance and inspections, engine and landing gear work, parts provisioning and oversight of the conversion process. AAR is an industry leader at provisioning, maintaining and modifying the 737, an aircraft with a service life of 40+ years, low operating cost and high mission capabilities for governments, which provides increased value compared with the acquisition of new commercial or military transport aircraft.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV