WOOD DALE, Ill., Nov. 11, 2013 /PRNewswire/ -- AAR (NYSE: AIR) announces the Military Sealift Command (MSC) has exercised a second one-year renewal option for AAR's Airlift division to ferry critical supplies to U.S. Navy ships in the Western Pacific and Indian Oceans, and the Arabian Gulf.
Military Sealift Command is the leading provider of ocean transportation for the Navy and the U.S. Department of Defense, operating approximately 110 ships daily around the globe. Under the agreement, AAR will support MSC's vertical replenishment program (VERTREP), delivering supplies to support combatant ships at sea.
The contract renewal is valued at approximately $15 million, and includes the use of four helicopters, personnel, and operational and technical support services.
"AAR is proud to support national security by providing critical maritime solutions to Navy ships far from home," said Randy J. Martinez, President and CEO, AAR Airlift Group. "This renewal of a second one-year option reaffirms AAR's position as a preferred provider of airlift and logistics services to government and defense customers."The original contract, awarded to AAR in 2011, included a one-year initial base period, three one-year options and an additional 11-month option for an estimated total value of $77 million. AAR provides expeditionary airlift services in support of contingency operations worldwide. The Company currently operates a fleet of more than 50 fixed-wing and rotary-wing aircraft to transport personnel, supplies, and mail for the U.S. Department of Defense in Afghanistan and the Western Pacific. AAR, a global leader in aviation services and technology products for commercial and defense customers, will showcase its full range of capabilities at the Dubai Airshow, November 17-21, at Dubai World Central. AAR representatives will be available to brief reporters and bloggers on its Airlift and other services at its stand, #2118. About AAR AAR is a global aerospace and defense contractor that employs more than 6,000 people in 17 countries. Based in Wood Dale, Illinois, AAR supports commercial, government and defense customers through two operating segments: Aviation Services and Technology Products. AAR's services include inventory management and parts distribution; aircraft maintenance, repair and overhaul; and expeditionary airlift. AAR's products include cargo systems and containers; mobility systems and shelters; advanced aerostructures; and command and control systems. More information can be found at www.aarcorp.com. This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled "Risk Factors", included in the Company's Form 10-K for the fiscal year ended May 31, 2013. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company's control. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR's filings with the Securities and Exchange Commission. SOURCE AAR