| Type | Public (NYSE: AIR) |
|---|---|
| Industry | Aviation Aerospace & Defense |
| Founded | incorporated 1955 |
| Founder(s) | Ira A. Eichner |
| Headquarters | Wood Dale, IL, USA |
| Area served | Worldwide |
| Key people | David Storch (Chairman) & (CEO) Tim Romenesko (COO) |
| Revenue | US$1.35 Billion (FY 10)[1] |
| Operating income | US$91.2 Million (FY 10)[1] |
| Net income | US$44.6 Million (FY 10)[1] |
| Total assets | US$1.5 Billion (FY 10)[2] |
| Total equity | US$747 Million (FY 10)[2] |
| Employees | 5,800 (FY 10)[3] |
| Website | www.aarcorp.com |
AAR CORP. NYSE: AIR is an aviation support company. Founded in 1951, AAR provides a broad range of products and services to the aerospace and government/defense industries, with a nearly even split between them. Engineering and manufacturing products account for approximately a third of AAR’s business and aftermarket support services the remaining two-thirds.[3]
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Founded in 1951, I.A. Allen Industrial Sales was incorporated in 1955, renamed Allen Aircraft Radio in 1962 and became AAR CORP. in 1969.[4] AAR is headquartered in Wood Dale, Illinois, a Chicago suburb near O'Hare International Airport and employs approximately 6,500 people in 13 countries and at more than 60 locations around the world.[5]
AAR's customers include North American and international commercial airlines (passenger and freight); aircraft leasing companies; aviation support companies; OEMs; U.S. Department of Defense and their contractors; U.S. Department of State as well as other domestic government agencies; and foreign militaries.
AAR organizes its business in four main segments: Aviation Supply Chain; Government & Defense Services; Maintenance, Repair and Overhaul; and Structures and Systems.[6]
The Aviation Supply Chain segment serves commercial operators and OEMS. Services this segment provides include inventory acquisition, sale, and management; component repair; authorized distribution for OEMs; and sale or lease of both engines and aircraft.
The Government & Defense Services segment serves both US and foreign governments. Services in this segment provides include Performance-based logistics program support; expeditionary airlift and aircraft modifications; and advanced communication systems integration.
The Maintenance, Repair and Overhaul segment handles whole aircraft maintenance for both commercial airlines and government fleet operators. Activities include major airframe maintenance inspection and overhaul, painting services, line maintenance, airframe modifications, structural repairs, avionic service and installation, exterior and interior refurbishment and engineering services. The Maintenance and Repair and Overhaul segment also services landing gear, wheels and brakes at separate facilities.
The Structures and Systems segment designs, manufactures and repairs airdrop and other transportation pallets, containers and shelters for military and humanitarian deployments, in plane cargo systems, and advanced composite structures for the transportation industry. This segment also provides precision-machined custom orders and high-end sub-systems.
In 2007 AAR acquired three companies. First was Reebaire Aircraft[7], which became AAR Aircraft Services - Hot Springs. This complemented AAR's existing aircraft modification and overhaul facilities in Oklahoma City and Indianapolis—the new Arkansas facility being particularly suited to servicing regional aircraft. By April that year AAR completed the purchase of Brown International[8], which was redubbed AAR Integrated Technologies three years later[9]. In November AAR bought a third company for 2007: SUMMA Technology, Inc.[10]. In time AAR SUMMA Technology was integrated together with AAR Composites to become a single business under the name AAR Precision Systems.[11]
In 2008 AAR acquired Avborne Heavy Maintenance,[12] calling it AAR Aircraft Services - Miami.
In 2010 AAR acquired Aviation Worldwide Services (AWS).[13] AWS was composed of two operating subsidiaries: Presidential Airways and STI Aviation. The purchase was completed in April and by November AAR announced that the operations would move to Melbourne, Florida. In conjunction with that announcement, AAR announced that it is rebranding AWS as AAR Airlift Group, Presidential Airways as AAR Airlift, and STI Aviation as AAR Aircraft Services – Melbourne.[14]