PARIS, June 16, 2015 /PRNewswire/ -- AAR (NYSE:
AIR), a world leader in airframe maintenance and supply chain
solutions, and South African Airways Technical (SAAT), the
maintenance division for the leading airline in Africa, South African Airways (SAA), have
signed a Memorandum of Understanding to establish a joint venture
partnership to reduce costs and increase operational efficiencies
of the airline's fleet. The joint venture will also focus on
growing SAAT's MRO services to third-party customers/airlines
across the continent.
Under the agreement, AAR will provide operational analysis and
technical assistance for MRO and warehouse facilities and integrate
IT solutions including AAR's 1MRO
Software Suite. AAR has a global reputation in the aviation sector
for improving operational efficiencies and turn times, as well as
lowering costs through its customer-centric solutions.
"We chose AAR to support us as we strengthen and grow our
world-class facility because of their experience and expertise in
this area," said Musa Zwane, CEO of
SAAT. "We are excited to develop a joint venture that will allow us
to reduce maintenance costs, increase fleet readiness levels for
our valued customers, and ultimately expand and serve West and
Central Africa."
AAR also will support expansion of SAAT's component repair
capabilities, including landing gear, and potentially support a new
MRO facility in West and Central
Africa to meet growing regional travel in sub-Saharan Africa
and increasing international travel to the continent.
The announcement was made Tuesday during a news conference at
the 51st International Paris Air Show at Le Bourget by AAR CORP.
Chairman and CEO David P. Storch and
SAAT CEO Musa Zwane. They were
joined by Marcus Jadotte, Assistant
Secretary for the U.S. Commerce Department, which has helped AAR
navigate the business, cultural and political landscape in
Africa under the White House's
Doing Business in Africa
initiative, for which Storch also serves on President's Advisory
Council.
"This joint venture is part of our efforts to further expand in
developing markets like Africa,"
said Storch. "We are excited to partner with Africa's premiere MRO to help them streamline
operations, reduce costs and expand service across the continent,
including countries like Nigeria
and Ghana."
"Africa is home to 6 of the top
10 fastest-growing countries in the world, and U.S. exports to
sub-Saharan Africa now top $21
billion a year. We help businesses like AAR tap into those
markets," said Jadotte. "We couldn't be more pleased to have AAR
and South African Airways Technical team up and go after
opportunities in Africa."
In addition to being the largest independent MRO in the United States, AAR's 1MRO Network also includes a component repair
shop in Amsterdam and a landing
gear overhaul facility in Malaysia. AAR was recently named Best Airframe
MRO Provider Worldwide by ATE&M, the third honor in the past
four years.
AAR's global network of warehouses servicing customers' supply
chain needs are located in Chicago, Singapore, Amsterdam and Hannover, Germany, with a new hub in
Brussels now serving Europe, the Middle
East and Africa, including
a power-by-the hour rotable support contract for Kenya Airways'
737NG fleet. The Company serves customers in more than 100
countries from sales and service offices around the world including
Airinmar, an inventory repair management company in the UK.
About SAA
South African Airways (SAA) is the leading carrier in Africa, serving 56 destinations, in
partnership with SA Express, SA Airlink and its low cost carrier,
Mango, within South Africa and
across the continent, and nine intercontinental routes from its
Johannesburg hub. It is a member
of the largest international airline network, Star Alliance. SAA's core business is the
provision of passenger airline and cargo transport services
together with related services, which are provided through SAA and
its wholly owned subsidiaries: SAA Technical; Mango its low cost
carrier; and Air Chefs, the catering entity of SAA. SAA is the
winner of the 'Best Airline in Africa' award in the regional category for 12e
consecutive years and the winner of 'Service Excellence Africa' for
three years. Mango and SAA hold the No. 1 and No. 2 two successive
spots as South Africa's most
on-time airlines.
About AAR
AAR is a global aerospace and defense company that employs more
than 5,000 people in over 20 countries. Based in Wood Dale, Illinois, AAR supports commercial,
government and defense customers through two operating segments:
Aviation Services and Expeditionary Services. AAR's Aviation
Services include inventory management; parts supply; OEM parts
distribution; aircraft maintenance, repair and overhaul; and
component repair. AAR's Expeditionary Services include airlift
operations; mobility systems; and command and control centers in
support of military and humanitarian missions. More information can
be found at www.aarcorp.com.
About DBIA
Through the Doing Business in Africa (DBIA) Campaign, the U.S. government is
strengthening its commercial relationship with the continent of
Africa, a diverse region that
offers substantial trade and investment opportunities across
national and regional markets. With a 5.4 percent growth rate
predicted for 2014, Africa is
outpacing global growth. U.S. goods and services exports to
Africa reached a record high of
$50.2 billion in 2013, up 40 percent
since 2009. These exports supported 250,000 U.S. jobs.
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, 2015. 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.
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