On Wednesday,
AAR Corp
(
AIR
) obtained Alaska Airlines ("Alaska") contract for providing
component repair and management services for its fleet of 87 Boeing
737-700, 800 and 900 aircrafts. Such a repair and overhaul service
contract toward a new cost-per-flight-hour program entails a
timeline of 10 years.
As per the contract terms, AAR will be providing Alaska with
reduced repair costs and increased component reliability integrated
with guaranteed turn times.
AAR Allen Asset Management's President, John Holmes was quite
excited about the renewal of AAR's long-standing partnership with
Alaska. He reminded of the company's successful track record
in providing Alaska with high-value services in operating safe and
cost-effective fleet.
Back in October 2011, AAR acquired Airinmar Holdings Limited
("Airinmar"), a leading provider of repair management services.
Presently, the program management of this new Alaska contract rests
in the hands of Airinmar.
The acquired London-based service provider, which is currently a
part of AAR's Aviation Supply Chain group, will now support AAR's
new Alaska contract with its systems and resources.
As per records, AAR's sales growth over time, has been primarily
driven by notable surge in the repair and overhaul service demand.
The strength at the company's supply chain business has already
been proved effective in delivering value to customers, in such a
scenario.
Building on its technical and financial capabilities, AARstrives
to reinforce its position in the industry, wherein the big banners
of the likes of
Goodrich Corp
(
GR
),
Boeing Co
(
BA
),
Lockheed Martin Corporation
(
LMT
) have revealed their successful play-offs.
We currently maintain a long-term 'Neutral' recommendation on
the stock. On the other hand, AAR carries a Zacks # 4 Rank, which
translates into a short-term (1-3 months) Sell' rating.
AAR CORP (
AIR
): Free Stock Analysis Report
BOEING CO (
BA
): Free Stock Analysis Report
GOODRICH CORP (
GR
): Free Stock Analysis Report
LOCKHEED MARTIN (
LMT
): Free Stock Analysis Report
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