AAR Announces Joint Venture with Indamer for New MRO Facility in India

WOOD DALE, Illinois, February 8, 2018 – AAR (NYSE: AIR), a global provider of aviation services to commercial airlines, announced a joint venture with Indamer Aviation, a leading aviation company in India, for the development of a new airframe maintenance, repair and overhaul (MRO) facility in Nagpur, India.

The new MRO facility, which is already under construction, will initially be comprised of six narrow-body bays, including one bay for paint. Additional phases are planned for a total of 16 bays, as well as component repair shops.

The MRO will serve India’s fast-growing commercial aviation market and is scheduled to open in the fall with FAA, EASA and DGCA certifications. Fully aligned with the ‘Make In India’ initiative, the facility will employ Indian nationals, including some of the existing Indamer workforce. A training school under Indamer’s CAR 147 certification and the Government of India’s Skill Development Program will allow hundreds of students to gain skill sets and employment in Nagpur. The initial group of students will receive practical training at one of AAR’s MRO facilities in the United States.

“We are excited to expand AAR’s MRO expertise outside of the Americas in partnership with Indamer, which has the local market and cultural knowledge needed for success,” said John Holmes, President & Chief Operating Officer, AAR. “We are looking forward to bringing our MRO experience to central India to help serve the country’s fast-growing airlines.”

“When we started planning for a new MRO in India, we knew we wanted to leverage the experience of a leading, independent MRO that had been successful in more mature aviation markets,” said Rajeev Gupta, Indamer Aviation CEO. “AAR is the ideal partner for us and brings the knowledge and processes needed to help establish in-country capability and jobs in aircraft heavy maintenance.”

“AAR has been embraced by the country’s airlines and supported by the ‘Make In India’ initiative, and we are proud to be part of the next generation of aviation support in this region,” said Rahul Shah, Senior Vice President of AAR.