Air Canada and AAR Conclude $500M CAD Agreement for Airframe Maintenance in Québec, Canada

· Work on 125 Airbus and Embraer aircraft to be performed in Trois-Rivières, Québec

· Further strengthens airframe maintenance, repair and overhaul expertise in Canada

TROIS-RIVIÈRES, QC, September 19, 2017 – Global aviation services leader AAR CORP. (NYSE: AIR) and Air Canada (TSX: AC) today announced they have signed a 10-year agreement to provide airframe maintenance for the airline’s Airbus narrow-body fleet of A319, A320 and A321 aircraft, as well as a new five-year agreement for Air Canada’s Embraer E-190 fleet. AAR will perform the work at its Maintenance, Repair and Overhaul (MRO) facility at Trois-Rivières Airport in Québec, previously known as Premier Aviation.

The work to be performed on Air Canada’s fleet of 125 narrow bodies will require approximately 350 aircraft mechanics at AAR’s Trois-Rivières facility. The total value of the contract over its term is estimated to be approximately $500 million CAD.

“We have been very pleased with the quality and turnaround time of AAR and the Trois-Rivières facility for the work performed on our narrow-body fleet over the past five years, and are especially delighted that additional work can now be performed in Trois-Rivières Québec,” said Richard Steer, Senior Vice President, Operations at Air Canada. “This contract further supports the development of Québec’s aviation sector by encouraging industry expertise and job growth in the coming years, and Air Canada isproud to be a significant contributor to the economy of the region.”

“We are honored by Air Canada’s confidence in AAR’s airframe heavy maintenance expertise, and look forward to continuing our long-term relationship,” said Chris Jessup, Chief Commercial Officer, AAR.