AAR Corp. (AIR) was selected by Bombardier Aerospace, Belfast to design and manufacture composite flap track fairings for the wings of the new CSeries family of commercial aircraft. The contract is expected to exceed $90 million over the life of the program.
The contract will be executed by AAR Composites, which develops and fabricates advanced composite structures for a wide range of aviation and aerospace applications.
The CSeries aircraft, Bombardier’s newest platform, is specifically designed for the 100- to 149- seat market. The aircraft will be built with 70% advanced lightweight structural materials, which contribute to the fuel efficiency, performance and extended range of the aircraft.
The company is constantly undergoing change, and it is likely that new products, equipment and methods of repair and overhaul services will be introduced in the future.
In 2009, the company announced the formation of AAR Global Solutions, a joint venture company that will provide value-added solutions for the U.S. and friendly foreign governments’ defense and nation-building initiatives.
Through this joint venture, AAR will be able to complement AAR’s MRO, logistics and mobility capabilities with a team that has extensive experience in winning and managing large-scale government programs as a prime contractor. We are bullish about the scope of the business as the bid pipeline is robust.
We reiterate our Neutral rating on the shares of AAR Corp. based on the belief that it will perform well in the coming months once the market recovers. The company’s strict cost control initiative is another benefit.
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