AAR and Air France Industries KLM Engineering & Maintenance complete formation of xCelle Asia joint venture

Rhea-AI Summary

AAR (NYSE: AIR) and Air France Industries KLM Engineering & Maintenance completed formation of xCelle Asia on Dec. 10, 2025, including regulatory approval.

The joint venture, based in Chonburi, Thailand, will perform nacelle maintenance, repair, and overhaul for next‑generation aircraft and engines and is licensed by multiple OEMs to support on‑wing/on‑site inspections and rotable support for GEnx, Trent1000, LEAP‑1A/1B engine types. xCelle Asia builds on AAR and AFI KLM E&M's existing Americas joint venture and is intended to expand nacelle MRO capacity and customer support across the APAC region.

Positive

• Formation of xCelle Asia completed with regulatory approval on Dec. 10, 2025
• Chonburi, Thailand site expands AAR/AFI KLM E&M presence in APAC
• Licensed to service GEnx, Trent1000, LEAP‑1A/1B nacelles
• Builds on existing Americas joint venture experience

Negative

• None.

Market Reality Check

$84.34 Last Close

Volume Volume 277,505 is below the 20-day average of 347,682 (relative volume 0.8x). normal

Technical Shares at $79.47 were trading above the 200-day MA of $71.35, about 11% below the $89.69 52-week high.

Peers on Argus

AIR was down 2.05% while close peers showed mixed moves: TGI (+0.7%), PL (+1.74%), SPR (+0.92%), and decliners like VSEC (-2.86%) and MRCY (-0.31%). This points to a stock-specific move rather than a broad sector trend.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 04	CFO transition	Neutral	-1.3%	Interim CFO appointment following outgoing CFO’s departure for another opportunity.
Nov 25	Customer contract win	Positive	+3.6%	Pan Am selected Trax eMRO and eMobility platform for maintenance operations.
Nov 18	Sustainability report	Positive	+1.0%	Release of 2025 Sustainability Report outlining ESG and risk management efforts.
Nov 18	Employer recognition	Positive	-1.5%	Inclusion in Forbes’ America’s Dream Employers 2026 list based on survey data.
Nov 11	Employer recognition	Positive	+0.6%	Awarded 2026 Military Friendly Gold Employer and Military Friendly Spouse designations.

Pattern Detected

Operational and customer contract wins have generally led to modest positive reactions, while recognition/HR-related news has shown more mixed or slightly negative price responses.

Recent Company History

Over the last month, AAR has reported leadership transition at the CFO level, new customer adoption of its Trax maintenance platform, publication of its 2025 Sustainability Report, and multiple employer-recognition awards. Price reactions ranged from about -1.5% to +3.6%, with operational wins like the Trax selection seeing the strongest upside. Against this backdrop, the xCelle Asia joint venture extends AAR’s service footprint, fitting into a pattern of strategic expansion alongside recent acquisitions and platform deployments.

Market Pulse Summary

This announcement highlights AAR’s strategy to broaden its nacelle maintenance capabilities through xCelle Asia, targeting next‑generation aircraft for operators in the APAC region. It complements prior moves such as acquisitions and new customer platform wins disclosed in recent filings and press releases. Investors may watch for future updates that quantify volumes, revenue contribution, and integration progress, as well as how this venture interacts with AAR’s existing Americas joint venture and broader MRO network.

Key Terms

mro technical

"a leading provider of aviation services to commercial and government operators, MROs, and OEMs"

MRO stands for Maintenance, Repair, and Operations, referring to the supplies and services companies provide to keep machinery, buildings, and infrastructure functioning smoothly. These essentials are vital for ongoing business activities, much like routine car maintenance keeps a vehicle running reliably. Investors pay attention to MRO companies because their performance reflects the health of industries that rely heavily on regular upkeep and support services.

oems financial

"a leading provider of aviation services to commercial and government operators, MROs, and OEMs"

OEMs, or Original Equipment Manufacturers, are companies that produce the main components or products that other companies use to build finished goods. For investors, OEMs are important because their performance can influence the supply chain, manufacturing costs, and overall market trends in industries like technology, automotive, and electronics. Their success often reflects broader economic health and consumer demand.

nacelles technical

"this joint venture... will overhaul nacelles for new generation aircraft"

Nacelles are the enclosed housings that hold and protect major machinery—most often aircraft engines or the generator and gearbox on a wind turbine—similar to the hood of a car covering the engine. Investors watch nacelles because their design, materials and maintenance affect performance, fuel or energy efficiency, safety and repair costs, all of which influence operating expenses, revenue potential and regulatory compliance for companies in aviation and renewable energy.

AI-generated analysis. Not financial advice.

WOOD DALE, Ill. and PARIS and AMSTELVEEN, Netherlands and CHONBURI, Thailand, Dec. 10, 2025 /PRNewswire/ -- AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, MROs, and OEMs, and Air France Industries KLM Engineering & Maintenance (AFI KLM E&M), a multi-product airline MRO, announced today the completion of the formation of xCelle Asia, which included the receipt of regulatory approval. This previously announced joint venture, located in Chonburi, Thailand, will overhaul nacelles for new generation aircraft.

Building on the success of AAR and AFI KLM E&M's existing joint venture in the Americas, xCelle Asia will provide unparalleled service and support for operators in the APAC region. Licensed by multiple OEMs, xCelle Asia can perform nacelle maintenance, repair, and overhaul services, including on-wing / on-site inspections, and rotable support for next generation aircraft nacelles, including GEnx, Trent1000, LEAP-1A/1B engine types. Other new generation aircraft and engine types will follow.

"This joint venture markedly expands our service offerings in the Asia-Pacific region and furthers our ability to deliver high quality, industry leading solutions to our customers," said Jim Berberet, Senior Vice President of Component Services at AAR. "We are looking forward to replicating our current success in the Americas by combining the experience of AAR's highly regarded Component Services team in Thailand with AFI KLM E&M's global network." 

"The creation of xCelle Asia represents a major step forward in strengthening our global MRO network. By expanding our nacelle capabilities into the Asia-Pacific region, we are positioning ourselves to deliver world-class, next-generation support closer to our customers. This new venture reflects our commitment to innovation, sustainability, and operational excellence, and we are proud to bring our expertise to one of the world's most dynamic aviation markets," stated Benjamin Moreau, Senior Vice President of Strategy and Business Development at AFI KLM E&M. 

About xCelle Asia
xCelle Asia is a joint venture established by AAR and Air France Industries KLM Engineering & Maintenance to service next generation aircraft nacelles. An FAA/EASA certified repair station, xCelle Asia combines the expertise of an airline and a third-party MRO to maintain, repair, and overhaul components for commercial operators across the APAC region. Additional information is available at https://www.aarcorp.com/en/services/component-services and www.afiklmem.com.

About AAR
AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the Chicago area, AAR supports commercial and government customers through four operating segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services. Additional information can be found at aarcorp.com.

About AFI KLM E&M
Air France Industries KLM Engineering & Maintenance is a major multi-product MRO (Maintenance, Repair, Overhaul) provider. With a workforce of over 12,800, AFI KLM E&M offers comprehensive technical support for airlines, ranging from engineering and line maintenance to engine overhaul, aero structure, and fan thrust reverser support, as well as the management, repair, and supply of aircraft components, structured around a powerful logistics network. AFI KLM E&M supports almost 3,000 aircraft operated by 200 major international and domestic airlines. www.afiklmem.com

This press release may contain 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, reflecting management's expectations about future conditions, including anticipated activities, benefits and opportunities related to the joint venture. Forward-looking statements may also be identified because they contain words such as ''anticipate,'' ''believe,'' ''continue,'' ''could,'' ''estimate,'' ''expect,'' ''intend,'' ''likely,'' ''may,'' ''might,'' ''plan,'' ''potential,'' ''predict,'' ''project,'' ''seek,'' ''should,'' ''target,'' ''will,'' ''would,'' or similar expressions and the negatives of those terms. These forward-looking statements are based on beliefs of management, as well as assumptions and estimates based on information currently available to management and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. For a discussion of these and other risks and uncertainties, refer to "Risk Factors" in AAR CORP.'s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. 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 management's control. Management 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.

Contact:
Media Team
+1-630-227-5100
Editor@aarcorp.com

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SOURCE AAR CORP.

FAQ

What did AAR (AIR) and AFI KLM E&M announce on Dec. 10, 2025?

They completed formation of xCelle Asia, a Chonburi, Thailand joint venture with regulatory approval to provide nacelle MRO services.

What nacelle engine types will xCelle Asia support for AIR and AFI KLM E&M?

xCelle Asia is licensed to support GEnx, Trent1000, LEAP‑1A/1B nacelle maintenance, including on‑wing and rotable support.

How does xCelle Asia affect AAR (AIR) operations in the Asia‑Pacific region?

The venture expands AAR's nacelle MRO presence in APAC by adding local overhaul and on‑site inspection capabilities in Thailand.

Is xCelle Asia tied to any existing AAR partnerships?

Yes; xCelle Asia builds on AAR and AFI KLM E&M's existing joint venture experience in the Americas.

Where is xCelle Asia located and when was formation completed?

xCelle Asia is located in Chonburi, Thailand, and formation was completed on Dec. 10, 2025 with regulatory approval.