AAR, KIRA establish KALS LLC joint venture, awarded E-6B contract by U.S. Navy

Rhea-AI Summary

AAR CORP. (NYSE: AIR) has formed a joint venture called KALS with KIRA Aviation Services under the federal government's Small Business Administration Mentor-Protégé Program. The venture has secured a significant E-6B Mercury pilot training contract from the U.S. Navy.

The contract, structured as a firm fixed-price indefinite-delivery/indefinite-quantity agreement, will provide in-flight training and currency for Naval Aviators. Operations will be conducted in Oklahoma City through March 2027. Through this partnership, AAR will share its aviation expertise with KIRA, helping the small business develop new capabilities and positioning it for future growth.

The joint venture combines AAR's extensive experience with KIRA's service reputation, aiming to meet Department of Defense needs for maintenance and supply chain services. KIRA currently provides base operations and facility support to the U.S. government.

Positive

• Secured new U.S. Navy contract for E-6B Mercury pilot training
• Strategic expansion into government defense contracts through joint venture
• Long-term contract extending through March 2027

Negative

• Contract value not disclosed
• Revenue impact uncertain due to indefinite-delivery/indefinite-quantity nature of contract

WOOD DALE, Ill., April 7, 2025 /PRNewswire/ -- AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, has formed a joint venture, KALS LLC, with KIRA Aviation Services under the federal government's Small Business Administration Mentor-Protégé Program. The joint venture was recently awarded an E-6B Mercury pilot training contract by the U.S. Navy.

Under a firm fixed-price indefinite-delivery/indefinite-quantity contract, KALS will provide in-flight training and currency for Naval Aviators in support of the U.S. Navy's E-6B Mercury pilot training. KALS will perform the work in Oklahoma City through March 2027.

The joint venture, KALS, was established by AAR and KIRA to meet pressing Department of Defense needs for maintenance and supply chain services. KIRA currently provides award-winning base operations and facility support to the U.S. government and stands to benefit from expanding its array of capabilities. Through the Mentor-Protégé Program, AAR will share its aviation expertise and provide KIRA with training, developing a new set of skills for the small business and positioning it for future growth. The KALS joint venture combines AAR's vast experience and reach-back with the best-in-class service reputation of KIRA.

"We are excited to help solve an urgent need of the U.S. Navy through this joint venture. The combined capabilities of AAR and KIRA will ensure the Navy receives outstanding pilot training for the Department's critical national mission," said Lt. General (r) John Cooper, AAR's Senior Vice President of Global Government and Defense.

"KIRA is thrilled to swiftly bring this critical support to the Navy. By combining the breadth and depth of experience of our two companies, KALS helps the Navy enhance their mission and helps the federal government meet their small business goals," said Beth Hershner, Tlingit Haida Tribal Business Corporation's Vice President of Operations, Information Technology and Engineering Professional Services.

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 KIRA Aviation Services
KIRA Aviation is a Tlingit Haida Tribal Business Corporation (THTBC) subsidiary - a Tribally-Owned 8(a) Small Business (Protégé). The company specializes in providing a wide range of facility maintenance, logistics support, and base operations services to various Department of Defense agencies.

About KALS LLC
KALS is a joint venture established by AAR CORP. and KIRA  Aviation Services to meet the pressing demands of the United States government. Formed under the Small Business Administration's Mentor-Protégé Program, KALS combines AAR's vast experience as a large aviation services company and the award-winning small business capabilities of KIRA to provide world-class aviation maintenance and supply chain services.

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 and benefits pursuant 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 is the duration and location of AAR's (AIR) new Navy E-6B training contract?

The contract will be performed in Oklahoma City through March 2027.

What type of contract did KALS receive from the U.S. Navy for AIR stock?

KALS received a firm fixed-price indefinite-delivery/indefinite-quantity contract for E-6B Mercury pilot training.

What is the purpose of the KALS joint venture for AAR (AIR)?

KALS was established to meet Department of Defense needs for maintenance and supply chain services, combining AAR's experience with KIRA's service reputation.

How will the Mentor-Protégé Program benefit KIRA in the AAR (AIR) partnership?

AAR will share aviation expertise and provide training to KIRA, helping develop new skills and positioning the small business for future growth.