AAR signs new component repair agreement with Cebu Pacific

Rhea-AI Summary

AAR Corp (NYSE: AIR) has secured a multi-year agreement with Cebu Pacific Air to provide nacelle maintenance, repair, and overhaul services for the airline's A320 fleet equipped with CFM56-5B engines. The work will be conducted at AAR's Component Services facility in Chonburi, Thailand.

This agreement expands AAR's existing relationship with Cebu Pacific, which already includes providing USM engine material for CFM56-5B engine overhauls and warranty management services through AAR's subsidiary Airinmar. The partnership aims to deliver maintenance quality and efficient turnaround times at competitive rates.

Positive

• Secured multi-year agreement for A320 fleet maintenance services
• Expansion of existing business relationship with Cebu Pacific
• Strengthens presence in the growing APAC aviation market

Negative

• None.

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WOOD DALE, Ill., March 12, 2025 /PRNewswire/ -- AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, MROs, and OEMs, announced a multi-year agreement to provide Cebu Pacific Air with nacelle maintenance, repair, and overhaul services for the airline's A320 fleet powered by the CFM56-5B engine. This work will be performed at AAR's Component Services facility in Chonburi, Thailand.

AAR's longstanding relationship with Cebu Pacific includes supplying USM engine material for the airline's CFM56-5B engine overhauls and providing warranty management and repair cost oversight services through AAR subsidiary Airinmar.

"We are extremely pleased to be continuing our partnership with AAR. They share our values on maintenance quality and turnaround time, provided at a very competitive rate," said Shev Weerasekera, VP of Engineering and Fleet Management for Cebu Pacific Air.

"We're proud to expand our relationship with Cebu Pacific Air through this component repair agreement, where we will provide innovative and timely solutions for their CFM56-5B nacelles," said Jim Berberet, AAR's Senior Vice President of Component Services. "This agreement reflects the strong confidence that operators have in our cost-effective service offerings in the APAC region." 

For more information on AAR's Component Services, part of the Company's Repair & Engineering segment, visit https://www.aarcorp.com/en/services/component-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 Cebu Pacific
Cebu Pacific (CEB), the Philippines' leading airline, entered the aviation industry on March 8,1996 and pioneered the "low fare, great value" strategy, and has flown over 200 million passengers since inception. CEB offers the widest domestic network in the Philippines with 35 domestic destinations. It also currently operates flights to 25 international destinations, spanning across Asia, Australia, and the Middle East.

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 under the agreement. 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 services will AAR (AIR) provide to Cebu Pacific under the new agreement?

AAR will provide nacelle maintenance, repair, and overhaul services for Cebu Pacific's A320 fleet powered by CFM56-5B engines at their Thailand facility.

Where will AAR (AIR) perform the maintenance work for Cebu Pacific?

The maintenance work will be performed at AAR's Component Services facility in Chonburi, Thailand.

What existing services does AAR (AIR) provide to Cebu Pacific?

AAR currently supplies USM engine material for CFM56-5B engine overhauls and provides warranty management and repair cost oversight through Airinmar.

How will this agreement impact AAR's (AIR) presence in the APAC region?

The agreement strengthens AAR's position in the APAC region by expanding their relationship with a major regional carrier and demonstrating operator confidence in their services.