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AAR Corp., a global aviation services provider, announced it has signed a 10-year agreement to provide airframe maintenance for Air Canada and agreed to acquire two Premier Aviation facilities.
The agreement will apply to Air Canada’s narrow-body fleet of Airbus 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 Quebec, a former Premier Aviation facility.
The company also agreed to acquire a Premier Aviation facility at Windsor International Airport in Ontario.
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.
“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 of operations at Air Canada.
“This contract further supports the development of Quebec’s aviation sector by encouraging industry expertise and job growth in the coming years, and Air Canada is proud to be a significant contributor to the economy of the region.”
“We are honoured 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.
Premier Aviation established the MRO facility in Trois-Rivières in 2002 and expanded it to 150,000 square feet in 2011. The facility can accommodate up to seven narrow-body aircraft.
Premier began operating in Windsor in 2012 in a new 143,000 square-foot hangar with full back shop capability and capacity for six narrow-body aircraft.
The facilities have made significant investments in tooling over the past few years and currently employ over 300 well-trained aviation mechanics and personnel who will retain their positions based on expected workload.
“We are excited to add an experienced workforce and two world-class facilities to our award-winning MRO network, and we look forward to growing our position in, and bringing more flexibility and value to, the Canadian market,” said John Holmes, president and chief operating officer, AAR. “The culture of continuous improvement and execution excellence at these facilities is consistent with AAR’s commitment to the highest levels of service.”
“We are honoured that a company with the reputation, breadth and depth of AAR has recognized the quality of our MRO facilities, and we are pleased that the customers and employees of these facilities will continue to be well-supported,” said Ronnie DiBartolo, president of Premier Aviation. “This transaction also allows Premier to focus its resources on future areas for growth at our other two MRO facilities.”
Holmes added, “This Canadian presence will be complementary to our U.S. MRO operations and workforce.”
The Canadian MROs will join AAR’s award-winning network that also includes airframe maintenance facilities in Indianapolis, Ind.; Miami, Fla.; Oklahoma City, Okla.; Duluth, Minn.; and Rockford, Ill., as well as component repair facilities in New York and Amsterdam; and landing gear services in Miami.
Across these sites, AAR provides industry leading maintenance, repair and overhaul for regional, narrow-body and wide-body aircraft operators. AAR was ranked as the largest MRO services provider in the Americas and third in the world, before this acquisition.
