AAR Corp Parts Supply and Engineering Initiatives
Parts Supply: Used Serviceable Material
What we do
Asset selection
Asset sourcing
New technology
(19% of installed base)
Mid-technology (76% of installed base)
Old technology (5% of installed base)
Industry relationships /AAR reputation
GE
PW LEAP
GTF
CFM56
V2500
-5B
-A5
CFM56
-7B
CF34
PW
PW
4000 2000
CF6
-80C2
RB211
-535
AAR focus
CF6-80A
CFM56
-3/5A
CF6-50
< 10 years
Maturity cycle
10-25 years
Source: Cirium; y-axis represents annual platform spend, bubble size represents fleet size
25+ years
Robust
markets
Exclusive customer
contracts
Legacy product
expertise
AAR
•
A320/737/CFM56-12,000+ aircraft
•
A320/V2500 - 3,000+ aircraft
PW2000-through CY28
•
• CF6-80-through CY28
•
PW4000
•
Rolls Royce
Operators, lessors, MROS, trading companies
Cross-selling across AAR
⚫ AAR global sales org, product lines, tech department, compliance
.
Digital market platforms
Ability to close and fund quickly
Analysis and evaluation
Investment evaluation
•
Asset maintenance documentation
⚫ Cash flow projections and detailed valuation analysis
Target margins and IRR
Financial performance review
⚫ Part pricing based on market and return expectations
Results reviewed and compared to investment expectations
• Action quickly taken to liquidate investment if market changes
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