AAR (NYSE: AIR) has signed a five-year agreement to provide component inventory management and repair services to South African Airways Technical (SAAT) Ltd., the company said.
The company said the contract, valued up to USD125 million, marks an expansion of AAR´s aviation and supply chain services in emerging markets.
AAR has teamed with local joint venture partner, JM Aviation South Africa (Pty) Ltd., to support South African Airways´(SAA) fleet with nose-to-tail component and repair management. JM Aviation will provide day-to-day, on-the-ground account management and technical support and will work closely with AAR´s global parts supply warehouse team in Brussels.
The joint venture focuses on growing SAAT´s MRO services to third-party customers/airlines across the continent, and fulfills a key objective of the South African government to extend aviation services contracts to black-owned firms that, like JM Aviation, are certified BBBEE, or broad-based black economic enterprise businesses.
South African Airways Technical (SOC) Ltd. (SAAT) is a full-service MRO organization, and has held US Federal Aviation Authority (FAA) certification since the late 1980s, serving a range of local and international airlines.
SAAT is a provider of aircraft maintenance to SAA, Mango and Comair/Kulula, who are the premier carriers in South Africa. SAAT also provides MRO services to a variety of regional and other airlines such as Air Namibia, Rwandair, TAAG, Arik Air, Trans Air Congo, Korongo Airlines, Air Zimbabwe, Air Mauritius, Air France, KLM and Turkish Airlines among others.
AAR is an aftermarket solutions company that provides airframe maintenance and integrated supply chain solutions.