Star Tribune has announced AAR Corp. is closing its facility in Duluth, where it performs maintenance on commercial airliners, the company said.
AAR had signed a 20-year lease last year. The closure causes the layoff of about 275 jobs by the end of July.
Many workers had been on furlough since April as business declined due to the steep drop in airline travel. Employees were notified Wednesday that they would be permanently laid off and the company would be closing its doors as of July.
The closure is due to the unforeseen business circumstances associated with the COVID-19 pandemic and its effects on the commercial airline industry.
AAR, a publicly traded company based in Illinois, began operating in Duluth in 2012 and was a growing player in the city´s aviation industry, which is anchored by Cirrus Aircraft and the Air National Guard base.