About AAR International, Inc.
AAR provides a wide variety of aviation services and technology products primarily for the commercial aviation and defense industries. The company sells and leases new and overhauled aircraft engines and airframe parts to commercial aviation, military, and government customers. AAR provides supply chain management services, parts, and MRO (aircraft maintenance, repair, and overhaul) services. The company also supplies government agencies and non-governmental organizations (NGOs) with transportation pallets, containers, shelters, mobility systems, and control systems used in support of military deployments and humanitarian activities. The company traces its historical roots to 1951 when Allen Eichner began selling aircraft radios and instruments.
AAR operates through two primary segments: Aviation Services and Expeditionary Services.
Aviation Services represents almost 95% of total revenues and provides aftermarket support for the commercial aviation and government and defense markets. Services include inventory management and parts distribution, aircraft MRO, and engineering. Aviation Services sells and leases new, overhauled, and repaired engine and airframe parts to commercial and defense customers. In addition to its direct sales and services, AAR also acts as a distributor for 90 product lines across 25 aviation product manufacturers.
AAR's Expeditionary Services segment (more than 5%) consists of businesses that provide products and services that support the movement of equipment and personnel by US and foreign governments and by non-governmental organizations. The segment also handles maintenance for a fleet of fixed- and rotary-wing aircraft for the US Department of State (DoS).
Based in Wood Dale, IL, AAR operates in 20 countries and has customers in more than 100 countries.
AAR's Aviation Service segment operates out of facilities in five US states including Indiana, Oklahoma, Florida, Minnesota, and Illinois, and at two facilities in Canada. Its Expeditionary Services segment activities are conducted at facilities in Florida, Alabama, California, Michigan, and North Carolina.
The company also has sales and support offices in the UK, France, Brazil, China, Japan, Singapore, and United Arab Emirates (UAE).
Sales and Marketing
Principal customers for AAR's Aviation Services segment are passenger and cargo airlines, general aviation operators, OEMs, aircraft leasing companies, the US Departments of Defense and State (DoD and DoS), and foreign military organizations or governments. In the Expeditionary Services segment, principal customers include the DoD and DOS, foreign military organizations or governments, defense organizations, and OEMs.
The company primarily markets and sells products and services through its sales staff. In certain markets outside the US, it also uses foreign sales reps.
AAR's revenue has recovered since hitting mild turbulence in fiscal 2016. Between fiscal 2015 and fiscal 2019, revenue increased nearly 27%. In recent years, the company has experienced growth in its Aviation Services and Expeditionary Services segments among commercial and government customers.
Sales in fiscal 2019 increased 17% to $2.1 billion compared to $1.7 billion in fiscal 2018. In the Aviation Services segment, sales were up 17%. The rise was primarily due to a 63% jump in revenue from government and defense customers, chiefly the ramp-up of a contract to provide aviation services to a fleet of aircraft for the US Department of State. Sales in the Expeditionary Services segment also rose about 17% amid stronger demand for mobility products.
Net income decreased 52% to $7.5 million in fiscal 2019 compared to fiscal 2018, primarily due to higher income loss from discontinued operations.
Cash at the end of fiscal 2019 was $4.1 million, down slightly from the $41.6 million the prior year. Cash from operations contributed $67.4 million to the coffers, while investing activities used $19 million, mainly for capital expenditures. Financing activities used $48.7 million, primarily for repayments of long-term and short-term borrowings, dividend payments, and purchases of treasury stock.
AAR is focused on winning new customer contracts in both of its operating segments. In fiscal 2019 it expanded the services it provides to Eaton Aerospace to include after-hour logistics and technical aircraft-on-the-ground support. AAR also became the preferred MRO distributor for certain aircraft parts made by Zodiac Aerospace and BASF. The company continued to expand its online parts ordering service in fiscal 2019, notching record sales and website visits.
One the government side, AAR added the US Department of State (DoS) as a customer in fiscal 2019. The deal is a 10-year contract to globally operate and maintain a fleet of aircraft for the DoS, and leverages AAR's capabilities in flight operations and supply chain logistics.
AAR has also expanded the global footprint of its aircraft maintenance, repair, and overhaul (MRO) operations. The company landed a deal to support Rolls Royce aircraft engines for a China-based MRO company. It also obtained certification from the Japan Civil Aviation Bureau to serve Japanese airlines, opening new commercial aircraft repair opportunities in the region.
Ira Allen Eichner began selling aircraft radios and instruments out of his car in 1951; in 1955 he incorporated his business as Allen Aircraft Radio. He opened a maintenance facility in Oklahoma City in 1959 and moved into aircraft overhaul. The firm entered Europe in 1965, became AAR in 1966, and went public the next year.
1100 N Wood Dale Rd
Wood Dale, IL 60191-1060
Phone: 1 (630) 227-2000
Employer Type: Privately Owned
Human Resources Administrator: Barry E Breckle
Employees (This Location): 14
Employees (All Locations): 500
Wood Dale, IL
Zaventem (Brucargo), Belgium