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. About four-fifths of AAR's revenue comes from North America. 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 approximately 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 more than 30 product lines across 25 aviation product manufacturers.
AAR's Expeditionary Services segment (roughly 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).
The company generates its sales through its products (nearly 55% of sales), and services (more than 45%). Among its products, aviation supply chain accounts for the largest revenue (about 70% of sales), while maintenance, repair and overhaul services, and mobility products account for the rest,
Based in Wood Dale, Illinois, AAR operates in 20 countries. North America generate about 80% of total revenue, followed by Europe/Africe with more than 15% of total revenue, and the rest comes from other countries.
AAR's Aviation Service segment operates out of facilities in five US states including Indiana, Oklahoma, Florida, and Illinois, and at two facilities in Canada. Its Expeditionary Services segment activities are conducted at facilities in Florida, Alabama, California, and Michigan.
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.
The company's revenue in 2020 increased by $20.2 million to $2.07 billion compared to $2.05 billion in the prior year. The increase was due to sales in the Aviation Services segment increased $43.6 million or 2% over the prior year. Sales to government and defense customers increased $117.0 million or 20%, primarily attributable to new contracts awarded recently, including the $118 million contracts for the procurement, modification, and delivery of two C-40 aircraft the company received in early fiscal 2020.
Net income in 2020 decreased by $3.1 million to $4.4 million compared to $7.5 million in the prior year. The decrease was due to a higher increase in its operating expenses offsetting the increase in the company's revenue.
Cash held by the company at the end of 2020 increased by $383.6 million to $424.7 million compared to $41.1 million in 2018. Cash provided by financing activities was $444.5 million, primarily from short-term borrowings. Cash used for operations and investing activities were $36.1 million and $24.8 million, primarily for property, plant and equipment expenditures.
Fiscal 2020 began with strategic initiatives focused on growth and execution across all of its activities in the commercial and government markets. AAR's momentum from a successful fiscal 2019 carried into the new year as it saw continued strength in its parts supply activities, as well as in government programs. The company also realized the positive impact its efforts to attract and retain talent had in its maintenance, repair and overhaul ("MRO") activities.
The company's strategy to exit the capital-intensive Contractor-Owned, Contractor-Operated ("COCO") business was also completed in fiscal 2020 as all of its assets and contracts were sold.
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): 18
Employees (All Locations): 500
Wood Dale, IL
Zaventem (Brucargo), Belgium