AAR Secures Multi-Year A320 Maintenance Contract in Asia-Pacific Expansion

AAR Secures Multi-Year A320 Maintenance Contract in Asia-Pacific Expansion

Strengthening Partnership with Cebu Pacific

AAR CORP. (NYSE: AIR), a prominent global provider of aviation services, has secured a multi-year contract to deliver nacelle maintenance, repair, and overhaul (MRO) services for Cebu Pacific Air’s Airbus A320 fleet equipped with CFM56-5B engines. The maintenance work will be conducted at AAR’s Component Services facility in Chonburi, Thailand, marking a significant expansion of the company’s strategic presence in the Asia-Pacific (APAC) region.

This agreement builds upon AAR’s existing relationship with Cebu Pacific, which includes supplying used serviceable material (USM) for engine overhauls and managing warranty services through its subsidiary, Airinmar. The expanded contract highlights Cebu Pacific’s trust in AAR’s capacity to provide high-quality, cost-efficient maintenance solutions with dependable turnaround times.

Shev Weerasekera, Vice President of Engineering and Fleet Management at Cebu Pacific Air, emphasized the value of the partnership, stating, “We are extremely pleased to be continuing our partnership with AAR. They share our values on maintenance quality and turnaround time, provided at a very competitive rate.” Jim Berberet, Senior Vice President of Component Services at AAR, added, “We’re proud to expand our relationship with Cebu Pacific Air through this component repair agreement, where we will provide innovative and timely solutions for their CFM56-5B nacelles. This agreement reflects the strong confidence that operators have in our cost-effective service offerings in the APAC region.”

Market Implications and Industry Context

Industry analysts observe that AAR’s expanded role with Cebu Pacific signals increasing market confidence in the company’s technical capabilities and service reliability. Nevertheless, the multi-year contract introduces operational challenges, particularly in maintaining consistent service quality across a sizable fleet. The development may also trigger competitive responses from other MRO providers in the region, who might attempt to undercut AAR’s pricing or enhance their service portfolios to capture greater market share.

AAR’s ongoing investment in its APAC operations aligns with broader industry trends, as airlines in the region seek dependable partners to support fleet expansion and improve operational efficiency. The company’s performance under this contract will be closely monitored by both customers and competitors alike.

Corporate Profiles

AAR is a global aerospace and defense aftermarket solutions provider operating in over 20 countries. Headquartered near Chicago, the company supports commercial and government customers through four primary segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services.

Cebu Pacific (CEB) is the Philippines’ leading airline, recognized for pioneering the “low fare, great value” strategy since its inception in 1996. The carrier operates the country’s most extensive domestic network, serving 35 domestic and 25 international destinations across Asia, Australia, and the Middle East.

For further details on AAR’s Component Services, visit AAR’s Component Services.

Forward-Looking Statements

This announcement contains forward-looking statements concerning anticipated activities and benefits under the agreement. These statements are subject to risks and uncertainties that could cause actual outcomes to differ materially. For additional information, refer to the “Risk Factors” section in AAR CORP.’s most recent filings with the U.S. Securities and Exchange Commission.