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AAR Gains Exclusive Rights to Over 450 CFM56 Engines in FTAI Partnership

March 27, 2025By ePlane AI
AAR Gains Exclusive Rights to Over 450 CFM56 Engines in FTAI Partnership
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AAR Corp
CFM56 Engines
FTAI Aviation

AAR Secures Exclusive Rights to Over 450 CFM56 Engines in Extended FTAI Partnership

Strengthening Collaboration Through 2030

AAR CORP. (NYSE: AIR), a prominent provider of aviation services, has announced the extension of its exclusive Serviceable Engine Products agreement with FTAI Aviation Ltd. (Nasdaq: FTAI). This renewed partnership, now extended through 2030, reinforces their joint commitment to the management and distribution of used serviceable material (USM) for CFM56 engines. Under the terms of the agreement, AAR will maintain its role as the exclusive service provider for FTAI’s expanding CFM56 engine pool, which currently exceeds 450 engines.

The collaboration empowers AAR to oversee the teardown, repair, marketing, and sales of spare parts derived from these engines. This arrangement supports the global aviation aftermarket and complements FTAI’s proprietary Module Factory™, a specialized maintenance facility focused on modular repair and refurbishment of CFM56-7B and CFM56-5B engines. John M. Holmes, AAR’s Chairman, President, and CEO, emphasized the significance of the partnership, noting the sustained demand for the CFM56 platform and the value of combining AAR’s extensive USM offerings, enhanced Component Services capabilities, and global sales network with FTAI’s market position.

Expansion of Capabilities and Market Impact

Since the inception of their original agreement in 2020, AAR has significantly expanded its Component Services operations by acquiring five additional global component repair facilities. These strategic enhancements have bolstered AAR’s capacity to support maintenance, repair, and overhaul (MRO) activities for a broader range of engine components, thereby strengthening its competitive standing within the aviation aftermarket.

Joe Adams, Chairman and CEO of FTAI Aviation, expressed satisfaction with the extended partnership, highlighting its role in delivering cost-effective maintenance solutions that enhance operational efficiency and reduce costs per cycle for airlines worldwide. The extension arrives amid robust demand for CFM56 engine parts, positioning AAR to increase its market share through exclusive access to FTAI’s growing engine inventory.

Industry analysts suggest that while the agreement solidifies AAR’s leadership in the sector, it may also prompt competitors to enhance their service offerings or seek new alliances. Market sentiment appears favorable, reflecting confidence in AAR’s expanded capabilities and the strategic advantages conferred by the partnership.

Company Profiles and Industry Context

Headquartered near Chicago, AAR operates in over 20 countries, serving both commercial and government clients through its four primary business segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services. FTAI Aviation specializes in the ownership and maintenance of commercial jet engines, particularly the CFM56 and V2500 models. The company leverages its Module Factory and joint ventures to provide airlines, lessors, and MRO customers with flexible, cost-saving maintenance options.

For further details on AAR’s engine solutions, visit AAR’s engine solutions page.

This article contains forward-looking statements subject to risks and uncertainties, including changes in the global economy and shifts in aviation service demand.

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Dubai Airshow Day 3: Airbus and Boeing Announce New Orders

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Archer to Launch Air Taxi Service to Saudi Arabia’s Red Sea Resorts Next Year

Archer to Launch Air Taxi Service to Saudi Arabia’s Red Sea Resorts Next Year Archer Aviation, a US-based electric vertical take-off and landing (eVTOL) company, has announced plans to introduce its electric air taxis to Saudi Arabia’s Red Sea resorts as early as next year. This initiative will replace the seaplanes currently used to transport tourists to these luxury destinations. The announcement follows a landmark agreement signed at the Dubai Airshow involving Archer, the Public Investment Fund’s The Helicopter Company (THC), and Red Sea Global. A Strategic Partnership for Sustainable Air Mobility The three-party deal marks THC’s inaugural venture into the eVTOL sector, signaling a significant step toward modernizing regional air transport. Nikhil Goel, Archer’s chief commercial officer, described the agreement as a major milestone, highlighting its role in enabling the deployment of early aircraft at the Red Sea and establishing the region’s first eVTOL testing site. Preparations are already underway in collaboration with Red Sea Global, with operations targeted to commence next year. A primary objective of the partnership is to integrate the air taxi service with existing airport infrastructure. Initial routes are expected to connect airports with resorts and city centers, facilitating seamless travel for visitors. While Archer has not disclosed the financial details or the exact number of aircraft involved, the company confirmed that a small initial fleet will be launched, with plans for expansion as commercial routes are formalized. Environmental and Operational Advantages The initiative aims to replace fuel-intensive seaplanes with quieter, lower-emission electric aircraft. Goel emphasized that seaplanes consume significant amounts of fuel and generate substantial emissions, whereas Archer’s Midnight air taxis offer a clean, efficient alternative capable of vertical take-off and landing. This technology is particularly suited to the sensitive natural environment of the Red Sea resorts, providing a sustainable transportation option for high-end guests. John Pagano, CEO of Red Sea Global, underscored the alignment of eVTOL integration with the company’s vision for regenerative tourism. He noted that the new air taxi service would create cleaner, faster, and more connected ways for guests to experience the region’s destinations. Expanding eVTOL Momentum in the Gulf Archer’s expansion into Saudi Arabia coincides with growing interest in eVTOL services across the Gulf region. In Abu Dhabi, the Abu Dhabi Investment Office and Archer recently activated an investment framework to introduce Midnight aircraft, beginning with at least two piloted vehicles. This phase includes recruiting and training local pilots, conducting regional testing, and pursuing certification. Abu Dhabi also plans to develop a network of 10 vertiports to support future air taxi operations. Despite positive market reception and investor enthusiasm, Archer faces challenges including securing regulatory approvals, developing necessary infrastructure, and competing with other eVTOL companies such as Joby Aviation. Competitors are expected to intensify efforts to establish their own partnerships and obtain regulatory clearances in the region. To ensure operational readiness and successful market entry, Archer is collaborating closely with The Helicopter Company, the General Authority of Civil Aviation, and Red Sea Global. The UAE’s General Civil Aviation Authority anticipates completing air taxi certification by the third quarter of next year, which will pave the way for commercial eVTOL services throughout the Gulf region.
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