USTRANSCOM Extends AAR Corporation (NYSE:AIR) Flight Contracts In Afghanistan

The United States Transportation Command (USTRANSCOM) has granted a nine-month contract extension for AAR Corporation (NYSE:AIR) Airlift Group’s rotary wing services in Afghanistan.

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Currently, the extended contract is funded for six months at roughly $33.50 million. AAR provides flight, logistics, and maintenance operations for four rotary wing passenger and cargo aircrafts catering the US Central Command forces.

AAR Airlift Group’s Presence in Afghanistan

AAR has been operating in Afghanistan for more than a decade. Steven Harrison, AAR Airlift Group President, reiterated that this long-time presence of the subsidiary in the region has helped it earn the trust of the Defense Department.

The company provides a fleet of fixed-wing and rotary-wing aircraft in Afghanistan, Africa, the Indian Ocean and Western Pacific, the Falkland Islands, and the Mediterranean, which gives an idea of how spread out American military forces are all over the world. AAR Airlift Group has flown over 242,000 hours since 2005. It has transported nearly two million passengers in remote locations.

AAR Partners with DLA Troop Support Clothing and Textiles Supply Chain

Earlier this month, AAR Mobility Systems has also sealed a partnership with DLA Troop Support Clothing and Textiles Supply Chain to provide the US Defense Department— US Army, Air Force, Coast Guard, Marine Corps, and Navy, and other federal civilian agencies with lightweight mobile hybrid shelters and accessories.

The company entered in an indefinite delivery/indefinite quantity (IDIQ) agreement, which provides for a base period of one year and three renewal options of one year. The maximum contract ceiling is $200 million for the four-year term.

Mark Platko, AAR Mobile Systems General Manager, expressed that the company is delighted with this new collaboration, essentially an extension of the military-industrial complex. Accordingly, the products that will be offered under this contract are made of lightweight rugged military canvas, ensuring the best possible weatherproof workspace for the troops.

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