HASC Wants To Continue VH-71

June 19, 2009 by Matthew Potter · Comment
Filed under: Business Line, Companies, Congress, Countries, Department of Defense, Events, Federal Budget Process, Finemeccanica, Italy, Lockheed Martin, Military Aviation, Services, U.S. Navy, development program 

In their markup of the 2010 Defense Appropriations Bill the House Armed Services Committee added money for continued production of the F-22. It also recommended that the Navy and Defense Department continue production of the Increment One of the VH-71 New Presidential Helicopter.

They feel that this would be the best use of the over $3 billion already spent on the program. There is obviously still a requirement for this aircraft and a new program is planned. The HASC wants the first group of VH-71 to be used as “the normal transport for the President…” with other systems looked at for the more stringent requirements. Right now the President uses VH-3 for short range, normal duties and then longer ranged CH-53 and UH-60 for other missions. One of the problems faced by the VH-71 was the attempt to buy one aircraft to do all missions.

Finemeccanica had offered to just deliver Increment One aircraft at reduced price for the total program. Of course these did not meet all of the requirements that the Navy had levied. This was a major reason the program’s cost and schedule increased so much.

So far the HASC markup does not necessarily agree with the Obama Administration’s proposals in the area of the F-22 or the VH-71. The bill still needs to go through the process of other committee markups, the full House and Senate and then the Conference. This means that this language may or not make it to the final version but it does show support for the VH-71 program.

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AAR ANNOUNCES AAR GLOBAL SOLUTIONS, LLC JOINT VENTURE — Press Release

June 15, 2009 by Matthew Potter · Comment
Filed under: AAR Corporation, Business Line, Companies, Events, Press Releases, Restructuring, logistics 

AAR ANNOUNCES AAR GLOBAL SOLUTIONS, LLC JOINT VENTURE

WOOD DALE, ILLINOIS (June 15, 2009) — AAR CORP. (NYSE: AIR) today announced the formation of a joint venture to expand the Company’s participation in the government and defense services markets. The new business, AAR Global Solutions, LLC, combines the capabilities of AAR with the experience of a seasoned government contracting team, led by Steve Cannon, former Chief Executive Officer of DynCorp International, and other strategic partners including Johnson Global Services, LLC, an affiliate of Magic Johnson Enterprises, and Zaccanelli Investment Partners (ZIP).

“We set out, together with Zaccanelli Investment Partners, to create a unique enterprise dedicated to providing high-quality, value-added solutions in support of the U.S. and other governments’ defense/logistics and nation building initiatives,” said David P. Storch, Chairman and Chief Executive Officer of AAR CORP. “We created an organization with an inclusive and diverse base of ownership, leadership and workforce that has a distinctive blend of skills and perspectives
that will enhance the new venture’s value proposition. I am very pleased to announce the successful launch of AAR Global Solutions and look forward to a bright future with tremendous growth.”

Storch continued, “The parties are committed to providing high-quality solutions to our U.S. Government and international customers by bringing discipline and solid business practices to meet the unique needs and stringent requirements of this customer base. Our partners contribute an international presence and reputation to our efforts as we build this new company.” “AAR Global Solutions will open new government and defense markets to AAR as well as strengthen our ability to compete for global government services programs as a prime contractor,” Storch concluded.

“Through this joint venture, we’re able to offer customers a solution that combines our team’s extensive experience winning and managing large-scale government programs with AAR’s diverse and field-proven capabilities,” said Steve Cannon, Chief Executive Officer, AAR Global Solutions, LLC. “The new AAR Global Solutions team is excited to work with AAR CORP. and our strategic partners to pursue new opportunities to provide world-class, quality services to the U.S. Government and foreign customers.”

“Our strategic investment in AAR Global Solutions reflects my confidence in AAR’s reputation as a highly regarded service provider and a dynamic, entrepreneurial company. I am also impressed with the experience of Steve Cannon and his team,” said Earvin “Magic” Johnson, Chairman and Chief Executive Officer of Magic Johnson Enterprises. “One of our key strategies is identifying diverse business opportunities that strengthen our ability to address emerging markets and create community-based programs that we know will make a difference.” “The formation of AAR Global Solutions represents a unique opportunity to build a worldclass government and defense services organization,” said Frank Zaccanelli, Chairman of
Zaccanelli Investment Partners. “ZIP has a distinguished, successful track record with Steve Cannon and his team and is excited to combine its resources and capabilities with those of AAR and Johnson Global Services.”

AAR is a leading provider of products and value-added services to the worldwide aerospace and defense industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve aviation and defense customers through four operating segments: Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems and Aircraft Sales and Leasing. More information can be found at www.aarcorp.com.

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This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled “Risk Factors”, included in the Company’s May 31, 2008 Form 10-K. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company’s control. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR’s filings with the Securities and Exchange Commission.

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