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BERKSHIRE, England - AAR CORP. (NYSE:AIR), a profitable aviation services company with nearly $2.8 billion in annual revenue and strong financial health indicated by a current ratio of 2.72, announced its subsidiary Airinmar has signed a multi-year extension of support services with Philippines-based low-cost carrier Cebu Pacific, according to a press release statement issued Tuesday.
The agreement extends the full suite of support services covering aircraft warranty management and value engineering that Airinmar has provided to Cebu Pacific since 2022. The services aim to maximize warranty entitlement recovery and reduce component repair costs for the airline. According to InvestingPro analysis, AAR Corp is showing promising growth with revenue increasing by 19.91% over the last twelve months.
Shevantha Weerasekera, Cebu Pacific’s Vice President for Engineering and Fleet Maintenance, said the services have supported the airline with effective management of maintenance spend during its fleet expansion.
Cebu Pacific currently operates a fleet of 100 aircraft with more than 100 additional aircraft on order. The airline entered the aviation industry in March 1996 and has flown over 250 million passengers since its inception.
Matt Davies, Airinmar’s General Manager, said the company takes pride in supporting the airline through its ongoing growth.
Airinmar, which has supported airlines and other aviation operators for over 40 years, provides tailored component repair and warranty management support services. The company is a subsidiary of global aviation aftermarket leader AAR.
In other recent news, AAR Corp has secured a significant contract with the Defense Logistics Agency Troop Support, valued at up to $85 million. This indefinite-delivery/indefinite-quantity contract includes a one-year base period and four one-year option periods, allowing the government to order specialized shipping and storage containers, shelters, and accessories. Additionally, AAR Corp has acquired Aerostrat, a company specializing in long-range maintenance planning software, for $15 million, with potential contingent consideration of up to $5 million. This acquisition is set to enhance AAR’s software capabilities through its Trax subsidiary.
Moreover, AAR Corp has announced the pricing of a $150 million add-on offering of 6.750% senior notes due in 2029. These notes are being issued at 102.000% of their principal amount and are part of an existing indenture through which the company had previously issued $550 million of notes. The recent developments reflect AAR Corp’s strategic moves to expand its software offerings and strengthen its financial position through additional note offerings.
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