OKLAHOMA CITY - AAR CORP (NYSE: NYSE:AIR) has announced the extension of its airframe maintenance, repair, and overhaul (MRO) service agreement with Alaska Airlines, reinforcing a partnership that has spanned over two decades. The extended contract is set to run until 2030, with plans to enhance MRO capabilities at Will Rogers (NYSE:ROG) World Airport in Oklahoma City.
The proposed expansion includes the construction of a new three-bay hangar adjacent to the existing seven-bay facility, designed to accommodate all models of Boeing (NYSE:BA) 737 aircraft, including the latest 737-10 variant. The additional space will cover 85,000 square feet and is pending approval from the Oklahoma City Airport Trust.
This strategic move is supported by a grant from the State of Oklahoma and rent concessions from the airport authority. It is expected to create more than two hundred jobs as part of AAR's workforce development initiatives in the region.
In addition to strengthening its MRO services, Alaska Airlines is expanding its operations with flights to new destinations including the Bahamas and Guatemala starting in December.
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