AAR has agreed a five-year agreement to provide power-by-the-hour (PBH) component inventory management and repair services to South African Airways Technical (SAAT). The contract is valued up to $125 million.
“This agreement marks a significant expansion of AAR’s aviation and supply chain services in emerging markets,” said David P. Storch, president, chairman and CEO, AAR.
From 1 October, AAR began to deliver the service with local joint venture partner, JM Aviation South Africa who will provide daily on-the-ground account management and technical support. They will be supported by AAR’s global parts supply warehouse team in Brussels.
The joint venture also will focus on growing SAAT’s MRO services to third-party customers/airlines across the continent. AAR will also offer airframe and avionics skills training to SAAT and JM Aviation workers, ensuring knowledge transfer to Africa’s aviation sector. SAAT will gain access to AAR’s operational analysis and technical assistance for MRO, as well as warehouse facilities and integrated IT solutions for MRO.
“We’re excited to lend our award- winning experience to reduce costs to the airline and support growth of Africa’s air travel industry for years to come,” said John Holmes, Chief Operating Officer, Aviation Services, AAR.
“Africa is a dynamic and growing market full of potential. Working with SAAT not only is an opportunity for AAR to grow its presence in Africa, it is an opportunity for SAAT to create access to lucrative jobs and business opportunities for locals through the skills training that AAR will provide,” added Cheryle R. Jackson, president, AAR Africa.
“We are excited to work with an industry- leading partner that not only will enable us to reduce costs and improve fleet readiness but will also fortify our workforce with mission-critical skills necessary to support future growth,” said Musa Zwane, CEO of SAAT.