1. AAR and AFI KLM E&M form xCelle Asia for nacelle overhaul. 2. Joint venture enhances service offerings in the Asia-Pacific region. 3. xCelle Asia certified for various next-generation aircraft types. 4. Partnership expected to replicate past success in the Americas. 5. New venture emphasizes innovation and operational excellence.
FAQ
Why Bullish?
This joint venture enhances AAR's operational capabilities and market position, similar to the successful Americas venture.
How important is it?
The joint venture significantly alters AAR's service capacity in a vital market, improving competitive edge.
Why Long Term?
The establishment of xCelle Asia positions AAR for sustained growth through expanded market presence in Asia.
AAR Corp and Air France Industries KLM Engineering & Maintenance Launch xCelle Asia Joint Venture
AAR CORP. (NYSE: AIR), a prominent provider of aviation services for commercial and government entities, along with Air France Industries KLM Engineering & Maintenance (AFI KLM E&M), has successfully completed the formation of xCelle Asia. This joint venture, officially established in Chonburi, Thailand, will focus on overhauling nacelles for new generation aircraft following the receipt of necessary regulatory approvals.
Overview of xCelle Asia
xCelle Asia builds on the success of existing partnerships between AAR and AFI KLM E&M in the Americas. The newly formed entity aims to provide superior support and service to operators within the Asia-Pacific (APAC) region. The joint venture is licensed by various Original Equipment Manufacturers (OEMs) and will carry out nacelle maintenance, repair, and overhaul services. Key capabilities include:
- On-wing and on-site inspections
- Rotable support for next-generation aircraft nacelles
- Services covering engine types such as GEnx, Trent1000, and LEAP-1A/1B
- Future expansions to other new generation aircraft and engine types
Implications for the Asia-Pacific Region
This joint venture significantly enhances AAR's and AFI KLM E&M's service offerings in the APAC market. According to Jim Berberet, Senior Vice President of Component Services at AAR, “This joint venture markedly expands our service offerings in the Asia-Pacific region and furthers our ability to deliver high quality, industry leading solutions to our customers.”
Benjamin Moreau, Senior Vice President of Strategy and Business Development at AFI KLM E&M, stressed the importance of this venture, stating, “The creation of xCelle Asia represents a major step forward in strengthening our global MRO network.” He noted that the new venture would enable both companies to provide world-class support closer to their customers in one of the world’s most dynamic aviation markets.
Background on AAR Corp and AFI KLM E&M
AAR, headquartered in Chicago, operates in over 20 countries, delivering aerospace and defense aftermarket solutions. The company's operations are divided into four segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services, catering to both commercial and government clients.
AFI KLM E&M, with a workforce of over 12,800, specializes in multi-product MRO services. The company provides extensive technical support to nearly 3,000 aircraft, which are managed for about 200 major international and domestic airlines.
Future Outlook
The formation of xCelle Asia is not just a strategic business move; it represents a commitment to innovation, sustainability, and operational excellence within the aviation industry. Both AAR (AIR) and AFI KLM E&M are poised to leverage their combined expertise to redefine service standards in aircraft nacelle maintenance in the APAC region.
Contact Information
For more information regarding AAR, visit aarcorp.com and AFI KLM E&M at afiklmem.com.