In the year 2023, AAR CORP., which is primarily engaged in the provision of aviation services to commercial and governmental operators, MROs and OEMs, shall pay Triumph Product Support an amount of $725 Million on a cash basis. AAR also indicated that it would probably receive an estimated tax benefit of about $80 million in the course of the transaction. With the estimated tax benefits included, the effective purchase price multiple is expected to stand at 11.7x FY2024 EBITDA and 9.9x, with an additional $10 million in assumed run-rate synergies.
Triumph Product Support is one of the largest companies that provide MRO of various aircraft parts used in commercial and military aviation throughout the world, as well as MRO for both aircraft and engines. The company provides MRO services for structural components and engine and airframe accessories, as well as for interior and wheel refurbishment.
As far as the most recent contracts are concerned, in November 2021, Safran Landing Systems entered into a five-year agreement with Chinese airline China Eastern for the repair and maintenance of landing gears fitted on thirty-one Airbus A330 aircraft. These operations are to be carried out in the workshop owned by Safran, located in Singapore.
In October 2021, AAR obtained approval from flydubai, a leading provider of MRO services for commercial and government operators, to replenish its power-by-the-hour (PBH) component pool and support Boeing 737NG aircraft repairs. The new five-year contract continues cooperation that began in 2016 to offer comprehensive rotating component support for Flydubai's 737NG fleet.
In December 2021, Frontier Airlines contracted with Lufthansa Technik for the engineering repair, overhaul of 21 pieces of CFM56-5B series thrust engines, and provision of Mobile Engine Services. Lufthansa Technik will also perform mobile engine services on 112 of Frontier Airlines' Airbus A320 family within the next five years. All engine reconstruction is to be done in Hamburg, while only the core engine repair will be done at the company's plant located in Tulsa, Oklahoma.
Key Companies in the Aircraft Maintenance Repair and Overhaul Market include
- Delta TechOps (delta Corporation ltd)
- United Technologies Corporation
- Aviation Technical Service
- Singapore Technologies Aerospace Ltd
United States Aircraft Maintenance Repair and Overhaul Industry Developments
In November 2021, Safran Landing Systems secured a five-year contract with Chinese airline China Eastern to maintain the landing gear on 31 Airbus A330 aircraft. These operations will take done in Safran's Singapore workshop.
In October 2021, AAR, a leading provider of MRO services to commercial and government operators, said that it has inked an agreement with flydubai to replenish its power-by-the-hour (PBH) component pool and offer repair support for the airline's Boeing 737NG fleet. The new five-year contract continues a cooperation that began in 2016 to offer comprehensive rotating component support for flydubai's 737NG fleet.
In December 2021, Frontier Airlines chose Lufthansa Technik to repair and overhaul 21 CFM56-5B engines and provide Mobile Engine Services. Over the next five years, Lufthansa Technik will execute engine overhauls and surgical repairs on Frontier's 112 Airbus A320 family aircraft. Lufthansa Technik will refurbish the engines in Hamburg, Germany, while surgical repairs will be performed locally at the company's facility in Tulsa, Oklahoma.
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