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AAR Corp ( AIR - Analyst Report ) , the provider of aircraft parts and maintenance, announced that it won the U.S. Transportation Command (USTRANSCOM) task order for providing airlift support for U.S. Department of Defense operations in Afghanistan. Under the contract, AAR Corp. will be providing airlift service to the Department of Defense located in three regions around the world.
The initial base period runs through May 31, 2012 with a funding of $49 million for 12 aircrafts. The contract also has three one-year renewal options, which add up to an estimated value of $240 million.
The task order encompasses renewal of 10 fixed-wing aircraft already operating in the region under USTRANSCOM. In addition, two aircrafts are scheduled to enter into service on October 1, 2011. The company will be using fixed-wing aircraft and rotary-wing aircraft for the transport of personnel, supplies and mail over land and at sea.
Over time, AAR Corp.'s Airlift Group have been providing expeditionary airlift and specialized aircraft modifications services to U.S. Transportation Command for supporting national defense, security and humanitarian relief operations in various regions.
Due to the rugged terrain, the U.S., its Allies as well as the Afghan forces are heavily dependent on airlift to move men, equipment and supplies across Afghanistan, in particular. The U.S. have been using a mix of its own Army, Marine and Air Force assets along with the contractors like AIR for transportation service across the region. The company won a $120 million contract for providing airlift for U.S. troops and services in Afghanistan a year ago.
Based in Wood Dale, Illinois, AAR Corp. provides various products and services to the aviation and defense industries worldwide. The company operates in four segments: Aviation Supply Chain; Maintenance, Repair, and Overhaul; Structures and Systems; and Government & Defense Services. The company competes directly with its peers such as Goodrich Corp ( ) , Boeing Co ( BA - Analyst Report ) , Lockheed Martin Corporation ( LMT - Analyst Report ) .
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