AAR Corp ( AIR - Analyst Report ) recently received Federal Aviation Administration Supplemental Type Certificate (STC) approval for 737NG Life Raft Stowage Compartment, which adds to the list of AAR’s avionics upgrades.

The life rafts will be stored in the ceiling space above aircraft aisles. The innovative design will save valuable overhead bin space. Management considers this as a retrofit option intended to provide its customers with a state-of-the-art solution to increase available bin space.

The highly efficient life-raft compartments, manufactured and assembled by AAR Engineering Services at its Indianapolis operation, is anticipated to provide competitive advantage to AAR above peers such as, Goodrich Corp ( ) , Boeing Co ( BA - Analyst Report ) and Lockheed Martin Corporation ( LMT - Analyst Report ) .

AAR Engineering Services provides a wide range of high-quality, and cost-effective technical services. Building on advanced engineering competence and design proficiency, AAR strives to reinforce its position in the industry as an efficient and high-tech service provider in its class.

The company has recently been voted the Best Airframe MRO Provider — Americas by customers in ATE&M magazine’s 2012 “Aircraft Technology Engineering and Maintenance Awards”. It has also been named Aircraft Parts Supplier of the Year and ranked as one of the Top Five MROs in the world in an industry ranking by Airline Economics magazine.

We currently maintain a long-term ‘Underperform’ recommendation on the stock. Also, AIR carries a Zacks # 4 Rank, which translates into a short-term (1-3 months) ‘Sell’ rating.

The Zacks Consensus Estimate of earnings per share for AAR Corp, for the fourth quarter 2012, is pegged at 49 cents.