AAR in the climb
The company’s Indianapolis
gamble is paying off –even in
the recession
BY JAMES CARELESS
A
AR began life in 1951 as a government – which had provided was still a large pool of them living
small aftermarket supplier millions to help United build the IMC in Indianapolis when AAR came into
of aviation parts. Over time, years before – becoming a major the picture. So finding the people
this Wood Dale, Illinois company commercial MRO almost overnight required to bring the IMC back to life
expanded its capabilities to become a (well, in six months’ time) was an (AAR is not its only occupant today,
complete end-to-end supplier of parts expensive and risky gamble. but it is by far the largest) was a
supply and logistics management, relatively straightforward process.
MRO services, and aircraft leasing Setting the Scene
and sales. Today, AAR is the second Today, AAR has MRO facilities in a Getting Started
largest MRO in the United States, with number of locations across America. AAR signed its 20-year IMC lease deal
over 6,000 employees worldwide – But back in 2004, it only had one; (10 years, with an additional 10 year
2,000 in their MRO division – and 1.7 a 300,000 square foot facility in option) for 1 million square feet with
million square feet of hangar space. Oklahoma at Will Rogers World Airport. the Indianapolis Airport Authority on
A big reason for AAR’s current “We did regional jets and some narrow June 17, 2004. Five months later, on
size is its 2004 decision to lease 1.1 body aircraft in Oklahoma – 737s, November 16, 2004, the company
million square feet of space in the DC-9s and MD-80s,” Wetekam says. announced that AAR Aircraft Services
cavernous Indianapolis Maintenance “We just didn’t have the space to take – Indianapolis had received FAA
Center (IMC). This was originally the on a lot of work that we might have Repair Station Certification. Under
United Airlines Maintenance Center; wanted to.” FAA certification # I6XR049Y, AAR
a state-of-the-art facility whose first Once the IMC facility became Indianapolis was authorized to do
of 12 hangars opened in 1994. United available, things changed. “I had heavy maintenance, major repairs
filed for bankruptcy in 2002 and seen the IMC back in the United and major alterations for Airbus
shuttered the facility in 2003, leaving days, when I was with the Air Force,” narrow body (A318/319/320/321) and
the Indianapolis Airport Authority says Wetekam. “I was in awe of the Boeing 737 series aircraft, engines
searching for a new tenant. place. This is a building that could and equipment. Not long after, the
At the same time, “AAR was comfortably service all of United’s company received FAA authorization
considering moving into commercial narrowbody aircraft; with customized to work on Boeing 757s too.
airline MRO work in a big way,” says bays and equipment already in place “The very first customers we had
Donald Wetekam, AAR’s MRO Group to handle them! What also mattered were one-offs, with people trying us
Vice President. “We had been offering is that United kept this facility at a out,” Donald Wetekam says. “In fact,
limited support to this sector since state-of-the-at level right until the the very first aircraft serviced at AAR
the 1980s, but we knew that the only end. Then they just left everything Indianapolis was one of our own 737s,
way to achieve our goal of becoming more or less in place. This means that which was coming off a lease and
a preferred MRO to value-minded, re-launching the facility was more a needed routine maintenance before it
quality-focused airlines was by having matter of bringing it back online, as could be leased again.”
the facilities to service them.” opposed to starting from scratch.” Ironically, AAR Indianapolis’s first
To realize this goal, AAR jumped United also left one more necessity fleet customer was ... United Airlines.
in feet first; leasing the right to use in place – a skilled workforce. Even Well aware of how the IMC had been
up to 10 bays at the IMC. Even though some laid-off workers had custom-designed to meet its needs,
with financial incentives from local moved or found other jobs, there United seized upon the facility’s
14 Aviation Maintenance |
avmain-mag.com | February/March 2010
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