re-opening to bring in its 737s for servicing. “They were Indianapolis facility busy and its workers employed. “We’re
our first big client, and a natural fit for us,” Wetekam says. here for the long haul,” Wetekam says. “We didn’t invest in
“It made sense for them to come here.” this facility to cut and run when things got tough.”
Soon after, Federal Express chose AAR to services its In fact, the recession has not shifted AAR away from its
727 fleet, followed by Southwest Airlines’s fleet of 737s. goal of being a preferred MRO for commercial airlines. “We
But business didn’t stay as steady as one might have offer a work process that is second to none,” Wetekam tells
hoped: “When United started phasing its 737s, their MRO Aviation Maintenance. “With our proprietary ERP systems,
work dried up,” Wetekam notes. “The same was true for we can manage all aspects of our customers’ supply and
Federal Express, which reduced its 727 fleet in favor of maintenance needs; backed by a commitment to quality
newer, more fuel-efficient aircraft.” work that is done right the first time. And since we want to
The good news is that Southwest Airlines didn’t follow establish long-term relationships with our airline customers,
suit. “In fact, they have been with us for years, and are we are willing to be flexible. We want to make it as easy for
now our largest customer,” he says. “Thanks to our other them to use us as it can be.”
companies providing parts, engines and landing gear,
we are able to provide Southwest with a full range of Would AAR Do It Again?
MRO support. This is the reason why we wanted to be a It’s a good question: When the company decided to
commercial airline MRO, by the way: We knew that we lease space in the IMC, there was no sign of the 2008
had the corporate synergies to offer end-to-end service Recession anywhere on the horizon. On the other hand,
efficiently and cost-effectively.” the economy was doing poorly when AAR made the deal.
United itself had filed for bankruptcy protection due to an
The Recession and Beyond earlier recession and the fallout from the 9/11 attacks on
Business was going well for AAR in Indianapolis when air travel.
the recession struck. Then, like everyone else in the In other words, AAR’s managers knew all about
aviation industry, the company felt the pressure from the economic hard times in 2004, even if the current recession
economic downturn. was beyond anyone’s prediction. So given what they
“It’s been a difficult year,” says Donald Wetekam. “Like know now, would the company’s managers take the same
other parts of the business, we have seen a drop in revenues. plunge today?
With fewer people flying, there are fewer flights, and some “Absolutely,” Donald Wetekam replies. “The IMC deal
maintenance is deferred. This translates into fewer jobs on is what made us who we are today in the world of heavy
new aircraft, and the outright retirement of older aircraft like maintenance. It was a calculated risk in a situation where
727s and 737 Classics.” all risks could not be known, but it was a smart business
Despite the slowdown, AAR has managed to keep its move nevertheless.”
AM
AAR’s Other MRO Facilities Miami has three hangars covering 226,000 plating and machining, non-destructive
Besides AAR Aircraft Services – square feet and 746 employees. The testing, engineering, painting and assembly,
Indianapolis, AAR has a number of MRO company handles both narrowbody and and bushing manufacture for 43 types of
facilities across the United States: widebody maintenance for Airbus and aircraft. AAR Landing Gear Services – Miami
Boeing aircraft. Working done includes provides AOG worldwide.
AAR Aircraft Services Hot Springs, Arkansas bridging checks, interior modifications &
Focused on regional aircraft depot refurbishments, avionics upgrades and AAR Aircraft Services Oklahoma
maintenance, AAR’s Hot Springs facility passenger to cargo conversions. AAR In 1971 AAR purchased Aircraftsman and
has a 60,000 square foot hangar and 103 Aircraft Services – Miami also has an EPA/ operated this 300,000 square foot facility
employees. The facility was owned by DERM-approved paint bay. At full capacity, as AAR Oklahoma until 1998, when it
Reebaire Aircraft, Inc., until AAR acquired it can handle three widebody and six was renamed AAR Aircraft Services –
Rebaire in 2007. The renamed AAR narrowbody aircraft at a time. Oklahoma. The Oklahoma location has six
Aircraft Services – Hot Springs doubled hangars in all, and can service 727, 737,
AAR’s regional aircraft capacity. AAR Landing Gear Services Miami DC-9, MD 80/90 and regional jets from
This is a 128,000 square foot facility with nose to tail. 481 staff work here, and have
AAR Aircraft Services Miami 364 employees, providing a full range of collectively won the FAA Diamond Award
Formerly Avborne Heavy Maintenance until landing gear services. These include landing for five consecutive years.
acquired by AAR), AAR Aircraft Services - gear overhaul and repair, inspections,
16 Aviation Maintenance | avmain-mag.com | February/March 2010
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