Allen Aircraft Radio (AAR): Adding Innovation To The Global Aviation

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John Holmes, President & CEO The trajectory of the global airline industry is much similar to that of an aircraft. There are lows and highs like, sometimes it takes off for the high skies and at times, it dips to ground levels. Between these fluctuations is the true story of the industry – the key players, the new and emerging trends that fuel its growth. One such company is Allen Aircraft Radio (AAR), founded by Ira Allen Eichner. Started his career dealing used electrical parts in Chicago, his trade in military surplus radios introduced Eichner to aviation. Around the mid-1950s Eichner formed AAR, naming himself as the CEO. Later, AAR organized its Aircraft Turbine Center, after future CEO David P. Storch, Eichner's son-in-law, joined the company. The unit also maintains a widearray of Pratt & Whitney and GE engines. Over time, its Allen Aircraft airframe parts subsidiary had become a leader in the industry.

Under John Holmes, President and Chief Executive Officer, AAR grew by anticipating and preparing for a dynamic aviation environment, developing innovative products and programs. Today, comprised of more than 2,600 employees at 40 facilities strategically located in 12 countries, AAR is the premier supplier of products and services to the worldwide aviation industry and most diverse aviation aftermarket support companies. The company trades aircraft parts and whole planes, overhauls engines and airframes, and manufactures certain components, with maintenance facilities in New York, London, The Netherlands, Oklahoma, Connecticut, and Miami. “Our government programs teams are experts in successfully implementing both US Air Force landing gear PBL contract, as well as the WASS INL program,” adds Holmes.

Today, AAR delivers world-class aviation solutions to government and commercial customers in over 100 countries across the globe. With over half a century’s industry experience and expertise, the company’s team always strives to deliver the best and innovative technical operational solutions to enhance the efficiency and competitiveness of the customers. The company seamlessly provides services through a network of facilities that bundles landing gear, airframe, technical and engineering capabilities, with the largest inventory of new and serviceable air frame, engine parts for virtually every commercial aircrafts and military platforms. AAR helps the world’s airlines and governments by reducing operating costs while maintaining high levels of safety, service and quality. “Our mission is simple, to do it right, to better connect the world,” notes Holmes.

The company has revenues of approximately $1.8B with more than 6,000 employees in 20 countries. Its aftermarket expertise and award-winning market solutions, which can be integrated or leveraged separately, help customers increase efficiency and reduce costs while maintaining high levels of quality, service and safety.


Our government programs teams are experts in successfully implementing both US Air Force landing gear PBL contract, as well as the WASS INL program


Tailored and Specialized Mobility Products

AAR prided itself on anticipating customers' needs. The company later updated their computer systems, allowing it to track parts going through its shops. One of AAR's new businesses proved highly lucrative. It leased four Boeing 737s and had bought eight Boeing 727s from Air France, leasing six of them to cargo giant DHL. AAR’s competitiveness resulted in keeping older planes working longer, which could further improve the demand for maintenance and parts. As a result, the outsourcing of maintenance operations increased, as the airlines sought to concentrate on their profit-making core activities. “Our organic sales growth and innovation generation are driven by the continued strength in our parts supply and programs activities,” says Holmes.

AAR serves customers through four operating segments including Aviation supply chain, AAR Logistics distribution and component repair services and maintenance, repair and overhaul. Its IT services connect customers and supplier business systems providing real-time access to operational data across the supply chain. AAR provides specialized mobility products and customized cargo systems to support the mobilization of troops and supplies into critical areas. The company’s composite structure and precision machine parts are deployed across a variety of commercial and military aircraft.

AAR also offers airlift and specialized aircraft modification services in support of national priorities. Their logistics keep aircraft forms and ground equipment mission ready while the advanced communication systems serve as a critical link to the natural disasters and humanitarian aid operations. Never losing the focus on customers and continuing to diversify the offerings, AAR has emerged as a unique force in the aerospace industry. With an enduring entrepreneurial spirit, AAR is truly taking flight charting a path for new levels of success.

AAR manufacturing solutions include Composites and Mobility Systems. Composites are an industry leader in the design, fabrication and assembly of composite structures and interiors for rotary and fixed wing aircraft for commercial transit and airline customers. Mobility systems specialize in mission tailored configurations, custom integrations and lifecycle support for government, military and non-profit organizations worldwide. The company has a strategically located world-wide supply chain network and repair facilities in addition to regional sales offices allowing personal attention demonstrating our global expertise and emerging market reach.
AAR is also an aftermarket expert with over 60 years in creating comprehensive solutions. Its power of focus is on core competencies to provide best in class solutions. Being independent, the company is able to provide dedicated customer support, nimble and act responsible without sacrificing quality or speed. AAR has been a trusted partner since 1955.

"Our organic sales growth and innovation generation are driven by the continued strength in our parts supply and programs activities"

The Trusted Airlines Partner

AARhas become a trusted partner toa number of militaries, airlines, and OEMs delivering competitiveness, so they can focus on transporting passengers, cargo and parts around the world. Recently BASF and AAR signed an agreement to serve the aircraft ozone and Volatile Organic Compounds (VOC) converter market with a focus on offering improved airplane cabin air quality and healthier conditions for passengers. BASF selected AAR as a distributor of BASF Deoxo aircraft cabin ozone/VOC converters and Overhaul (MRO) services, and converter Maintenance Repair.

The air at high altitude contains significant levels of ozone. When left unchecked, atmospheric ozoneenter the aircraft through via conditioning duct, which could cause adverse health effects, including headaches, shortness of breath, coughing, chest pain,and irritation of the eyes, nose or throat. Sources of these odors include lubricant leaks and on-ground maintenance activities. With BASF’s sophisticatedtechnology, airlines can reduce both harmful ozone and VOC in aircraft cabin air. As a result of the partnership, it could improve air quality by removing ozone, as well as reducing certain hydrocarbon compounds responsible for unpleasant odors such as jet fuel smell.


In Search of Innovation

At AAR, the team always keeps searching for the right thing to do for the employees, partners and for society and are focused on doing it right and quickly for the clients while aligning with the various regulations and compliance requirements. “In addition to executing on these and other prior awards, we announced several new businesseswin throughout the year. Most recently in the fourth quarter, we announced the extension of our engine support contract with MTU,” says Holmes.

In the near future, AAR is planning to develop its inventory management business as carriers became less involved in this function. It bought the spare parts inventory from carriers such as Lufthansa and Northwest, which freed their capital. “We are also look forward to expanding our partnership with GAL as they seek to become a premier maintenance and integrated logistics support provider in the region,” concludes Holmes.

Company
Allen Aircraft Radio

Headquarters
Wood Dale, IL

Management
John Holmes, President & CEO

Description
AAR is the premier supplier of products and services to the worldwide aviation industry and most diverse aviation aftermarket support companies.The company trades aircraft parts and whole planes, overhauls engines and airframes, and manufactures certain components, with maintenance facilities in New York, London, The Netherlands, Oklahoma, Connecticut, and Miami. AAR delivers world-class aviation solutions to government and commercial customers in over 100 countries across the globe. With over half a century’s industry experience and expertise, the company’s team always strives to deliver the best and innovative technical operational solutions to enhance the efficiency and competitiveness of the customers