AAR, the airframe maintenance and integrated supply chain solutions provider, has signed a five-year agreement to provide power-by-the-hour (PBH) component inventory management and repair services to South African Airways Technical (SAAT) Ltd. The contract is valued up to $125 million.
“This agreement marks a significant expansion of AAR’s aviation and supply chain services in emerging markets,” said David P. Storch, President, Chairman and CEO, AAR. “We are pleased to win the confidence of this leading airline customer in Africa.”
AAR has teamed with local joint venture partner, JM Aviation South Africa, to support South African Airways’ (SAA) fleet with nose-to-tail component and repair management. JM Aviation will provide day-to-day, on-the-ground account management and technical support and will work closely with AAR’s global parts supply warehouse team in Brussels. Work officially began on October 1.
The joint venture also will focus on growing SAAT’s MRO services to third-party customers/airlines across the continent, and fulfils a key objective of the South African government to extend aviation services contracts to black-owned firms that, like JM Aviation, are certified BBBEE, or broad-based black economic enterprise businesses.
In addition, AAR will offer its airframe and avionics skills training to SAAT and JM Aviation workers, facilitating a knowledge transfer to support the growth of black-owned businesses in Africa’s aviation sector, among the fastest-growing in the world.
“We’re excited to lend our award-winning experience to reduce costs to the airline and support growth of Africa’s air travel industry for years to come,” said John Holmes, Chief Operating Officer, Aviation Services, AAR.
“Africa is a dynamic and growing market full of potential. Working with SAAT not only is an opportunity for AAR to grow its presence in Africa, it is an opportunity for SAAT to create access to lucrative jobs and business opportunities for locals through the skills training that AAR will provide,” added Cheryle R. Jackson, President, AAR Africa.
SAAT will gain access to AAR’s operational analysis and technical assistance for MRO, as well as warehouse facilities and integrated IT solutions for MRO.
"We are excited to work with an industry-leading partner that not only will enable us to reduce costs and improve fleet readiness but will also fortify our workforce with mission-critical skills necessary to support future growth,” said Musa Zwane, CEO of SAAT.