AAR (NYSE:AIR) announced today that it has signed a Memorandum of Agreement (MOA) with Sikorsky Aircraft Corporation under which the two companies will work together to identify opportunities to expand their business relationship. In addition, AAR was named the exclusive supplier of composite interiors for the Sikorsky S-92® helicopter program and will provide precision machining services for S-92 helicopter flooring and a structural component of the H-60 helicopter airframe. The combined value of initial orders is approximately $18.8 million, with a potential contract value exceeding $60 million.

The MOA represents a formal agreement between AAR and Sikorsky to explore opportunities to align AAR's diverse engineering, manufacturing, maintenance and parts supply capabilities with Sikorsky's production and aftermarket support requirements. The fabrication of S-92 Offshore/Airline helicopter composite interiors will be performed by AAR Composites. Precision machining services will be provided by AAR Summa Technologies. Together, these AAR businesses offer a complete range of design engineering and manufacturing services for both advanced composite and metallic aerostructures.

"This MOA represents an important step in building our relationship with Sikorsky and strengthening AAR's reputation in the rotorcraft market," said Timothy J. Romenesko, President and Chief Operating Officer, AAR CORP. "We appreciate the opportunity to provide Sikorsky with high-value products and services for their S-92 and H-60 helicopter programs and look forward to working with them to explore additional opportunities to support their operations and aircraft."

AAR is currently under contract with Sikorsky to provide composite components for S-92 Search and Rescue helicopter interiors, S-92 VIP helicopter Interiors, S-92/H-92 helicopter ramp panels, CH148 helicopter Interiors and CH148 helicopter fairings and to produce machined components for H-60 aircraft.