AAR to Deliver C-40 Aircraft, Support Equipment Under $118M Navy Contract

AAR (NYSE: AIR) has received a potential two-year, $118.6M contract from the U.S. Navy to deliver two C-40 transport aircraft and associated equipment to the U.S. Marine Corps.

The Department of Defense said Friday the company’s government services business will modify two Boeing 737-700 aircraft to meet the Marine Corps’ requirements for a C-9B replacement medium-lift aircraft and support navigation, safety, communication, military mission and cargo and passenger transport operations.

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The Navy requires the aircraft, which will be designated C-40A, to meet military airworthiness standards and directs the contractor to provide training for aircraft personnel as part of the firm-fixed-price contract.

Naval Air Systems Command received two bids for the firm-fixed-price contract and will obligate the full contract value at the time of award.

Contract work is scheduled to run through September 2021 in Illinois, Indiana, Oklahoma and Florida.

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