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AAR to Supply Modernized Cargo Pallets to Air Force Under $176M Deal

AAR‘s (NYSE: AIR) mobility systems unit will produce and deliver modernized cargo pallets to the U.S. Air Force under a potential 10-year, $173.5 million firm-fixed-price requirements contract.

USAF looks to procure Next Generation All Aluminum Cargo Pallets from AAR Mobility Systems over an initial 18-month ordering period to meet its operational needs, Wood Dale, Illinois-based provider of aviation services said Wednesday.

Currently, the company supplies legacy 463L pallets to the service branch and will continue to do so for a few more years while the transition to new all-aluminum pallets is underway.

The next general pallet design will feature corrosion-resistant aluminum extrusions to ensure strength-to-weight performance and reliability while being loaded and off-loaded on a variety of military aircraft. It will replace the aging 463L pallet.

AAR Mobility Systems will produce the modernized systems at its Cadillac, Michigan location. In addition to the basic contract period, the award has eight 12-month options and one six-month option.

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