AAR Corp. responds to FAA emergency order of suspension

WOOD DALE, IL - AAR Corp.

AAR Corp. responds to FAA emergency order of suspension

WOOD DALE, IL – AAR Corp. announced today that on Tuesday, February 10, 2009, AAR Landing Gear Services received an Emergency Order of Suspension from the Federal Aviation Administration, Southern Region, Office of the Regional Counsel, temporarily suspending the repair station certificate for its Landing Gear Services repair station in Miami, Florida.

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The company has been in regular communication with the FAA following facility inspections by the FAA in early July 2008. On July 16, 2008, the FAA issued a written notice of alleged discrepancies, to which the company responded with corrective actions on July 29, 2008. On November 7, 2008, the company met with FAA representatives to discuss its responses and corrective actions. As recently as January 30, 2009 the company received a follow-up letter from the FAA identifying items that required further attention. The company was in the process of responding to that request when it received the order of suspension.

During this period, the company engaged consultants, including FAA Designated Engineering Representatives (DERs), to review its manuals, policies, and procedures to confirm compliance with Federal Aviation Regulations (FARs). Additionally, during this period, the company implemented an enhanced quality assurance function that exceeds current regulatory requirements and successfully submitted to and passed 25 quality and process audits by customers, including the Department of Defense.

“We have worked diligently with the FAA over the past year to respond to its concerns,” said David P. Storch, chairman and chief executive officer, AAR CORP. “We remain committed to resolving this matter as expeditiously as possible. The company will also work equally hard to minimize any inconvenience to its customers and employees during this period.”

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