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AAR extends Navy airlift support contract

Illinois USA-based aerospace and defense contractor AAR (NYSE: AIR) said that the US Military Sealift Command has exercised a second one-year renewal option for AAR´s airlift division to ferry critical supplies to US Navy ships in the Western Pacific and Indian Oceans and the Arabian Gulf.

Military Sealift Command is the provider of ocean transportation for the Navy and the US Department of Defense, operating approximately 110 ships daily around the globe.

Under the agreement, AAR will support MSC´s vertical replenishment program (VERTREP), delivering supplies to support combatant ships at sea.

The contract renewal is valued at approximately USD 15m and includes the use of four helicopters, personnel, and operational and technical support services. The original contract, awarded to AAR in 2011, included a one-year initial base period, three one-year options and an additional 11-month option for an estimated total value of USD 77m.

AAR provides expeditionary airlift services in support of contingency operations worldwide.

The company currently operates a fleet of more than 50 fixed-wing and rotary-wing aircraft to transport personnel, supplies, and mail for the US Department of Defense in Afghanistan and the Western Pacific.

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