MRO & Manufacturing
AAR Corp to Close Indianapolis Maintenance Facility Impacting 329 Jobs
AAR Corp. will close its Indianapolis maintenance hub by 2027, laying off 329 employees following its HAECO Americas acquisition.
This article summarizes reporting by IndyStar and official filings. The original report is paywalled; this article summarizes publicly available elements and public remarks.
AAR Corp. (NYSE: AIR) has confirmed plans to permanently shutter its airframe maintenance facility at the Indianapolis International Airport (IND), a move that will result in the layoff of approximately 329 employees. According to a Worker Adjustment and Retraining Notification (WARN) Act notice filed with the Indiana Department of Workforce Development on December 22, 2025, the closure is scheduled to take place in phases over the next year.
The decision marks the end of a two-decade era for the facility under AAR’s management. Reporting by IndyStar indicates that the closure aligns with the expiration of the company’s lease and follows a significant strategic shift in AAR’s North American operations. The shutdown process is set to begin on February 15, 2026, and is expected to conclude by February 28, 2027.
The closure of the Indianapolis site appears to be a direct consequence of AAR’s recent expansion efforts elsewhere. In November 2025, AAR finalized the acquisition of HAECO Americas for a reported $78 million. This transaction provided the aviation services company with two modern heavy maintenance facilities located in Greensboro, North Carolina, and Lake City, Florida.
According to industry analysis and financial reports, the HAECO acquisition included approximately $850 million in long-term contracts, effectively securing capacity at the newly acquired sites. Consequently, the Indianapolis facility, a legacy asset requiring a lease renewal, was deemed redundant within the optimized network.
The Indianapolis Maintenance Center, located at 2825 W. Perimeter Road, is a massive 1.6 million-square-foot complex originally constructed in the early 1990s. AAR leased approximately 367,000 square feet of this space. Reports suggest that the aging infrastructure of the facility, often described in local aviation circles as “legacy” compared to modern standards, played a role in the decision.
AAR’s lease with the Indianapolis Airport Authority (IAA) was approaching expiration. Rather than committing to a long-term renewal, the company signed a short-term extension through February 2027. This timeline mirrors the final closure date outlined in the WARN notice, signaling a deliberate exit Strategy rather than a sudden financial collapse.
The primary impact of this consolidation will be felt by the local workforce. The WARN notice specifies that 329 employees will be separated from the company starting in mid-February 2026. AAR has stated that all affected employees are receiving at least 60 days’ notice, complying with federal requirements. The Indiana Department of Workforce Development is expected to activate its “Rapid Response” team to assist displaced workers. This state-led initiative typically provides job placement assistance, resume workshops, and Training opportunities to help workers transition to new employment.
The Indianapolis Maintenance Center has a complex history tied to public investment. Originally built for United Airlines in 1994, the facility was supported by over $300 million in taxpayer incentives with the promise of thousands of jobs. However, United Airlines vacated the site in 2003 following bankruptcy proceedings.
AAR took over the facility in 2004, stabilizing the site and employing hundreds of mechanics for over 20 years. The upcoming departure leaves the Indianapolis Airport Authority with a significant vacancy, specifically 10 hangar bays, that has historically been difficult to fill.
Despite the closure, AAR Corp. remains in a strong financial position. Fiscal Year 2025 reports indicate a 20% revenue growth, reaching $2.8 billion. This growth has been driven largely by acquisitions and robust demand for aftermarket parts. The company’s stock performance has trended upward, with analysts interpreting the consolidation of operations into the HAECO facilities as a margin-positive move.
The closure of the Indianapolis facility underscores a broader trend in the MRO sector: the prioritization of owned, modern assets over leased legacy infrastructure. By acquiring HAECO, AAR not only gained capacity but also secured a workforce and facility footprint that likely offers better long-term economics than the aging Indianapolis site.
For the Indianapolis Airport Authority, this presents a familiar challenge. The facility was designed for a different era of aviation, where massive, single-tenant hubs were the norm. In today’s market, finding a single tenant to occupy such a vast space is increasingly difficult. We anticipate the IAA may need to subdivide the space or seek non-traditional tenants to utilize the hangars effectively once AAR departs in 2027.
When will the layoffs begin? Is AAR Corp. in financial trouble? What will happen to the facility?
AAR Corp. to Close Indianapolis Maintenance Hub, Impacting 329 Workers
Strategic Consolidation Following HAECO Acquisition
Facility Condition and Lease Timing
Impact on Workforce and Local Economy
Historical Context of the Site
Financial Health and Market Trends
AirPro News Analysis
Frequently Asked Questions
According to the WARN notice, the first separations are scheduled to begin on February 15, 2026.
No. Financial reports show AAR is growing, with a 20% revenue increase in FY2025. The closure is a strategic move to consolidate operations following the acquisition of HAECO Americas.
The facility will revert to the control of the Indianapolis Airport Authority after the lease expires in February 2027. The IAA has not yet announced specific plans for the site.
Sources
Photo Credit: AAR Corp
MRO & Manufacturing
Airbus Helicopters Unveils Three-Horizon Innovation Strategy for 2026
Airbus Helicopters’ 2026 strategy focuses on autonomy, hybrid upgrades, and high-speed efficiency with Racer and Manned-Unmanned Teaming initiatives.
Airbus Helicopters is refining its approach to aerospace development, moving away from purely theoretical concepts toward a pragmatic strategy focused on autonomy, military interoperability, and high-speed efficiency. In a recent feature released on January 9, 2026, Denis Descheemaeker, Head of Research and Innovation at Airbus Helicopters, detailed the manufacturer’s “collaborative bubble” concept and its roadmap for the coming decade.
The strategy, described as a “Three-Horizon” approach, seeks to balance immediate safety improvements with long-term disruptive technologies. According to Descheemaeker, the company is prioritizing technologies that deliver measurable operational benefits, such as the high-speed Racer demonstrator, over projects that lack immediate industrial maturity.
Descheemaeker outlines a comprehensive timeline designed to secure the manufacturer’s competitive edge while addressing immediate pilot needs. This framework allows Airbus to manage resources between upgrading legacy platforms and developing next-generation systems.
A central pillar of the long-term strategy is the integration of crewed helicopters with uncrewed systems, a concept Descheemaeker refers to as the “collaborative bubble.” In this operational model, the helicopter serves as a command center, controlling drones to extend the crew’s situational awareness and operational reach.
This capability was demonstrated during the MUSHER project, a European Defence Fund initiative. In October 2024, Airbus achieved “Level of Interoperability 4” (LOI 4), successfully controlling a drone directly from a helicopter cockpit. The demonstration utilized an Airbus H130 Flightlab and a VSR700 drone operating alongside assets from Leonardo.
“The quest for autonomy begins with understanding the environment surrounding the helicopter… enabling collaboration between crewed and uncrewed systems. This was a joint project, showing that we can work with partners and even competitors to defend Europe and NATO.”
, Denis Descheemaeker, Head of Research and Innovation at Airbus Helicopters
The successful demonstration proved that assets from different manufacturers and nations could communicate on a single network, a critical requirement for future European defense autonomy. Potential use cases include anti-piracy operations, where drones scout ahead of the main aircraft, and firefighting, where tandem drones monitor heat zones.
While autonomy defines the digital future, the Racer demonstrator represents the company’s aerodynamic achievements. The high-speed rotorcraft has become a flagship success story for the 2025–2026 period. In April 2025, the Racer achieved a cruise speed of 240 knots (444 km/h), surpassing its original performance targets.
Beyond speed, the Racer is a testbed for hybridization. It features a unique “Eco-Mode” propulsion system that allows one of its two Aneto-1X engines to be paused during cruise flight. This capability reduces fuel consumption by approximately 25% compared to conventional helicopters of similar weight. Descheemaeker noted the dual objectives of this technology:
“Our objectives here are twofold: to increase safety with electric assistance in the event of failure, but also… to make the helicopter quieter.”
While the official release highlights the successes of the Racer and MUSHER programs, the broader context of Airbus Helicopters’ 2026 strategy reveals a significant pivot regarding Urban Air Mobility (UAM). Industry reports indicate that the commercial launch of the CityAirbus NextGen eVTOL has been paused as of early 2026.
This decision aligns with Descheemaeker’s emphasis on pragmatism. Leadership has cited battery maturity as a primary hurdle, noting that current technology does not yet meet the safety and performance standards required for a viable commercial product. By shifting the CityAirbus NextGen back to a research status rather than an imminent product launch, Airbus is avoiding the “hype trap” that has plagued other eVTOL startups.
Instead, the company is leveraging its “Flying Laboratories”, including the Flightlab (H130), DisruptiveLab, and PioneerLab (H145), to mature the underlying technologies of electrification and automation before committing to serial production of air taxis. This reinforces the “Three-Horizon” strategy: prioritizing technologies that work today (like the Racer’s hybrid Eco-Mode) while continuing research into those required for tomorrow.
Airbus Helicopters Outlines “Three-Horizon” Innovation Strategy for 2026
The “Three-Horizon” Strategic Framework
The “Collaborative Bubble”: Manned-Unmanned Teaming
High-Speed Efficiency: The Racer Demonstrator
AirPro News Analysis: The Shift from eVTOL Hype to Pragmatism
Sources
Photo Credit: Airbus
MRO & Manufacturing
JETMS Moves Production to Lithuania and Focuses UK on Design Hub
JETMS will relocate manufacturing from the UK to Lithuania by 2026, creating a production centre in Kaunas and a design hub in London.
This article summarizes reporting by Runway Girl Network.
Effective January 1, 2026, aircraft interior solutions provider JETMS will restructure its global operations, shifting manufacturing activities from the United Kingdom to Lithuania. According to reporting by Runway Girl Network, the subsidiary of Avia Solutions Group is undertaking this transition to optimize its supply chain and leverage specific regional strengths.
The reorganization involves a clear division of labor between the company’s two primary arms: JETMS Completions Ltd in the UK and JETMS Interiors UAB in Lithuania. As detailed in the coverage, the move aims to unify the brand’s capabilities, offering a comprehensive solution that spans initial design to final installation.
Under the new structure, the company’s facility in Kaunas, Lithuania, will be designated as the Group’s “Production Centre of Excellence.” Reporting indicates that this division will assume responsibility for full-scale cabin manufacturing, refurbishment, and installation projects. The decision leverages the scale of the Lithuanian operations to handle heavy production tasks.
Conversely, the UK division, based at London Biggin Hill Airport, will pivot to become the “Centre of Excellence for Design and Engineering.” According to the announcement, the UK team will focus on high-value technical services, including:
This separation allows the UK branch to concentrate on intellectual property and precision engineering while the Lithuanian branch focuses on manufacturing output.
The transition relies heavily on the capacity of the Lithuanian infrastructure. The Kaunas facility spans approximately 65,000 square feet (6,000 square meters) and is equipped for comprehensive cabin production. Mindaugas Trapenskis, CEO of JETMS Interiors UAB, is set to lead this new production hub.
Stefan Chevalier, the CEO of JETMS, described the move as a logical step for the company’s expansion. In a statement cited by Runway Girl Network, Chevalier emphasized the synergy between the two locations:
“This strategic transition represents a natural evolution in our growth journey, enabling us to combine the design and engineering expertise of our UK team with world-class manufacturing capabilities in Lithuania.”
, Stefan Chevalier, CEO of JETMS
We observe that this restructuring aligns with broader industry trends where aerospace companies seek to lower production costs while retaining high-level engineering talent in established aviation hubs like the UK. By moving labor-intensive manufacturing to Lithuania, a region where parent company Avia Solutions Group has a significant footprint, JETMS likely aims to reduce overheads and streamline logistics. Meanwhile, maintaining the “Centre of Excellence” in London ensures the company retains its prestige and certification authority in the highly regulated UK aviation market.
JETMS to Relocate Production to Lithuania, Reposition UK as Design Hub
Strategic Division of Operations
Facility Capabilities and Leadership
AirPro News Analysis
Sources
Photo Credit: JETMS Holdings
MRO & Manufacturing
KF Aerospace Certifies World’s First Boeing 737-800 Combi Conversion
KF Aerospace secures Transport Canada certification for the Boeing 737-800 Combi, enabling mixed cargo and passenger operations for Air Inuit.
This article is based on an official press release from KF Aerospace.
On January 8, 2026, KF Aerospace announced a significant milestone in aviation engineering: the successful certification of the world’s first Boeing 737-800 Combi conversion. Transport Canada has issued Supplemental Type Certificate (STC) #SA25-72 to the Kelowna-based maintenance, repair, and overhaul (MRO) provider, officially approving the modification that transforms a standard passenger jet into a dual-purpose Commercial-Aircraft capable of carrying both freight and passengers on the main deck.
The launch customer for this program is Air Inuit, a carrier vital to Northern Quebec’s supply chain. According to the announcement, Air Inuit took Delivery of the first converted aircraft (Registration C-FTUW) in October 2025, with a second aircraft currently undergoing conversion. This Certification marks the culmination of a complex engineering Partnerships between KF Aerospace and Aeronautical Engineers, Inc. (AEI).
The KF Aerospace conversion addresses a specific market need for flexibility by splitting the aircraft’s main deck into two distinct sections. Unlike standard freighters or passenger-only variants, this “Combi” configuration allows operators to maximize utility on routes where demand for both cargo and travel fluctuates.
According to the technical data released by KF Aerospace, the converted Boeing 737-800 features a split-deck layout:
To facilitate the loading of large freight, the conversion utilizes the AEI 737-800SF large cargo door (86″ x 137″). Safety remains paramount in this mixed-use environment; the aircraft is equipped with a fixed, rigid cargo bulkhead that serves as a smoke barrier between the freight and passenger compartments. Additionally, the Class B main deck cargo compartment features advanced pneumatic fire detection and Halon-based fire suppression systems.
Despite the industrial utility of the forward section, the aft cabin retains modern passenger amenities. The press release notes that the cabin includes a fully redesigned interior with large overhead bins, optimized LED lighting, and Starlink high-speed internet connectivity. The aircraft is also certified for medical stretcher installation, a critical capability for medical evacuations in remote regions.
“KF is proud to deliver a world-first solution that expands what’s possible in aircraft conversion… This project reflects the ingenuity, dedication, and deep technical expertise of our entire team.”
Gregg Evjen, President of KF Aerospace
This program was developed specifically to replace the aging fleets of Boeing 737-200 Combi aircraft, which have served remote northern communities for over four decades. The 737-200 series has long been the workhorse of the Arctic due to its gravel runway capabilities, but these airframes are becoming increasingly difficult to maintain and fuel-inefficient. According to KF Aerospace, the shift to the 737-800 platform offers a dramatic improvement in efficiency, reducing fuel emissions by approximately 40% compared to the legacy aircraft. This alignment with modern sustainability goals is a key driver for operators like Air Inuit.
“Creating unique solutions to cater to unique needs is part of Air Inuit’s DNA. Together with KF Aerospace, we are modernizing northern jet air services with our main focus of better serving Nunavik’s people.”
Christian Busch, CEO of Air Inuit
While the fuel savings and modernization are clear benefits, AirPro News notes a significant operational distinction in this transition. The legacy Boeing 737-200 was famous for its ability to land on gravel runways, a necessity for many remote Arctic outposts. The Boeing 737-800, however, generally requires paved runways.
This technical limitation suggests a shift in logistics strategy for carriers like Air Inuit. We anticipate the new 737-800 Combis will likely serve as high-capacity “trunk” liners connecting major paved hubs (such as Montreal to Kuujjuaq), while smaller turboprops will likely handle the “last mile” distribution to communities with gravel strips. This evolution represents a modernization of the entire northern supply chain, moving away from single-aircraft direct service to a more segmented hub-and-spoke model.
Sources: KF Aerospace Press Release, Air Inuit Innovation Page
KF Aerospace Secures Certification for World’s First Boeing 737-800 Combi
Technical Specifications and Configuration
Interior Layout and Capacity
Passenger Experience
Strategic Importance for Northern Operations
AirPro News Analysis: The Infrastructure Shift
Sources
Photo Credit: KF Aerospace
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