Connect with us

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.

Published

on

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. to Close Indianapolis Maintenance Hub, Impacting 329 Workers

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.

Strategic Consolidation Following HAECO Acquisition

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.

Facility Condition and Lease Timing

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.

Impact on Workforce and Local Economy

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.

Historical Context of the Site

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.

Financial Health and Market Trends

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.

AirPro News Analysis

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.

Frequently Asked Questions

When will the layoffs begin?
According to the WARN notice, the first separations are scheduled to begin on February 15, 2026.

Is AAR Corp. in financial trouble?
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.

What will happen to the facility?
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

Continue Reading
Click to comment

Leave a Reply

MRO & Manufacturing

AMAC Aerospace Turkey Redelivers Three Boeing 737 Aircraft

AMAC Aerospace Turkey completes concurrent C checks on two BBJ 737s and one commercial 737-800 at its Bodrum MRO facility.

Published

on

AMAC Aerospace Turkey has simultaneously redelivered three Boeing 737 aircraft, including two VIP-configured Boeing Business Jets and one commercial airliner, following extensive maintenance programs at its Bodrum facility.

In a press release issued on August 14, 2026, the maintenance, repair, and overhaul (MRO) provider detailed the completion of complex C checks, out-of-phase work, and structural defect rectifications across the three airframes. The concurrent redeliveries highlight the Bodrum facility’s dual capability in servicing both high-density commercial cabins and bespoke VIP interiors.

VIP Boeing Business Jet maintenance

The first VIP aircraft, a Boeing BBJ 737-900, underwent a comprehensive C check. Technicians removed and reinstalled the cabin interior, galley, aft cargo compartment, auxiliary fuel tank, and forward dry area. The maintenance scope also required fan blade removal and lubrication, alongside the replacement of 42 oxygen generators.

A second VIP aircraft, a Boeing BBJ 737 MAX, arrived at the Turkish facility for A1 and A2 inspections combined with out-of-phase maintenance tasks. The work package included the removal and installation of VIP seating and divans, engine washing, and a borescope inspection on one of the powerplants. AMAC Aerospace personnel also updated databases for the aircraft’s Flight Management System (FMS) and Enhanced Ground Proximity Warning System (EGPWS). The company noted that technicians worked overtime to expedite the redelivery and accommodate the customer’s flight schedule.

Commercial airliner checks and defect rectification

The third airframe, a commercial Boeing 737-800, required a standard C check encompassing both dry and wet area inspections. The maintenance team removed and reinstalled the Auxiliary Power Unit (APU), lavatories, galleys, cargo areas, cabin ceilings, and sidewalls to facilitate the structural inspections.

During the inspection phase, technicians identified cracking on the vapor barrier and the upper hinge box of the galley door. According to the company, rectifying these structural defects necessitated significant avionics modification work before the aircraft could be cleared for return to service.

AirPro News analysis

We note that this triple redelivery in Bodrum closely follows AMAC Aerospace’s recent completion of concurrent maintenance on five Boeing BBJ 737 aircraft at its Basel, Switzerland headquarters on August 10, 2026. Combined with the July 17, 2026 conclusion of a three-aircraft commercial Boeing 737 C check contract in Turkey, the MRO provider is demonstrating sustained throughput capacity for the 737 family across its European and Middle Eastern footprint. The ability to pivot between VIP outfitting removal and commercial structural repairs within the same hangar space remains a distinct operational advantage for facilities targeting mixed-fleet operators.

Sources: AMAC Aerospace

Photo Credit: AMAC Aerospace

Continue Reading

MRO & Manufacturing

HAECO and CALC Sign MoU for Hong Kong Engine Support Platform

HAECO and CALC signed an MoU on August 20, 2026, to establish a joint engine lifecycle support platform in Hong Kong.

Published

on

Hong Kong Aircraft Engineering Company Limited (HAECO) and China Aircraft Leasing Group Holdings Limited (CALC) signed a Memorandum of Understanding (MoU) on August 20, 2026, to establish a joint engine lifecycle support platform in Hong Kong.

The partnership, announced in a joint press release, targets regional aviation support capabilities by focusing on engine quick-turn services, hospital repairs, and asset management. The initiative also aims to optimize the use of used serviceable materials (USM) to enhance value across the aircraft lifecycle and improve supply chain resilience.

Strategic focus on engine lifecycle management

The collaboration merges HAECO’s technical maintenance capabilities with CALC’s aircraft leasing and asset management portfolio. The initial operational focus will center on specialized engine maintenance, specifically quick-turn and hospital repairs. These services are designed to address specific engine issues and return powerplants to service without requiring a full performance restoration shop visit.

HAECO Group Chief Executive Officer Richard Sell highlighted the strategic alignment between the two organizations.

“The timing of the partnership is significant. It brings together two Hong Kong-based companies with a shared ambition to support the industry’s future growth and reinforce Hong Kong’s position in the global aviation value chain,” Sell stated in the release.

Bolstering Hong Kong as an aviation hub

The MoU aligns with broader efforts to expand aviation infrastructure and services in the region. CALC, which became Asia’s first listed aircraft leasing company when it joined The Stock Exchange of Hong Kong Limited in 2014, views the partnership as a step toward advancing high value-added aviation services.

CALC Chief Executive Officer Mike Poon noted that the agreement aims to enhance aircraft asset utilization and unlock new opportunities across the aviation value chain, reflecting the vision of China’s 15th Five-Year Plan.

The agreement follows recent expansions by HAECO in the engine maintenance sector. On July 22, 2026, the maintenance, repair, and overhaul (MRO) provider opened a new engine workshop in Hong Kong to increase capacity. On the same date, HAECO established an Elite-Level agreement with Woodward to support the global CFM International LEAP engine fleet.

AirPro News analysis

We view this partnership as a highly complementary alignment of assets. HAECO brings extensive technical infrastructure and a global workforce of approximately 15,000 staff across 14 operating companies. CALC provides the asset management framework and a steady pipeline of leased aircraft requiring lifecycle management. The explicit focus on used serviceable materials (USM) is particularly notable. As the global aviation industry continues to navigate supply chain bottlenecks and new-generation engine durability challenges, optimizing USM recovery and deployment has become a critical strategy for controlling maintenance costs and minimizing aircraft downtime.

Sources: HAECO Group

Photo Credit: HAECO Group

Continue Reading

MRO & Manufacturing

B&H Worldwide Opens New Auckland Aerospace Logistics Facility

B&H Worldwide relocated its New Zealand operations to Mangere, near Auckland Airport, offering AOG support and 3PL services.

Published

on

Aerospace logistics provider B&H Worldwide has relocated its New Zealand operations to a larger facility near Auckland Airport, expanding its capacity to support airlines, maintenance providers, and aerospace suppliers in the Oceania region.

In a press release issued on August 20, 2026, the company announced that the new site in Mangere became fully operational on June 8, 2026. The expansion follows a recent private equity investment aimed at scaling the logistics firm’s global footprint.

Facility Capabilities and Strategic Location

The new warehouse and office complex is situated at 197 Montgomerie Road in Mangere, positioning the operation less than ten minutes from Auckland Airport (AKL). This proximity is designed to expedite critical shipments for the aviation sector, including 24/7 Aircraft on Ground (AOG) support. The facility provides comprehensive third-party logistics (3PL) warehousing, inventory management, customs clearance, and direct airside access for Original Equipment OEMs, lessors, and MRO providers.

B&H Worldwide New Zealand Branch Manager Lee Hedges stated that the relocation represents a critical step in strengthening the company’s regional service offerings.

“Its proximity to Auckland Airport, combined with our specialist customs expertise, secure storage capabilities and around-the-clock AOG support, enables us to respond quickly and efficiently to our customers’ requirements,” Hedges said.

Regional Expansion and Recent Operations

The Auckland expansion is part of a broader growth strategy for B&H Worldwide, supported by a March 26, 2026, investment from global private equity firm Sun European Partners. The capital injection was structured to fund the logistics company’s expansion across Asia, Europe, and the United States.

Building on its New Zealand operations, the company is looking to replicate this logistics model in Australia. During the RotorTech 2026 event in June, B&H Worldwide indicated it is actively exploring a similar 3PL warehousing setup in Brisbane.

The company has demonstrated specialized handling capabilities in the local market prior to the facility upgrade. In February 2026, B&H Worldwide managed the transport of a decommissioned Airbus A330 cockpit from the United Kingdom to Christchurch, delivering the unit to Pacific Simulators for conversion into a flight training device.

AirPro News analysis

The formal announcement of the Auckland facility’s opening on August 20, 2026, more than two months after it became fully operational on June 8, suggests a phased approach to the company’s regional rollout following the Sun European Partners investment. By securing a larger footprint adjacent to New Zealand’s primary aviation hub, B&H Worldwide is positioning itself to capture a larger share of the specialized MRO and AOG logistics market in Oceania. We expect the company to leverage this operational template as it pursues its stated goal of establishing a parallel facility in Brisbane.

Sources: B&H Worldwide

Photo Credit: B&H Worldwide

Continue Reading
Every coffee directly supports the work behind the headlines.

Support AirPro News!

Advertisement

Follow Us

newsletter

Latest

Categories

Tags

Every coffee directly supports the work behind the headlines.

Support AirPro News!

Popular News