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AAR CORP. Expands Oklahoma City MRO Facility to Support Alaska Airlines

AAR CORP. completes $37.5M expansion of its Oklahoma City MRO facility, adding capacity and digital systems to support Alaska Airlines’ Boeing 737 fleet.

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This article is based on an official press release from AAR CORP. and verified industry data.

AAR CORP. Completes Major MRO Expansion in Oklahoma City to Support Alaska Airlines Fleet

AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, has substantially completed a major expansion of its Airframe Maintenance, Repair, and Overhaul (MRO) facility at Will Rogers World Airport in Oklahoma City. According to the company’s official announcement on January 28, 2026, the project adds significant capacity designed to support a long-term commitment from Alaska Airlines.

The expansion creates 200 new full-time jobs in the region and introduces advanced digital capabilities to the maintenance floor. The new facility is situated adjacent to AAR’s existing hangar, reinforcing the company’s 50-year presence in Oklahoma. This development comes as airlines increasingly seek to secure long-term maintenance slots to ensure fleet reliability amid high travel demand.

Facility Specifications and Capacity

The newly completed project involves the addition of more than 80,000 square feet of hangar and warehouse space. AAR reports that the expansion includes three new maintenance bays specifically configured to accommodate all variants of the Boeing 737, including the larger 737 MAX 10 model. This physical growth allows AAR to induct additional Alaska Airlines aircraft immediately.

The total cost of the project was approximately $37.5 million. Funding was supported by a collaborative effort between the private sector and state government. The State of Oklahoma provided a $20 million grant to facilitate the construction, while the Oklahoma City Airport Trust offered rent concessions to ensure the project’s viability.

Strategic Partnerships with Alaska Airlines

This expansion is the direct result of a deepened partnership between AAR and Alaska Airlines, a relationship that has spanned over two decades. The new bays are dedicated primarily to servicing Alaska’s growing fleet of Boeing 737 aircraft.

In a statement regarding the completion of the facility, John M. Holmes, Chairman, President, and CEO of AAR, emphasized the collaborative nature of the project:

“We are very grateful for Alaska’s trust… We are excited for this new chapter and our decades-long relationship.”

Holmes further noted that the “friendly environment” of the airport and the “availability of labor” were critical pillars that enabled the expansion to proceed.

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Digital Transformation and “Paperless” Operations

Beyond physical square footage, the expansion marks a technological milestone for AAR. The company describes the new facility as a leader in digital MRO operations. According to the announcement and industry data, AAR is implementing a fully paperless maintenance system, a move they claim is an industry first for a third-party MRO operating across multiple customers.

The initiative replaces traditional paper work packages, which can exceed 600 pages per check, with digital tablets and interfaces. This shift is designed to reduce turnaround times, improve compliance tracking, and eliminate significant paper waste. The system utilizes software integrations such as Airvolution for cloud-based repair management and Trax for maintenance workflows.

AirPro News Analysis

The completion of AAR’s Oklahoma City expansion highlights a critical trend in the aviation aftermarket: the race for dedicated capacity. As airlines like Alaska Airlines extend the lifecycles of their existing fleets while awaiting new deliveries, the demand for heavy maintenance slots has outpaced supply. By securing dedicated bays, Alaska Airlines mitigates the risk of maintenance bottlenecks.

Furthermore, the shift toward a “paperless” hangar is not merely an environmental gesture; it is an efficiency play. In the low-margin MRO sector, digitizing task cards allows for real-time data entry and faster regulatory audits, potentially shaving hours or days off a heavy check. If AAR successfully scales this digital model across its network, it could set a new standard for third-party maintenance efficiency.

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Sources: AAR CORP. Press Release

Photo Credit: Oklahoma Business Voice

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MRO & Manufacturing

FL Technics Opens New Aircraft Components Warehouse in Dubai

FL Technics launches a new warehouse near Dubai South airport to enhance regional aircraft component support and reduce delivery times.

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This article is based on an official press release from FL Technics.

FL Technics Opens New Aircraft Components Warehouse in Dubai to Boost Regional Support

Global maintenance, repair, and overhaul (MRO) provider FL Technics has officially inaugurated a new Engine, Airframe, and Materials Services (EAMS) warehouse in Dubai. Announced on January 27, 2026, the facility is strategically located in Dubai South, adjacent to Al Maktoum International Airport (DWC). This opening marks a significant shift in the company’s logistics strategy, moving from a centralized global model to a regionalized approach designed to support the growing aviation sector in the Middle-East and Africa.

The new facility focuses on high-value rotable components, parts that can be repaired and reused, which are critical for daily flight operations. By positioning inventory closer to major regional operators, FL Technics aims to drastically reduce delivery times, mitigating the costly impact of “Aircraft on Ground” (AOG) situations.

Strategic Shift to Regional Logistics

Historically, FL Technics serviced its Middle Eastern clients through global hubs located in Vilnius, Lithuania, Singapore, and Miami. While effective for broad coverage, this model often resulted in multi-day lead times for specific components needed in the Gulf region. The new Dubai warehouse allows for immediate access to critical stock, cutting delivery windows from days to mere hours for local airlines.

Data-Driven Inventory Management

According to the company, the inventory selection for the new warehouse is not arbitrary. Stocking decisions are driven by historical operational data, ensuring the facility holds the specific components most frequently required by fleets operating in the Middle East and Africa. This targeted approach is intended to maximize the efficiency of the supply chain and ensure high availability rates for partner airlines.

Viktor Bulanov, Head of Sales and Customer Support Unit at FL Technics, emphasized the operational necessity of this expansion in a statement regarding the launch:

“Component availability is one of the key factors in aircraft maintenance. By placing our warehouse closer to customers in the Middle East, we can respond faster to their needs and support them more efficiently.”

Market Context and Future Growth

The decision to establish a physical foothold at Dubai South aligns with broader industry trends. The Middle East MRO market is currently experiencing robust growth, driven by aggressive fleet expansion from major carriers and increased aircraft utilization rates. Industry forecasts suggest the regional MRO market value could rise from approximately $10.5 billion in 2026 to over $13 billion by 2031.

Positioning for the Future at DWC

Al Maktoum International Airport (DWC) is projected to become the world’s largest airport upon its completion. By securing a location within this future logistics ecosystem, FL Technics is positioning itself to serve the long-term needs of the region. This warehouse complements the company’s existing line maintenance station at DWC, creating a comprehensive support network for both passenger and cargo operators.

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AirPro News Analysis

The Rise of Independent MROs in the Gulf

We view this expansion as part of a critical maturation in the Middle East aviation market. Historically, the region has been dominated by airline-affiliated MRO providers, such as Emirates Engineering. However, as fleets diversify and low-cost carriers expand, there is a growing demand for independent, third-party providers who can offer flexible and competitive alternatives.

FL Technics, a subsidiary of Avia Solutions Group, is capitalizing on this gap. By offering localized support without the overhead of a legacy carrier affiliation, they are well-positioned to capture the “component repair” segment, which is currently one of the fastest-growing verticals within the MRO sector. This move also signals confidence in the region’s stability as a global transit hub, despite geopolitical fluctuations.

Frequently Asked Questions

What is the primary function of the new warehouse?
The facility is an Engine, Airframe, and Materials Services (EAMS) warehouse dedicated to storing and distributing high-value rotable aircraft components to reduce lead times for regional airlines.

Where is the new facility located?
It is located in Dubai South, near Al Maktoum International Airport (DWC), a rapidly developing aviation hub in the United Arab Emirates.

How does this benefit airlines in the region?
By stocking parts locally rather than shipping them from Europe or Asia, FL Technics can reduce delivery times from days to hours, helping airlines minimize flight delays caused by maintenance issues.

Who owns FL Technics?
FL Technics is part of Avia Solutions Group, the world’s largest ACMI (Aircraft, Crew, Maintenance, and Insurance) provider.

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Photo Credit: FL Technics

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Boeing Q4 2025 Profit Boosted by Asset Sale Amid Operational Challenges

Boeing reports Q4 2025 profit from Digital Aviation Solutions sale; Spirit AeroSystems acquisition completed, but core operations show ongoing losses.

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Boeing Reports Q4 2025 Profit Driven by Asset Sale; Core Operations Face Continued Pressure

Boeing has released its financial-results for the fourth quarter and full year of 2025, reporting a headline profit largely attributed to the strategic sale of its Digital Aviation Solutions business. According to the company’s official press release, revenue for the quarter surged to $23.9 billion, a 57% increase compared to the same period in 2024. However, beneath the headline figures, the aerospace giant continues to grapple with operational challenges and costs associated with stabilizing its production lines.

The fourth quarter marked a significant turning point for Boeing’s corporate structure. The company finalized its acquisitions of Spirit AeroSystems in December 2025, a move designed to consolidate manufacturing quality and safety. Simultaneously, Boeing completed the divestiture of its Digital Aviation Solutions unit, generating cash used to offset the debt incurred from the Spirit acquisition. While these moves reshaped the balance sheet, core operational metrics indicate that the manufacturers is still in a recovery phase.

CEO Kelly Ortberg emphasized the company’s focus on the future, stating in the release that while progress is evident, the priority remains on stabilizing operations and fully integrating Spirit AeroSystems to restore Boeing’s reputation for quality.

Financial Overview: A Complex Picture

Boeing’s reported GAAP earnings per share (EPS) for the fourth quarter stood at $10.23, a stark contrast to the loss of $5.46 per share reported in Q4 2024. However, the company disclosed that this figure includes a substantial one-time gain of $11.83 per share from the sale of the Digital Aviation Solutions business. When excluding this divestiture, the core result reflects an operational loss.

According to financial data released by the company:

  • Revenue: $23.9 billion (up from $15.2 billion in Q4 2024).
  • Net Earnings: $8.2 billion, compared to a net loss of $3.86 billion in the prior year.
  • Operating Cash Flow: $1.3 billion for the quarter.

For the full year of 2025, Boeing reported total revenue of $89.5 billion, a 34% increase year-over-year, and delivered 600 commercial-aircraft, the highest annual total since 2018.

AirPro News Analysis

While the headline profit of $10.23 per share appears robust, it masks the underlying reality of Boeing’s manufacturing economics. Without the $11.83 per share gain from selling off assets, the company would have posted a core loss of approximately $1.91 per share. This suggests that the cost of building and delivering jets remains higher than the revenue they generate, driven by supply chain inefficiencies and the heavy costs of reintegrating Spirit AeroSystems. The “beat” on revenue confirms strong demand, but the operational losses highlight that profitability from core manufacturing is still a work in progress.

Strategic Restructuring

The fourth quarter of 2025 was defined by two major transactions that have fundamentally altered Boeing’s operational footprint.

Acquisition of Spirit AeroSystems

In December, Boeing completed the acquisition of Spirit AeroSystems, bringing the manufacturing of key aerostructures, such as fuselages, back in-house. The deal had an enterprise value of approximately $8.3 billion, including net debt. The strategic goal, as outlined by Boeing management, is to improve safety protocols and production stability by directly controlling the quality of airframe components. The company noted that this acquisition negatively impacted Commercial Airplanes segment margins by approximately 1.5 percentage points in the quarter.

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Divestiture of Digital Aviation Solutions

To finance the reintegration of its supply chain, Boeing sold its Digital Aviation Solutions business, which includes Jeppesen and ForeFlight, to private equity firm Thoma Bravo. The transaction generated approximately $10.6 billion in cash proceeds. Boeing stated that these funds were immediately deployed to repay debt associated with the Spirit AeroSystems purchase, effectively keeping the company’s leverage neutral regarding the acquisition.

Operational Updates

Commercial Airplanes

The Commercial Airplanes division delivered 160 aircraft in the fourth quarter, contributing to revenue of $11.4 billion, more than double the $4.8 billion recorded in Q4 2024. Despite the revenue jump, the segment reported a negative operating margin of -5.6%. While this is a significant improvement from the -43.9% margin seen a year ago, it underscores the continued high costs of production.

Production rates for key programs have increased:

  • 737 MAX: Production has risen to 42 airplanes per month.
  • 787 Dreamliner: The program is transitioning to a rate of 8 airplanes per month.

The company also reported a record total backlog valued at $682 billion, comprising over 6,100 commercial aircraft.

Defense, Space & Security

The Defense, Space & Security segment reported revenue of $7.4 billion, a 37% increase year-over-year. However, the unit posted an operating loss of $507 million (a -6.8% margin). The results were weighed down by $0.6 billion in losses on the KC-46A Tanker program, which continues to face supply chain costs and production support challenges.

Market Reaction and 2026 Outlook

Despite the reported profit, market reaction was tepid. Boeing stock fell approximately 1.5% to 2.5% in pre-market trading following the release. Analysts have characterized the report as a “trust test,” noting that while the revenue growth confirms strong market demand, the wider-than-expected operational losses indicate that factory inefficiencies persist.

Looking ahead to 2026, Boeing reaffirmed its guidance for free cash flow between $1 billion and $3 billion for the full year. Management cautioned that the company expects to burn cash in the first half of 2026 due to seasonal factors and the integration of Spirit AeroSystems, with positive cash flow generation expected to return in the second half of the year.

FAQ

Why did Boeing report a profit if they lost money on operations?

Boeing reported a net profit because of a one-time gain of roughly $11.83 per share from selling its Digital Aviation Solutions business. This sale generated enough cash to cover the operational losses from building airplanes and the costs associated with the Spirit AeroSystems acquisition.

What is the status of the Spirit AeroSystems acquisition?

The acquisition was finalized in December 2025. Boeing now owns Spirit AeroSystems, allowing it to bring fuselage manufacturing in-house to better control quality and safety.

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How many planes is Boeing building per month?

As of the fourth quarter of 2025, Boeing is producing 42 737 MAX airplanes per month and is transitioning to 8 787 Dreamliners per month.

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Photo Credit: Boeing

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MRO & Manufacturing

Pilatus Aircraft Opens New Manufacturing Facility in Florida

Pilatus Aircraft launches a $200M manufacturing hub in Sarasota, Florida, expanding U.S. operations with sustainable, hurricane-resistant facilities.

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This article is based on an official press release from Pilatus Aircraft Ltd.

Pilatus Aircraft Breaks Ground on Major U.S. Manufacturing Hub in Florida

Swiss aerospace manufacturer Pilatus Aircraft Ltd has officially broken ground on a new flagship facility at the Sarasota Bradenton International Airport (KSRQ) in Florida. The ceremony, held in late January 2026, marks a pivotal shift in the company’s strategy, transitioning its U.S. operations from sales and service, to full-scale manufacturing. According to the company, the new site is designed to become a “center of excellence” serving North-America and South America.

The expansion represents a significant financial commitment to the region. Pilatus has outlined a phased development plan on the 17-acre site, beginning with a sales and service center and evolving into a final assembly line for its popular PC-12 and PC-24 aircraft. Company officials stated that the move is intended to streamline logistics and place production closer to their largest customer base.

Investment and Facility Specifications

According to details released by Pilatus and the Sarasota Bradenton International Airport, the project involves a substantial capital investment and a long-term construction timeline. The initial phase, focused on a Sales and Service Center, is valued at approximately $50 million. Upon the completion of all phases, including the manufacturing plant, the total projected investment is estimated at $200 million.

The facility will be constructed in two primary stages:

  • Phase 1: A 70,000-square-foot facility dedicated to sales, service, and aircraft delivery, expected to open in late 2027.
  • Phase 2: A 110,000-square-foot manufacturing and assembly plant, scheduled to follow by the end of the decade.

In terms of employment, Pilatus projects the creation of approximately 50 initial jobs in sales, service, and design. As manufacturing operations ramp up, the company expects the workforce to grow to over 300 employees, including mechanics, engineers, and technicians.

Strategic Shift: “In America, for Americans”

Historically, Pilatus has concentrated its production capabilities at its headquarters in Stans, Switzerland. This new Florida facility represents a strategic diversification of its supply chain. By establishing a final assembly line in the United States, Pilatus aims to mitigate risks associated with currency fluctuations and transatlantic shipping logistics.

Markus Bucher, CEO of Pilatus Aircraft Ltd, emphasized the importance of the U.S. market in the company’s official statement:

“This flagship facility will be our fifth location in the USA, and will set new standards for quality, expertise, and technology in the southeastern United States. In America, we will build airplanes for Americans. We are establishing Sarasota as a major production site, serving our customers right where they are.”

This development coincides with the consolidation of the manufacturer’s American operations. Effective January 1, 2026, the company integrated its various U.S. entities into a single organization, Pilatus Aircraft USA Ltd. The Sarasota facility will serve as the headquarters for this unified entity.

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AirPro News Analysis

The decision by Pilatus to establish final assembly lines in Florida mirrors a broader trend among European aerospace manufacturers seeking to “onshore” production in their most lucrative markets. Similar to Airbus‘s establishment of assembly lines in Mobile, Alabama, Pilatus is moving to insulate itself from supply chain volatility while embedding itself deeply into the local economy. By marketing “American-built” aircraft, Pilatus likely aims to strengthen its appeal to U.S. corporate and private operators who prioritize domestic sourcing, while simultaneously reducing the lead times and costs associated with ferrying aircraft from Switzerland.

Sustainability and Resilience

The new facility is being designed with strict environmental and safety standards. Pilatus has announced that the site is designed to achieve LEED Gold certification. Key sustainability features include rooftop solar panels to reduce dependency on the local power grid and the utilization of well water for irrigation to minimize impact on public utilities.

Given the location in Florida, resilience against severe weather is a core component of the design. The buildings are engineered to withstand hurricane-force winds with a safety margin exceeding code requirements by 15%. Additionally, the facility will feature raised floors to mitigate flood risks.

Rick Piccolo, President and CEO of Sarasota Bradenton International Airport, highlighted the regional impact of the agreement:

“This agreement marks a significant milestone in the economic development not only of the airport but also the region.”

Background on Pilatus Aircraft

Founded in 1939, Pilatus remains the only Swiss company to develop, produce, and sell aircraft globally. The company is best known for the PC-12, the world’s best-selling single-engine turboprop, and the PC-24, a “Super Versatile Jet” capable of operating from short, unpaved runways. Prior to this expansion, Pilatus maintained a U.S. footprint primarily through its facility in Broomfield, Colorado, employing roughly 400 people across the country.

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Photo Credit: Pilatus Aircraft

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