Republic's Embraer 170-series heavy maintenance deal has landed at AAR Corp.—a development that suggests the recent OEM push to capture more of their aftermarket services may not overwhelm the open market.
AAR is not stranger to E-Jet MRO. The aftermarket specialist's existing Embraer E-jet heavy maintenance customers include Republic, Mesa, JetBlue, and Air Canada, with the recent purchase of Premier Aviation boosting the workload.
Embraer, meanwhile, is no stranger to the work either. In fact, it had Republic's E-Jet heavy maintenance contract before the carrier's parent company entered bankruptcy in 2016 in a bold move meant to optimize what was a profitable operation. One result: a 188-aircraft fleet consisting of E-170s and E-175—and soon, the need for a new airframe MRO deal.
While Boeing and Airbus have generated more headlines in their pursuit of more aftermarket dollars, Embraer has been right there with its larger competitors. The company is on the record saying it wants to boost its services from 15% of its annual revenues to about 25%. In the U.S, it has a well-established "center of excellence," Embraer Aircraft Maintenance Services, in Memphis.
That's where the Republic work was done. Starting in January, it will shift to AAR's facility in Indianapolis, which happens to be Republic's home base.