China Airlines Selects AAR for Landing Gear Maintenance, Repair and Overhaul

Wood Dale, Il., /PRNewswire-FirstCall via COMTEX News Network/ -- AAR (NYSE: AIR) announced today at Asian Aerospace 2006 that it has been selected by China Airlines to provide maintenance, repair and overhaul services for China Airlines' 737-800 landing gear. China Airlines represents AAR's first 737 New Generation landing gear customer.

AAR will help China Airlines maximize the availability of its 737-800 aircraft by performing timely repair and overhaul services and providing replacement landing gear from its inventory of rotable spares. China Airlines will also have access to AAR's extensive inventory of rotable landing gear components.

"We look forward to working with China Airlines and are pleased that they have selected AAR to maintain and overhaul their 737-800 landing gear," said Rahul Shah, Managing Director, Asia Pacific Operations for AAR. "We see the Asia Pacific region as one of the fastest growing aviation markets in the world and look forward to expanding our capabilities and extending the services we offer to our customers in this region. The AAR Landing Gear Services joint venture in Malaysia is a great example of how AAR is working to provide more services to more customers in new, fast growing markets."

"We are excited to be a part of China Airlines' continuing cost savings initiatives," said Pastor Lopez, General Manager, AAR Landing Gear Services. "With the combination of our landing gear maintenance and exchange services and access to an inventory of rotable components, we will provide China Airlines with the quality support that is critical when it comes to reducing aircraft downtime."

In other news, AAR Landing Gear Services Sdn. Bhd., a joint venture between AAR International, Inc. and Malaysian aircraft maintenance provider, AIROD Sdn. Bhd., recently received certification from the Malaysian Department of Civil Aviation (DCA) and passed its Federal Aviation Administration (FAA) certification audit. Achieving these regulatory milestones enables the business to commence operations and begin serving customers in the Asia Pacific region from the new Malaysian-based landing gear MRO facility.

About AAR

AAR is a leading provider of products and value-added services to the worldwide aviation/aerospace industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve airline and defense customers through four operating segments: Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems and Aircraft Sales and Leasing. More information can be found at http://www.aarcorp.com.

About AAR Landing Gear Services

AAR Landing Gear Services, an operating unit of AAR, specializes in the maintenance, repair, overhaul and exchange of landing gear for commercial and regional aircraft. AAR's workmanship is backed by engineering and airworthiness teams that carry out stringent quality inspections on procedures that include disassembly, assembly, painting, plating, machining and nondestructive testing.

About China Airlines

China Airlines is Taiwan's premier airline, offering convenient service with routes extending to major cities in the U.S., Europe, Northeast Asia and Southeast Asia. China Airlines flies to destinations in 60 cities in 23 countries, as of Jan 31, 2006.

This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 7, entitled "Factors Which May Affect Future Results", included in the Company's May 31, 2005 Form 10-K. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company's control. The Company assumes no obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR's filings with the Securities and Exchange Commission.

SOURCE AAR CORP.


Contact: Chris Mason, Director of Corporate Communications of AAR, +1-630-227-2062, chris.mason@aarcorp.com