AAR’s $1.8 Billion Deal Bets on Aircraft Maintenance Demand

AAR is buying control of aircraft maintenance firm MRO Holdings for $1.8 billion. The deal adds capacity as airlines keep older jets flying, but investors will weigh that growth against its financing costs.

Airlines are keeping aircraft in service for longer, and AAR wants a larger share of the work required to maintain them.

The US aviation services company has agreed to buy a 65% stake in MRO Holdings for about $1.8 billion. Together, the businesses would have capacity to service nearly 3,000 aircraft a year in their maintenance hangars.

The deal would expand AAR’s operations across the US and Latin America. It also comes as delays in new aircraft deliveries and supply chain constraints increase demand for work on existing fleets.

AAR plans to fund the purchase with new debt, roughly $780 million in shares issued to MRO Holdings shareholders, and proceeds from a separate equity investment. It will have the option to buy the remaining 35% within six years of closing.

For investors, the opportunity is clear: more maintenance capacity in a market where airlines need it. The question is whether that growth will outweigh the cost of financing the deal and issuing new shares.

The transaction is expected to close by February 2027, subject to regulatory approval and other conditions.