In a strategic move to broaden its aviation services portfolio, AAR Corp acquires Aircraft Reconfig Technologies in a definitive agreement valued at $35 million in cash, a deal that will immediately enhance AAR’s engineering and FAA certification capabilities within its Repair & Engineering segment.
AAR CORP (NYSE: AIR), a leading provider of maintenance, repair and overhaul (MRO) services for commercial and government aircraft, announced the all-cash transaction with ZIM Aircraft Cabin Solutions, set to close in the fourth quarter of its Fiscal Year 2026, subject to customary conditions and regulatory approvals.
Expanding a Comprehensive Aviation Services Platform
AAR Corp is widely recognized as a leading independent provider of maintenance, repair, and overhaul (MRO) services for commercial airlines, government operators, and defense customers. Over the years, the company has steadily evolved from a traditional MRO provider into a diversified aviation services organization offering supply chain management, component repair, engineering services, and fleet support solutions.
The acquisition of Aircraft Reconfig Technologies represents a continuation of this evolution. Rather than relying heavily on external engineering and certification partners, AAR is bringing critical capabilities in-house—allowing it to control more of the aircraft modification lifecycle from design and engineering through certification and execution.
By integrating Aircraft Reconfig Technologies into its Repair & Engineering segment, AAR aims to deliver faster turnaround times, reduce project complexity, and increase flexibility when addressing customer requirements for aircraft interior modifications.
About Aircraft Reconfig Technologies
Aircraft Reconfig Technologies is a well-established engineering firm specializing in passenger aircraft interior reconfiguration. Founded in 1990 and headquartered in Greensboro, North Carolina, the company has built a strong reputation over more than three decades for delivering high-quality engineering, design, and certification services to airlines across the globe.
With a team of approximately 100 engineers, designers, and aviation professionals, Aircraft Reconfig Technologies provides end-to-end project management for cabin modification programs. Its expertise spans seating changes, galley and lavatory reconfigurations, in-flight entertainment upgrades, and other interior enhancements designed to improve passenger comfort, operational efficiency, and revenue generation for airlines.
A major strength of the company lies in its intellectual property portfolio. Aircraft Reconfig Technologies holds a range of patents, parts manufacturer approvals (PMAs), and supplemental type certificates (STCs), enabling it to deliver certified solutions efficiently and at scale. These assets will now become part of AAR’s broader engineering and MRO ecosystem.
Strengthening FAA Certification Capabilities
One of the most strategically valuable elements of the acquisition is Aircraft Reconfig Technologies’ status as an FAA Part 21 and Part 183 Organization Designation Authorization (ODA) holder. This designation allows the organization to perform certain certification functions on behalf of the FAA, including approving engineering data and issuing airworthiness approvals for specific modifications.
For AAR, gaining in-house ODA authority represents a meaningful shift. Historically, many MRO providers rely on third-party engineering organizations or external certification partners, which can introduce delays, higher costs, and coordination challenges—particularly for complex or time-sensitive projects.
By bringing certification authority inside the organization, AAR can streamline approval processes, reduce dependency on outside firms, and improve schedule predictability for customers. This capability is expected to be especially valuable as airlines pursue increasingly customized cabin configurations to differentiate their brands and optimize aircraft utilization.
Strategic Rationale Behind the Acquisition
AAR’s leadership has emphasized that the acquisition aligns squarely with the company’s long-term growth strategy, which includes targeted mergers and acquisitions designed to expand technical capabilities, increase proprietary offerings, and enhance margins.
John M. Holmes, AAR’s Chairman, President, and Chief Executive Officer, noted that the transaction elevates the company’s engineering and certification services, strengthening its ability to support customers with more integrated and differentiated solutions. The acquisition also supports AAR’s vision of being a full-spectrum aviation services provider capable of addressing increasingly complex fleet modernization needs.
Tom Hoferer, Senior Vice President of Repair & Engineering, highlighted the added design expertise and expanded service opportunities enabled by the deal. With Aircraft Reconfig Technologies’ capabilities, AAR can pursue a broader range of modification programs while maintaining greater control over quality, cost, and delivery timelines.
Enhancing the Repair & Engineering Segment
The Repair & Engineering segment plays a central role in AAR’s business, encompassing airframe maintenance, component repair, engineering services, and aircraft modifications. The addition of Aircraft Reconfig Technologies significantly enhances this segment’s scope and technical depth.
From an operational standpoint, the acquisition allows AAR to offer more comprehensive cabin modification programs that integrate seamlessly with existing maintenance activities. For airlines, this means fewer handoffs between vendors, reduced downtime, and a more cohesive project experience.
The ability to design, engineer, certify, and execute modifications under one organizational umbrella also creates opportunities for innovation. AAR can develop proprietary cabin solutions tailored to specific aircraft types or customer needs, potentially opening new revenue streams and expanding its total addressable market.
Financial Impact and Value Creation
AAR expects the acquisition to be accretive to both margins and earnings once completed. By internalizing engineering and certification functions, the company anticipates improved cost efficiency and enhanced pricing power for complex modification projects.
The $35 million purchase price reflects a disciplined approach to capital deployment, consistent with AAR’s history of acquiring complementary businesses that deliver long-term strategic value. Over time, the integration of Aircraft Reconfig Technologies is expected to support revenue growth, improve operational leverage, and strengthen customer relationships.
In addition, the acquisition reduces execution risk by allowing AAR to manage engineering schedules and certification milestones more directly—an important factor in an industry where delays can be costly for both service providers and airline customers.
Meeting Growing Demand for Aircraft Interior модернизация
The timing of the acquisition is notable. Airlines worldwide are investing heavily in cabin upgrades as they seek to improve passenger experience, introduce new seating products, increase premium cabin density, and adapt aircraft layouts to evolving market demand.
At the same time, supply chain constraints and extended aircraft delivery timelines have made fleet modernization through interior reconfiguration an attractive alternative to acquiring new aircraft. As a result, demand for skilled engineering, design, and certification services has grown significantly.
By expanding its capabilities in this area, AAR is positioning itself to capture a larger share of this demand while offering airlines a more efficient and integrated path to cabin modernization.
Integration and Cultural Alignment
Aircraft Reconfig Technologies’ Greensboro-based workforce will become part of AAR’s broader Repair & Engineering organization. The integration is expected to preserve the engineering firm’s specialized expertise while leveraging AAR’s global scale, customer relationships, and operational infrastructure.
Cultural alignment is expected to play a key role in the success of the integration. Both organizations share a focus on technical excellence, regulatory compliance, and customer service—qualities that are essential in the highly regulated aviation industry.
AAR’s experience in integrating acquired businesses positions it well to retain key talent and ensure continuity for existing customers of Aircraft Reconfig Technologies.
Strengthening Competitive Position in the Aviation Aftermarket
With this acquisition, AAR strengthens its competitive position as one of the leading independent aviation services providers in North America. The ability to offer integrated MRO, engineering, and certification services differentiates AAR from competitors that may lack in-house design authority or rely on external partners.
This differentiation is particularly important as airlines increasingly seek strategic partners capable of managing complex projects across multiple disciplines. By expanding its internal capabilities, AAR enhances its value proposition as a one-stop provider for aircraft maintenance and modification needs.
Looking Ahead
As AAR integrates Aircraft Reconfig Technologies into its operations, the company is well positioned to deliver enhanced engineering and certification services that support its long-term growth objectives. The acquisition reflects AAR’s commitment to investing in capabilities that drive operational efficiency, customer value, and financial performance.
In a competitive and evolving aviation aftermarket, the ability to control design, certification, and execution will become increasingly important. With this strategic move, AAR signals its intention to remain at the forefront of aviation services innovation—offering airlines and operators the expertise and agility they need to modernize fleets and navigate a rapidly changing industry landscape.
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