AAR Corp announced a new distribution agreement with Otto Instrument Service to sell and support the LASEREF IV inertial reference system, a key avionics unit used on a range of business aircraft.
The deal expands AAR’s Parts Supply segment into the business‑aviation aftermarket, adding a high‑value product that is installed on a variety of business jets. The partnership combines Otto’s technical expertise with AAR’s global supply‑chain reach, advanced distribution infrastructure, and customer‑support capabilities.
The agreement aligns with AAR’s strategy to grow higher‑margin, high‑volume parts distribution. In Q2 FY2026, the Parts Supply business grew 29% in sales, with new parts distribution achieving 32% organic sales growth, underscoring the segment’s momentum.
Management highlighted the strategic fit. Frank Landrio, AAR’s Senior Vice President of Distribution, said the partnership “further strengthens AAR’s position as a premier global distributor and expands access into the business‑aviation market.” Otto’s Vice President of Sales and Contracts, Chuck Farley, noted that AAR’s global footprint and proven performance in avionics logistics make them an ideal distributor.
The agreement is expected to create cross‑selling opportunities with AAR’s existing commercial and government customers, reinforcing the company’s broader aftermarket strategy. The partnership also positions AAR to capture a share of the growing business‑aviation market, which is projected to expand as operators seek advanced navigation and replacement systems.
AAR’s recent Q2 FY2026 results—sales of $795 million, up 16% year‑over‑year, and adjusted diluted EPS of $1.18, up 31%—provide a strong financial backdrop for the new deal. The company also appointed Dylan Wolin as Chief Financial Officer on February 23, 2026, signaling continuity in its financial leadership.
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