AAR to maintain Air Canada A320s

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Illinois-based maintenance, repair and overhaul company AAR has signed a letter of intent with Air Canada to take on airframe maintenance work for the carrier's Airbus A320 aircraft.

The five-year agreement would cover maintenance services for about 89 Airbus A320 aircraft through 2017, and AAR says the two companies are still working out the specifics of the deal.

Montreal-based MRO Aveos Fleet Performance performed much of Air Canada's maintenance work until it shuttered its doors in March 2012 after going bankrupt. The company split up its airframe business for C$10.8 million ($10.5 million) to six different companies, including AAR.

AAR says it would start performing the maintenance work at its Miami facility and then move it to its new Duluth, Minnesota hangar within the next year. The company announced just this week that the 188,000ft² (17,465m²) facility will be operational by the end of the year with a launch customer.