AAR Corp is preparing to wind down its heavy maintenance operations at its Indianapolis facility over the next 18 months, aiming to reallocate work to other locations within its network. The company announced in late December 2025 that the Indianapolis site, which had become its highest-cost location due to lease agreements and labor challenges, will be phased out as part of broader efficiency improvements. CEO John Holmes stated that the closure would result in increased capacity at remaining facilities, including those recently acquired from HAECO Group, and would help lower fixed costs while providing more predictable labor supply.
Following the acquisition of HAECO Americas in November 2025, AAR now operates six heavy maintenance facilities, with expansion plans for Oklahoma City and Miami. The Indianapolis closure is intended to help the company realize synergies between its heavy maintenance and parts businesses, leveraging the increased aircraft throughput—more than 1,000 aircraft annually—to generate component repair work. Holmes emphasized that this strategic shift would bolster margins and capacity, contributing to approximately 40% additional network capacity once the Indianapolis site is closed.
The deal with HAECO included $850 million in new contracts, helping secure the company's maintenance slot availability through the end of the decade. AAR expects that the restructuring will support the continued growth of its aircraft component and repair services, positioning the company for increased efficiency and competitiveness in the aerospace maintenance market. The company also highlighted that the consolidation aligns with its long-term strategy to optimize operations and expand its service offerings.
