(MENAFN- Baystreet) AAR CORP. (NYSE: AIR) shares hesitated Thursday. The company, a leading provider of aviation services to commercial and government operators, MROs, and OEMs, and Air France Industries KLM Engineering & Maintenance (AFI KLM E&M), a multi-product airline MRO, announced today they signed an agreement to form a joint venture in the Asia-Pacific region to support nacelles of next generation aircraft. This is the second joint venture to be formed by the companies. The first was formed in 2021 by Triumph Product Support, which was acquired by AAR earlier this year, and AFI KLM E&M to serve the Americas region.

Located in AAR's Chonburi, Thailand, facility, the new joint venture will perform next generation nacelle maintenance, repair, and overhaul services, including on-wing / on-site inspections, and ensure extensive part availability for their valued customers. Together, AAR and AFI KLM E&M are dedicated to meeting the evolving needs of the aviation industry and maintaining their highly regarded reputations for excellence in MRO services. The combination of an independent MRO with a global airline and MRO will provide unparalleled service and support for operators. The formation of the joint venture is subject to regulatory approval and serves as an addition to the worldwide network for nacelle services.

"This partnership with AAR strengthens both our positions in the Asia-Pacific region. Our expertise, local proximity, and sustainable supply chain will ensure superior MRO services with enhanced efficiency, reliability, and part availability," said Benjamin Moreau, AFI KLM E&M's Senior Vice President of Strategy & Business Development.

AIR shares fell 46 cents to $66.84 soon after Thursday's opening.

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