Aviation and expeditionary services provider AAR has reportedly closed its maintenance, repair and overhaul (MRO) facility in Duluth, Minnesota, US.
The company furloughed the majority of its employees since last month after a drop in airline travel impacted its business due to the Covid-19 pandemic.
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The Star Tribune has reported that the aerospace company notified its employees about permanent job cuts on 20 May. It also informed them of plans to shut down its facility.
The decision is expected to affect 275 jobs by the end of July.
AAR’s email to the state and city was quoted by the local media as saying; “Due to the unforeseen business circumstances associated with the Covid-19 pandemic and its devastating effects on the commercial airline industry, our primary customer has informed us that we will receive no new maintenance projects at this site for the foreseeable future.
“We have been forced to close our Duluth location.”
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By GlobalDataHeadquartered in the Chicago area, AAR supports commercial and government customers through two operating segments, namely Aviation Services and Expeditionary Services.
The company has four other locations in the US and two in Canada.
AAR spokeswoman Daniela Pietsch was quoted by the Star Tribune as saying: “The decision to close our Duluth facility and reduce our workforce was difficult given the skills and commitment of the employees at the site.
“The Duluth facility’s equipment will be transferred to other AAR maintenance, repair and overhaul stations.”
In February, AAR Aircraft Services Trois-Rivières ULC and flag carrier Air Canada signed a letter of intent (LoI) for airframe maintenance Centre of Excellence (CoE).
