Airport Renews Maintenance Center LeasePosted: Updated:
The Indianapolis Airport Authority has reached an agreement with AAR Aircraft Services to renew the company's lease at the Indianapolis Maintenance Center. The new 10-year lease covers around 970,000 square feet at the center.
December 19, 2014
INDIANAPOLIS, Ind. – The Indianapolis Airport Authority (IAA) has reached an agreement with AAR Aircraft Services, Inc. (AAR) to renew the company’s lease at the Indianapolis Maintenance Center (IMC), where the global aerospace company maintains one of its principal airframe maintenance, repair, and overhaul operations. AAR, which is among the IAA’s largest tenants, has been operating at the IMC since 2004.
The new 10-year lease includes options totaling an additional 10 years and covers approximately 970,000 square feet of the IMC, including ten hangar bays and machine and composite shops and office space. AAR also leases a portion of warehouse space at the IMC under a separate agreement.
“This renewal is important not just for the IAA and AAR but for our region and the many stakeholders who benefit from the contributions AAR’s activities make to IND’s substantial economic impact in Central Indiana,” said Michael Wells, president of the Indianapolis Airport Authority board.
“It’s only fitting that our airport, known for creating a world-class passenger experience, will continue to be the site of a world-class maintenance facility,” said Mario Rodriguez, executive director for the IAA. “Staffed by a highly trained local workforce, AAR’s operations directly support IND’s role as a top-flight facility for both passengers and airlines and the airport’s $4.5 billion annual economic impact. Our continuing partnership with AAR is great news for the city of Indianapolis and the state of Indiana.”
The IMC was occupied by United Airlines when it opened in 1994. The 300-acre site includes a 248-acre structure that houses 12 hangars as well as office, storage, and workshop space. The IAA took possession of the IMC in 2003 after United declared bankruptcy and rejected its maintenance center lease with the Airport Authority.
The lease requires IAA to pay a base rent of $2.00 per square foot and an additional $6.20 per square foot for operating cost reimbursement. AAR will also share profits from its hangar operations above a certain level.
The new lease includes an economic incentive in the form of rental credits to assist AAR in the demolition of the interior of certain hangar bays. This will increase AAR’s production footprint, enabling AAR to house five to ten additional aircraft within its leased facilities while improving the overall efficiency of the IMC.
AAR is the leading provider of aftermarket support to the worldwide aviation/aerospace industry. Products and services include the maintenance, repair and overhaul of aircraft and aircraft parts, customized inventory management and logistics programs, aircraft and engine sales and leasing and the manufacture of spare parts and systems. Headquartered in Wood Dale, Illinois, AAR serves commercial and government aircraft fleet operators and independent service customers throughout the world. Further information can be found at www.aarcorp.com.
About the Indianapolis Airport Authority
The Indianapolis Airport Authority owns and operates Indiana’s largest airport system. In addition to the Indianapolis International Airport, its facilities include the Downtown Heliport, Eagle Creek Airpark, Hendricks County Airport, Indianapolis Regional Airport, and Metropolitan Airport. IND has received numerous prestigious awards recognizing it as a leader within its class, including best airport in North America in 2010, 2012, and 2013 in Airports Council International’s annual Airport Service Quality awards. IND is the first airport in the U.S. to win LEED® certification for an entire terminal campus, and the airport has won additional recognition for excellent customer service, concessions programs, and art and architecture.
IND generates an annual economic impact in Central Indiana of more than $4.5 billion, without relying on state or local taxes to fund its operations. About 10,000 people work at the airport each day. IND serves more than 7 million business and leisure travelers each year, and averages 135 daily flights to 38 nonstop destinations. Home of the world's second-largest FedEx Express operation and the nation’s eighth-largest cargo facility, IND is committed to becoming the airport system of choice for both passenger and cargo service. For more information, visit IND’s Facebook page at Indianapolis International Airport and Twitter page at @INDairport.
Source: Indianapolis Airport Authority