AAR defends work on Boeing jets; FAA to investigate parts
Wood Dale-based AAR Corp. Tuesday defended its work on Boeing Co. jets, after a safety alert was issued by the Federal Aviation Administration.
The FAA said in the March 25 alert that hundreds of Boeing aircraft were outfitted with "unapproved'' landing-gear parts under a maintenance contract with AAR.
"We have received no complaints from any of our customers," AAR spokesman Chris Mason said.
The parts -- MLG truck beams -- didn't comply with maintenance manuals and a 2001 safety order because they used enamel paint that may block a drain hole and hide rust, according to the alert.
The alert covers more than 300 parts approved by AAR for use on 767s, 757s, 747s and 707s from Jan. 1, 2001, to Nov. 26, 2007, the agency said.
No accidents or problems have been reported, Mason said.
FAA spokeswoman Alison Duquette said she wasn't aware of how the problem came to light or whether the same parts have been used on other non-Boeing planes.
The news forced AAR's shares down $1.27, or about 5 percent, to close at $26.
"We see today's news and market reaction as a buying opportunity" on AAR, JB Groh, an analyst with D.A. Davidson & Co. in Lake Oswego, Ore., wrote in a note. "We do not believe that the unapproved parts notice represents any sort of contingent liability for AAR."
AAR said painting the internal bore of landing gear beams has been an industry standard practice for years.
The paint is applied as an additional layer of protection against the environment, thereby inhibiting corrosion from forming. While, the requirement to paint the internal bore, previously contained in the Boeing manual, has been dropped as a requirement, painting of the internal bore continued to be a standard industry practice, AAR said.
Chicago-based Boeing was still "gathering information," spokeswoman Liz Verdier said.
Boeing has advised AAR and the FAA that painting as an alternate finish application should be considered equivalent to the maintenance manual requirement provided the other overhaul instructions are followed, AAR said.
The FAA in its alert encouraged aircraft owners to inspect their planes and stop installing the truck beams.
The alert came a week after the FAA ordered inspections of wiring on Boeing MD-80s, forcing AMR Corp.'s American Airlines and Delta Air Lines Inc. to cancel 400 flights.