Cargo contract nets AAR $300 million

announced this week at the

that it has been selected to provide cargo handling systems for the new

A400M Military Transport Aircraft. Michigan-based AAR Cargo Systems is teaming with Pfalz Flugzeugwerke (PFW), of

, on the program.

Under the arrangement, AAR will develop and manufacture the floor-based cargo loading system and aerial delivery system and provide technical and systems integration expertise.

As the prime contractor, PFW will develop and manufacture the structural floor and the drainage system, co-ordinate logistics and delivery and provide integrated logistic services.

Initial sales of the cargo systems, together with estimated revenue from spare parts sales and service, are scheduled to begin in AAR’s fiscal year 2007. AAR's portion of revenue generated from the program is expected to exceed $300 million through fiscal year 2015, based on sales projections for the A400M.

Airbus Military currently has orders for 188 A400Ms from eight governments, including

and

, with deliveries scheduled to begin in 2009.