Aviation services provider AAR has signed a letter of intent (LOI) and is finalising the terms of a five-year deal with Air Canada to provide airframe maintenance services for the airline’s narrow-body Airbus A320 aeroplanes.

Under the agreement, AAR will perform scheduled airframe maintenance and enhancements to the airline’s fleet of 89 A320 aircraft.

"Our team is excited about contributing to Air Canada’s efficient operations and the LOI is an important step forward as we prepare to provide multiple services that will enable the airline to operate its fleet safely while maintaining their high levels of passenger service."

Financial terms of the latest deal have not been disclosed.

Work is set to begin at AAR’s aircraft maintenance facility in Miami, US, and is expected to be moved to the company’s new AAR maintenance, repair and overhaul (MRO) facility in Duluth, Minnesota, in 2013.

AAR has recently announced its plans to open the 188,000ft² aircraft maintenance facility in Duluth, which has acquired the Federal Aviation Administration’s certification and is scheduled to be opened by December this year and become fully operational within 12 months.

AAR provides aircraft support services as part of its ‘1MRO’ approach to aviation and government/defence clients through its two operating segments, Aviation Services and Manufacturing & Systems.

The company provides MRO services from its plants in Indianapolis, Oklahoma and Arkansas, and is in the process of setting up a new MRO facility in Minnesota.

Aviation Services Repair and Engineering vice president Dany Kleiman said: "Our team is excited about contributing to Air Canada’s efficient operations and the LOI is an important step forward as we prepare to provide multiple services that will enable the airline to operate its fleet safely while maintaining their high levels of passenger service."