AAR

Intangible assets: AAR holds multiple FAA and international repair station certifications, operates one of North America’s largest independent airframe MRO networks, and maintains exclusive or preferred OEM distribution relationships that are difficult to replicate.

Recent Woodward distribution and component repair expansions strengthen this position. Score 70. Switching costs: Airlines and government agencies embed AAR in maintenance programs, inventory management, and software workflows (Trax, Aerostrat), creating operational reliance and data integration that raise migration barriers over multi-year cycles.

Score 75. Network effects: Limited classic network effects, though software and data tie-ins can modestly compound value as installed base grows. Score 30. Cost advantages: Scale in procurement, distribution, and component MRO plus global footprint confer some cost leverage, but advantages are not unassailable given OEM influence.

Score 58. Efficient scale: Heavy airframe MRO capacity is scarce in North America and difficult to stand up, which benefits incumbents with hangars, labor, certifications, and safety track records. The HAECO Americas acquisition adds lines where demand is strong. Score 74.