Category Archives: Cargojet Airways

Cargojet announces a strategic agreement with Amazon

Cargojet Airways Boeing 767-39H ER WL C-FGSJ (msn 26256) LAX (Ron Monroe). Image: 947384.

Cargojet Inc. has announced today that it has entered into a new strategic agreement with Amazon.com NV Investment Holdings LLC, an affiliate of Amazon.com.ca, Inc.

Cargojet is a key air cargo carrier for Amazon’s middle mile transportation in Canada. This agreement is in conjunction with Amazon’s and Cargojet’s existing commercial agreement for overnight air cargo services and charters and to incentivize growth in Amazon’s utilization of those services to support fast delivery for Amazon customers in Canada. Under the new strategic agreement, Cargojet will issue warrants to Amazon to purchase variable voting shares that will vest based on the achievement of commercial milestones related to Amazon’s business with Cargojet. Cargojet expects the agreement to generate additional revenue growth and be meaningfully accretive to Cargojet’s earnings and cash flows over time.

Amazon utilizes Cargojet’s overnight air network and charter aircraft services to move packages from Amazon facilities to other Amazon or last mile carrier locations before final delivery to customers. Speed and reliability in this component of the logistics network are critical for enabling consistent delivery performance for Amazon customers across Canada.

Growth in e-commerce and recent industry announcements for even faster deliveries as well as 7 days-a-week deliveries will drive Cargojet to further strengthen its premium domestic network.  Cargojet plans, over time, to add more non-stop flights allowing later departures and earlier arrivals to the 15 major cities that Cargojet already serves and to add new cities on its overnight network. These service and frequency enhancements will be available to all Cargojet customers, and will expand Cargojet’s reach to approximately 95% of the Canadian population. This optimized network will further improve fleet utilisation, create additional opportunities, and continue to help Cargojet enhance its customer-neutral, cost effective network for all its customers.

As part of the agreement, Cargojet will issue the warrants to Amazon in two tranches. The first tranche of warrants allows Amazon to acquire up to 9.9 percent of Cargojet’s variable voting shares at an exercise price of $91.78 per share, comprising the 30-day volume weighted average trading price (“VWAP”) immediately prior to the date of the agreement.  The first tranche of warrants will vest over a period of six and a half years, with vesting tied to the delivery by Amazon of up to C$400 million in business volumes during the same term.

Amazon will also receive additional warrants to acquire up to an additional 5 percent of Cargojet’s variable voting shares with vesting tied to the delivery by Amazon of up to an additional C$200 million in business volumes after the first tranche of warrants is fully vested. The vesting period for the second tranche of warrants will continue for an additional year, making the aggregate term of all the warrants equal to seven and a half years from the date of the agreement. The exercise price of the second tranche of warrants will be set two years after the date of the agreement using the 30 day VWAP immediately prior to the second anniversary of the agreement (or, if earlier, the date on which the first tranche of warrants is vested in full).

Top Copyright Photo: Cargojet Airways Boeing 767-39H ER WL C-FGSJ (msn 26256) LAX (Ron Monroe). Image: 947384.

Cargojet aircraft slide show:

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Cargojet announces a new partnership with artist Drake

Cargojet Inc. has announced their new partnership with multi award-winning artist, Drake.

Drake has been a longstanding supporter of Cargojet, being first introduced to the brand during the celebrations of its first Boeing 767-300F launch. The Canadian born company provides unparalleled transportation and logistics in air cargo services.

“Supporting home grown businesses has always been a top priority of mine, so when an opportunity came up to get involved with a great Canadian company I was honored to do so.” – Drake.

“We are very excited to partner with Drake as our ambassador and assisting him with his logistical needs and requirements,” said Ajay Virmani, President and Chief Executive Officer. “We have had a lengthy relationship with Drake and this partnership has grown organically between both parties. Cargojet and Drake are both great Canadian successes, we are thrilled to be partnering together,” he concluded.

Video:

Cargojet retires the last Boeing 727, the end of an era

Type Retired: December 28, 2018 (flight W8 582 Vancouver - Hamilton with C-GCJZ)

Cargojet Airways ended an era at the end of 2018.

 

According to the company, on December 28, 2018 Cargojet operated the last revenue flight with its last Boeing 727.

The pictured Boeing 727-225 C-GCJZ (msn 21854) (top) operated cargo flight W8 582 from Vancouver to the Hamilton base on December 28.

The airliner flew 56,577.7 hours in its long career with 41,476 cycles.

The airframe was originally delivered to Eastern Airlines as N8885Z on October 17, 1979. Msn 21854 would later serve with Orion Air, Continental Airlines (N8885Z), Miami Air International (N889MA) and Capital Cargo Airlines. It was delivered to Cargojet on May 16, 2003.

That is over 39 years of faithful service for the airframe.

Top Copyright Photo: Cargojet Airways Boeing 727-225 (F) C-GCJZ (msn 21854) YHM (TMK Photography). Image: 945231.

Cargojet aircraft slide show:

Bottom Copyright Photo: Cargojet Airways Boeing 727-225 (F) C-GCJB (msn 21855) YVR (Ton Jochems). Image: 913314.

Airline Color Scheme - Introduced 2002

 

Cargojet announces strong first quarter results

Cargojet Airways Boeing 767-223 (F) C-FMCJ (msn 22316) CGN (Rainer Bexten). Image: 941802.

Cargojet Inc. announced today financial results for the quarter ended March 31, 2018.

For the First Quarter Ended March 31, 2018:

  • Total Revenues were $99.2 million, an increase of $12.1 million or 13.9% versus the previous year
  • Gross Margin was $23.1 million, an increase of $2.2 million or 10.5% versus the previous year
  • Adjusted EBITDA was $27.5 million, an increase of $5.2 million or 23.3% versus the previous year
  • Adjusted EBITDAR was $29.8 million, an increase of $3.4 million or 12.9% versus the previous year

“Cargojet is very pleased with the continued revenue growth and margin improvements achieved during the quarter” said Ajay Virmani, President and Chief Executive Officer.  “We continue to carefully manage our operating costs and focus on greater utilization of our fleet.” he added.

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services and carries approximately 1,300,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of 19 all-cargo aircraft. The Corporation operates over 12,000 flight legs yearly and has a team of over 900 dedicated professionals.

Copyright Photo: Cargojet Airways Boeing 767-223 (F) C-FMCJ (msn 22316) CGN (Rainer Bexten). Image: 941802.

Cargojet aircraft slide show:

Cargojet announces strong fourth quarter and 2017 results

Cargojet Airways Boeing 757-23APF C-FLAJ (msn 24567) YYC (Chris Sands). Image: 932427.

Cargojet Inc. announced its financial results for the fourth quarter and year ended December 31, 2017.

For the Fourth Quarter Ended December 31, 2017:

  • Total Revenues were $118.2 million, an increase of $24.1 million or 25.6% versus the previous year
  • Gross Margin was $37.4 million, an increase of $9.9 million or 36.0% versus the previous year
  • Adjusted EBITDA was $37.3 million, an increase of $9.4 million or 33.7% versus the previous year
  • Adjusted EBITDAR was $40.1 million, an increase of $7.8 million or 24.1% versus the previous year

For the Year Ended December 31, 2017:

  • Total Revenues were $382.9 million, an increase of $51.9 million or 15.7% over the previous year
  • Gross Margin was $106.3 million, an increase of $20.5 million or 23.9% versus the previous year
  • Adjusted EBITDA was $109.5 million, an increase of $16.4 million or 17.6% versus the previous year
  • Adjusted EBITDAR was $122.9 million, an increase of $9.6 million or 8.5% versus the previous year

“We are very pleased with the strong financial results achieved in the fourth quarter.” said Ajay Virmani, President and Chief Executive Officer. “We continue to execute our plan to optimize our overnight network and to improve aircraft utilization while meeting the growing demands of e-commerce activity” he added. “These results are a testament to the tremendous efforts of the entire Cargojet team as we continue to focus on prudent cost controls and revenue growth while continuing to provide a value added service to our customers.”

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services and carries over 1,300,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft.

Copyright Photo: Cargojet Airways Boeing 757-23APF C-FLAJ (msn 24567) YYC (Chris Sands). Image: 932427.

Cargojet aircraft slide show:

Cargojet to start Hamilton – Miami – Bogota cargo flights

Cargojet Airways Boeing 767-328 ER (F) C-GVIJ (msn 27212) SVO (OSDU). Image: 931321.

Cargojet Airways will add a new cargo route linking its Hamilton, ON cargo hub with Bogota via Miami. The new route will add to its existing network (see below).

The new service will commence on March 16 and will be operated with Boeing 767-300F freighters and will operate two days a week.

Top Copyright Photo (all others by Cargojet): Cargojet Airways Boeing 767-328 ER (F) C-GVIJ (msn 27212) SVO (OSDU). Image: 931321.

Cargojet aircraft slide show:

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Cargojet announces scheduled international freighter service

Cargojet Airways Boeing 767-328 ER (F) C-GVIJ (msn 27212) SVO (OSDU). Image: 931321.

Cargojet Airways has announced their scheduled freighter service between Canada and South America and a second frequency between Canada and Europe starting on February 2, 2018.

Cargojet will begin operating its own scheduled Boeing 767-300F freighter aircraft twice per week on the following schedules:

Hamilton, ON to/from Bogota, Colombia and Lima, Peru via Altanta, Georgia and will operate Fridays and Sundays.

Hamilton, ON to/from Cologne, Germany will operate on Saturdays with continued connectivity through the Cargojet network.

Copyright Photo: Cargojet Airways Boeing 767-328 ER (F) C-GVIJ (msn 27212) SVO (OSDU). Image: 931321.

Cargojet aircraft slide show: