Category Archives: Cargojet Airways

Cargojet starts operating for Air Canada Cargo

Cargojet starts operating for Air Canada Cargo

Air Canada issued this statement:

Air Canada Cargo and Cargojet Airways Ltd., a subsidiary of Cargojet Inc. commenced cargo service on June 10, 2016 with the first freighter flight to Bogota, Colombia and Lima, Peru , operated with a Cargojet Boeing 767-300F aircraft.

The new Air Canada Cargo flights will provide 52 tons of net cargo capacity and will also include flights to Mexico City , starting this coming weekend.

Under the arrangement, Air Canada Cargo plans to introduce dedicated freighter service to Europe from Toronto in the second half of 2016.

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

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Cargojet and UPS Canada enter into a long-term cargo relationship

Cargojet Airways (Hamilton) has announced the company has entered into a new Air Cargo Service Agreement with United Parcel Service Canada Ltd. (UPS). This Agreement replaces the agreement originally entered into in 2003 to provide domestic overnight air cargo services throughout Canada.

The initial term of the agreement is for a ten-year period with two, three-year renewal options.

Cargojet logo

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services and carries over 1,000,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft consisting of 5 Boeing 767-300 ER, 5 Boeing 767-200 ER, 5 Boeing 757-200 and 9 Boeing 727-200F aircraft.

Copyright Photo: Chris Sands/AirlinersGallery.com. Cargojet is one of the last operators of the Boeing 727 in Canada. Boeing 727-223 (F) C-GCJY (msn 22460) departs from Calgary.

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Cargojet reports an expanded profit for its second quarter

Cargojet Inc. (Cargojet Airways) (Hamilton, ON) has announced its financial results for the second quarter ending on June 30, 2015.

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For the Second Quarter Ended June 30, 2015 :

Total Revenues were $75.2 million (all amounts are in Canadian dollars), an increase of $30.9 million or 69.6% versus the previous year

Gross Margin was $7.3 million, an increase of $2.1 million or 39.3% versus the previous year

Adjusted EBITDA before one-time costs was $10.9 million, an increase of $6.5 million or 147.7% versus the previous year. Adjusted EBITDA net of one-time costs was $6.6 million .

Adjusted EBITDAR before one-time costs was $20.0 million , an increase of 115.1% versus the previous year. Adjusted EBITDAR net of one-time costs was $15.7 million .

“Cargojet has successfully completed the integration of its new major customer in 2015, which has contributed to revenue growth in the Quarter,” said Ajay Virmani , President and Chief Executive Officer.

“Overall customer demand for Cargojet’s primary overnight network services and its air cargo charter services were softer than expected in the Quarter and we continue to match capacity to actual demand, in order to keep operating costs in line”, he added.

“One-time costs related to the expansion of our core overnight network that started in March 2015 , for a major customer were in line with our planned expenditures,” he added.

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services and carries over 1,000,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft consisting of 6 Boeing 767-300 ER, 3 Boeing 767-200 ER, 5 Boeing 757-200 and 9 Boeing 727-200F aircraft.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Cargojet has been adding wide-body freighters including the pictured former American Airlines Boeing 767-223 (F) C-GCJO (msn 22315) pictured at Winnipeg.

Cargojet Airways aircraft slide show: AG Airline Slide Show

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Cargojet and First Air expand their commercial agreement

Cargojet Inc. (Cargojet Airways) (Hamilton), Canada’s domestic premium overnight air cargo network operator, and First Air (Ottawa), the Airline of the North, announced today that they have expanded their commercial co-operation agreement effective July 1, 2015 and extended their Transportation Agreement to June 30, 2025.

Cargojet logo

First Air logo 2

According to both carriers:

This agreement further strengthens the strategic alliance between the two companies, and will allow for seamless air cargo transportation between the 14 major Canadian cities served on Cargojet’s overnight air cargo network as well as the 32 communities served by First Air in Canada’s North.

Above Copyright Photo: Chris Sands/AirlinersGallery.com. Cargojet Airways Boeing 767-35E ER (F) C-GUAJ (msn 26063) departs from Calgary.

Cargojet Airways aircraft slide show: AG Airline Slide Show

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Below Copyright Photo: Tony Storck/AirlinersGallery.com. First Air Boeing 737-406 C-FFNC (msn 27232) (Native Hunter) taxies at Yellowknife.

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Cargojet paints its first aircraft for the Purolator contract

Cargojet Airways (Hamilton) has painted the first aircraft for the new Purolator contract.

Cargojet is taking over all Canada Post/Purolator flying after beating out Kelowna Flightcraft for the new contract.

On February 19, 2014 Cargojet announced they have been awarded the Domestic Air Cargo Network Services contract and have signed a Master Services Agreement with the Canada Post Group of Companies (CPGOC) for an initial seven-year (7) term with three (3) thirty-six month (36) renewal options. Projected revenues are estimated to be approximately one billion dollars during the initial seven-year agreement based on projected volumes.

Cargojet will provide comprehensive Canada-wide air cargo services for the Group of Companies, including Purolator’s national air cargo network. Cargojet’s domestic overnight network will be expanded and enhanced significantly to handle the additional volumes and provide a virtual dedicated Air Cargo Network to the Canada Post Group of Companies.

Purolator is Canada’s leading integrated freight and parcel solutions provider.

Copyright Photo: Chris Sands/AirlinersGallery.com. Former Star Air Boeing 767-39H ER C-FGSJ (msn 26256, ex OY-SRS) departs majestically from Calgary International Airport.

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Cargojet Airways leases two Boeing 767-200 ERF freighters from Air Transport Services Group

Air Transport Services Group, Inc. (Wilmington, Ohio), the sister company of ABX Air and ATI, has announced it has signed a new agreement with Cargojet Airways (Hamilton, Ontario), Canada’s cargo airline, to lease two Boeing 767-200 ER freighters.

Cargojet currently dry-leases two Boeing 767-200 freighters from ATSG’s subsidiary Cargo Aircraft Management Inc. (CAM) under long-term agreements. Cargojet has signed agreements to dry-lease an additional two Boeing 767-200 freighters from CAM, for up to three years. The first aircraft is expected to be delivered by the end of the second quarter, with the second aircraft delivering early in the third quarter.

Cargojet is currently in the process of a fleet renewal plan. Leasing these two additional 767-200 freighters is part of the company’s current growth strategy. The cargo airline is gearing up its fleet for the upcoming Canada Post/Purolator contract. The airline is also phasing out its Boeing 727 freighter fleet, one of the last operators of the trijet in North America.

Copyright Photo: Reinhard Zinabold/AirlinersGallery.com. Formerly operated by American Airlines, Boeing 767-223 (F) C-FMCJ (msn 22316) is pictured landing at the Hamilton base.

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Air Canada and Cargojet sign a LOI to explore strategic opportunities

Air Canada (Montreal) and Cargojet Airways (Hamilton) today announced they have signed a Letter of Intent (LOI) to explore strategic opportunities in both cargo and airline operations within Canada and in international markets.

The carriers intend to pursue strategic opportunities and increase cooperation in various areas such as global sales and marketing, expanded interline opportunities and enhanced connectivity that would increase revenues and reduce operating costs. Both airlines would work towards providing optimized services to the shipping community on their respective networks.

“We are looking forward to working with Air Canada towards improving the depth and reach of both companies’ air cargo services, both domestically and internationally, among other strategic opportunities,” said Ajay K. Virmani, President and Chief Executive Officer of Cargojet.

“We are very pleased to be in discussions with Cargojet to explore opportunities for revenue growth and synergies that will be mutually beneficial for both our companies and customers,” said Lise-Marie Turpin, Air Canada Cargo Vice President.  “Developing further our relationship with Cargojet is an exciting opportunity.”

The implementation of new strategic initiatives would be subject to Air Canada and Cargojet making any necessary filings, obtaining regulatory approvals and finalizing documentation.

Air Canada Cargo provides direct cargo service world wide offering the shipping community business solutions that meet their needs efficiently and cost effectively.  Air Canada is Canada’s largest domestic and international airline serving more than 175 destinations on five continents.  Canada’s flag carrier is among the world’s 10 largest commercial airlines and in 2012 served close to 35 million passengers.  Air Canada provides scheduled passenger service directly to 60 Canadian cities, 49 destinations in the United States and 67 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America.

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services that constitutes over 50 per cent of domestic overnight air cargo capacity. Cargojet operates its network across North America each business night, utilizing a fleet of thirteen all-cargo aircraft.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Cargojet is still an operator of the Boeing 727 but it has also added a Boeing 757-200 and two 767-200 freighters for its longer-range cargo routes. Former Eastern Airlines Boeing 727-225 C-GCJB (msn 21855) waits at Vancouver for the next assignment.

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