Tag Archives: 21855

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.

Air Canada: AG Slide Show

Cargojet Airways: AG Slide Show

Advertisements

Cargojet is profitable for the fourth quarter and 2012

Cargojet Inc. (Cargojet Airways) (Hamilton) announced today financial results for the fourth quarter and twelve-month period ended December 31, 2012 .

For the Fourth Quarter Ended December 31, 2012:

  • Total Revenues were $46.4 million , an increase of $3.5 million or 8.2% versus the previous year.
  • Gross Margin was $8.8 million , an increase of $1.7 million or 23.9% versus the previous year
  • EBITDA was $5.4 million , an increase of $2.2 million or 68.8% versus the previous year

For the Twelve Months Ended December 31, 2012:

  • Total Revenues were $168.8 million , an increase of $3.3 million or 2.0% versus the previous year.
  • Gross Margin was $28.3 million , a decrease of $1.5 million or 5.0% versus the previous year
  • EBITDA was $16.9 million , an increase of $1.7 million or 11.2% versus the previous year

“We are very pleased with our financial results, as we continue to operate in a challenging economic environment,” said Ajay Virmani, President and Chief Executive Officer.  “Lower costs and greater efficiencies have combined with stronger core overnight and charter revenues, to provide for a strong finish to the year,” he added.  “We are encouraged by the volume growth in the last half of the year and will continue to focus on new revenue opportunities and continued prudent cost management as we move forward into 2013”.

Copyright Photo: TMK Photography. Cargojet is one of the last cargo operators of the Boeing 727 freighter in North America. Ex-Eastern Boeing 727-225 (F) C-GCJB (msn 21855) taxies at the Hamilton hub.

Cargojet logo

Cargojet Airways: AG Slide Show

Cargojet buys remaining 49% of Prince Edward Air

Cargojet Airways (subsidiary of Cargojet Income Fund) (Hamilton) has agreed to buy the remaining 49 percent of Prince Edward Air (Charlottetown). Previously Cargojet acquired a controlling 51 percent interest in the feeder and charter airline on May 1, 2008. The deal is expected to be closed on March 31, 2009. Cargojet started the Cargojet Regional brand in October 2007 after it acquired Georgian Express on July 27, 2007

Please click on photo for full view and caption.

Please click on photo for full view and caption.

.