Tag Archives: Cargojet Airways

Israel Aerospace Industries to convert 4 Boeing 777-300ERs for Cargojet

Israel Aerospace Industries (IAI) has signed an agreement to carry out passenger-to-freighter (P2F) conversions for Cargojet. The agreement was signed as a result of the growing global demand for cargo aircraft, and includes the conversion of 4 Boeing 777-300ER aircraft and additional options in the future.

IAI has recently signed a number of new agreements for cargo conversions, including converting Boeing 777-300ER aircraft for Emirates and establishing new conversion lines worldwide, including in Abu Dhabi, Ethiopia, and other locations around the world. This agreement with Cargojet strengthens IAI’s strategy to expand its growing cargo conversion lines globally.

Cargojet aircraft photo gallery:

Cargojet announces long-term strategic agreement with DHL

Cargojet Inc. announced today that it has entered into a new long-term strategic agreement with DHL Network Operations (USA) Inc., an affiliate of Deutsche Post DHL Group, for a term of five years with a renewal option for an additional two years, to provide air-transportation services for DHL’s global network.

The Agreement is expected to be meaningfully accretive to Cargojet’s earnings and cash flows over time and help Cargojet further diversify its portfolio of services in line with its previously announced strategic goal of achieving a balanced portfolio.

Under the Agreement, Cargojet will provide ACMI, CMI, charter, and aircraft dry lease services to DHL to support DHL’s international requirements for Europe and North, South, Central and Latin America, as well as Asia. Cargojet utilizes 12 freighters to service DHL’s current requirements.  DHL intends to add 5 additional Boeing 767-300 freighters during the 2022-23 timeframe to fulfill DHL’s anticipated network requirements. Additionally, DHL intends to be Cargojet’s inaugural launch customer for the state-of-the-art Boeing 777F wide body long-range cargo aircraft, which are expected to be deployed in late 2023 or early 2024.

In addition, to align interests and strengthen the long-term strategic relationship, Cargojet will issue to DHL warrants to acquire up to 9.5 percent of Cargojet’s outstanding voting shares (on a non-diluted basis as of the date hereof) at a price of C$158.92 per share (based on the 20-day volume weighted average trading price immediately prior to the date hereof) over a period of seven years, with vesting tied to the delivery by DHL of up to C$2.3 billion1 in business volume during the same term.

Mammoth Freighters announces its launch customer for its 777 freighter: Cargojet Airways

Mammoth Freighters LLC has announced that Cargojet Airways Ltd. is the launch customer for its new 777-200LR freighter with the signing of a sales agreement for two initial 777-200LRMF freighters. Cargojet has additional options for two 300ERMFs and two additional 200LRMFs.

MSN 29747, the prototype (conformity) article for certification, will be the first aircraft delivered to Cargojet. The aircraft is expected to begin the conversion process in mid-2022 with delivery to Cargojet in the second half of 2023.

Cargojet is Canada’s leading provider of time sensitive premium air cargo services to all major cities across North America, providing dedicated ACMI and International Charter services and carries over 25,000,000 pounds of cargo weekly. Cargojet operates its network with its own fleet of thirty-one (31) aircraft.

The addition of Mammoth’s 777-200LRMF freighter completes the Cargojet fleet profile. The Mammoth 777 is tomorrow’s freighter today; a fuel efficient, heavy lifting, high-volume, long-range aircraft operating with clean, efficient, and reliable GE90-110/115B engines.

Cargojet announces a strategic 25% investment in 21Air

21Air (21-air.com) (Dynamic Airways) Boeing 767-241F ER N999YV (msn 23801) MIA (Brian McDonough). Image: 925804.

Cargojet Inc. announced today that it has completed a strategic minority investment in Greensboro, North Carolina headquartered cargo airline 21Air LLC (21Air) with corporate offices in Miami, Florida.

21Air is certified by the Federal Aviation Administration (FAA) as a Part-121 air carrier presently operating a fleet of five (5) Boeing 767 all cargo aircraft.

21Air provides Charter, ACMI, and CMI services to major air cargo consolidators, freight forwarders, couriers, and global integrators, including Cargojet.

As a result of this investment, Cargojet will acquire a 25% interest in 21Air and will continue to collaborate with 21Air on mutually beneficial opportunities in this expanding air cargo market.

Top Copyright Photo: 21Air (21-air.com) (Dynamic Airways) Boeing 767-241F ER N999YV (msn 23801) MIA (Brian McDonough). Image: 925804.

21Air aircraft slide show:

Cargojet to add five Boeing 767-300 and two 777-200 freighters

Cargojet Inc. announced a comprehensive plan for its fleet and route expansion to meet domestic and international growth opportunities starting 2021 and beyond.

Having successfully raised $365 million, earlier this month, through an equity raise to pay off debt and acquire new aircraft, Cargojet is rapidly moving forward to execute on its growth strategy to capture additional e-Commerce volumes and international air-freight opportunities through an expanded fleet.

Cargojet’s fleet expansion will consist of:

  1. Five Boeing 767 freighters, announced earlier, will begin arriving in 2021 with the first freighter arriving in Q3 of this year with one additional freighter arriving every quarter thereafter. Two of these aircraft will be deployed within its domestic network to meet projected e-Commerce growth and add stand-by capacity while the remaining three freighters will be used for international routes to select strategic destinations to capture emerging growth opportunities beginning Q4, 2021.
  2. Two Boeing 777 freighters will be arriving in 2023 with Cargojet having the option to add two more B777s in 2024. The first two of these freighters will be deployed for long haul Asian routes and Emerging South Asian markets strategically integrated with Cargojet’s domestic network and in addition, they will serve and connect seamlessly with select European and South-Central and North American cities.
  3. Cargojet expects all of its fleet to have fully completed its major regular and heavy maintenance by the end of Q3, 2021. This will enable Cargojet to begin international service to select cities in Europe and South-Central and North America starting Q4, 2021 utilizing its existing fleet and add capacity as new freighters come on-line.

Photo: Cargojet President and Chief Executive Officer Ajay K. Virmani.

With this expanded fleet, Cargojet will be better positioned to meet the growth expectations of its customers and build on its strong domestic network covering 15 major cities everyday while selectively adding International destinations that will strategically position Cargojet to service fast growing domestic and cross-border e-Commerce and urgent-cargo opportunities. In addition, Cargojet will continue to explore and focus on additional growth opportunities in the vast US market.

With this expanded fleet, Cargojet will be better positioned to meet the growth expectations of its customers and build on its strong domestic network covering 15 major cities everyday while selectively adding International destinations that will strategically position Cargojet to service fast growing domestic and cross-border e-Commerce and urgent-cargo opportunities. In addition, Cargojet will continue to explore and focus on additional growth opportunities in the vast US market.

Cargojet Airways aircraft photo gallery:

Cargojet Airways aircraft slide show:

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:

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: