Tag Archives: Cargojet Airways

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:

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:

World Network:

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:

Air Canada and Cargojet will not extend their agreement

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

Air Canada Cargo has issued this statement:

The agreement between Air Canada and Cargojet will expire at the end of 2017 and will not be extended. As such, dedicated freighter service will be terminated to and from Mexico, Dallas-Fort Worth, Atlanta, Bogota, Lima and Frankfurt.

Air Canada Cargo will continue to offer our complete range of cargo services on widebody passenger flights in most of those markets. Air Canada will be adding daily 767 passenger flights between Canada and Mexico, and three additional weekly frequencies between Canada and Lima in 2018.

We will continue to offer our extensive trucking network facilitating connections to widebody flights out of US cities like Miami, Fort Lauderdale/Hollywood, Orlando, Los Angeles, San Francisco and Newark or connect to widebody flights out of Vancouver, Calgary, Toronto and Montreal.

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

Cargojet: