Air Canada Cargo and Cargojet seek cooperation deal
Air Canada and Cargojet announced Wednesday 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, Cargojet’s president and CEO.
"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 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 more than 50 per cent of domestic overnight air cargo capacity. Cargojet operates its network across North America each business night, utilizing a fleet of 13 all-cargo aircraft.