The Cargojet network operates across North America, carrying up to 400 tonnes of time-sensitive cargo every night using a fleet of 13 B727, B757 and B767 freighters.

SL Express already held the remaining 45 percent of the business, which it will operate under the Skylink Express name.

"The sale of our regional air cargo business was a difficult but necessary decision that was made in the best interests of our customers, our employees and our unitholders," said Ajay Virmani, president and CEO of Cargojet.

"Sustaining a profitable regional air cargo business has been especially challenging, as recent economic conditions have resulted in a decline in customer demand and lower yields. The elimination of the drag on our financial and administrative resources will allow Cargojet to continue to focus upon and to seek further profitable growth opportunities in its national and international air cargo programs."

Dan Rocheleau, president of SkyLink Express, said: "This deal with PEAL will make SkyLink Express the largest regional air cargo operator in Canada. We have a long history in this business and highly qualified management and operations teams, so we are well-positioned to take SkyLink Express through this growth phase and on to greater heights."

Specializing in time-sensitive and cost effective aircraft charter services, SkyLink Express will now operate 21 aircraft daily to locations throughout Canada and the US.

Surjit Babra, CEO of SkyLink Express and chairman of SkyLink Group, said: "Fifteen years ago, SkyLink identified the potential of this niche market, using feeder aircraft and leveraging SkyLink's cost-effective hub-and-spoke structure. This investment is further evidence that we are committed to the Canadian regional air cargo market and continue to believe there are outstanding opportunities for our company."