Air Canada Cargo and Cargojet have formed an agreement to collaborate on “strategic opportunities” for cargo and airline operations, both within Canada and internationally.
The carriers say the new agreement will provide opportunities to raise revenues and reduce operating costs through collaboration on areas such as sales and marketing, possible interline agreements and bettering network connectivity.
"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," says Ajay Virmani, Cargojet’s president and chief executive.
Air Canada’s cargo revenues increased 2% in the third quarter to Canadian dollar C$120 million ($115 million) compared to the same period in 2012. Cargo traffic growth grew 2.9% with a 0.6% decline in yields.
Cargojet recorded C$43.4 million in revenues in the third quarter, up 3.8% year-over-year.
Last month Air Canada added capacity to its cargo service to Brazil, Chile and Argentina with Boeing 777 aircraft and boosted flights to Europe and Asia in May.
"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."
Cargojet operates a fleet of eleven Boeing 727-200 freighters, plus one Boeing 757-200 and two Boeing 767-200 converted freighters, regulatory filings show.