Cargojet expects C$1b from new Canada Post contract

Washington DC
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Canadian air freight operator Cargojet has struck a seven-year domestic network contract with the Canada Post Group of Companies that will provide the carrier with an estimated Canadian dollar (C$) $1 billion ($902 billion) in revenues over the course of the contract.

Mississauga, Ontario-based Cargojet will expand its overnight network to prepare for a surge in volumes under the contract.

“Cargojet operates an extensive overnight air cargo model, which will provide the most cost-effective and scalable solution to the Canada Post Group of Companies,” says Ajay Virmani, Cargojet’s president and chief executive.

Cargojet added a second Boeing 757 freighter to its fleet in January through a deal with lessor AWAS. The carrier also operates 10 Boeing 727 freighters and two Boeing 767 freighters, Flightglobal’s Ascend Online database shows.

In November, Cargojet announced it would work with Air Canada Cargo to raise revenues and reduce operating costs through possible interline agreements and enhancements to network connectivity.