Showing posts with label Cargojet. Show all posts
Showing posts with label Cargojet. Show all posts

Thursday 16 November 2023

Cargojet to off load four Boeing 757 jets

Air cargo operator Cargojet is slimming down its fleet as it struggles to deal with a massive downturn in business despite recently giving shareholders a 10% increase in dividends. 

The Canadian carrier is cutting capacity and trying to preserve its strong cash flows by offering at least four of its converted Boeing 757 aircraft up for sale according to the airline's Chief Financial Officer Scott Calver during a third-quarter results call. 

The planes will continue to be available for other companies to lease until they are sold the airline confirmed. Earlier this year Cargojet sold one Boeing 777-300 aircraft for $36 million resulting in a loss on sale of $3.6 million. Two Boeing 777-300 hulls suffered significant damage due to severe hailstorms, the airline assessed the damage cost $13.8 million, for which the insurers paid  $12.2 million. Cargojet has also paused all planned conversions on 767s and 777s. 

After launching Cargojet 22 years ago as Founder and Chief Executive Officer, Dr. Ajay Virmani will be stepping into the role of Executive Chairman effective January 1, 2024 and the Corporation has announced leadership appointments in a separate announcement. This strategic move reflects Dr. Virmani’s dedication to the company’s long-term success and the need to ensure a seamless transition in the leadership.

Dr. Ajay Virmani, who has served as the CEO since its inception in 2001, along with the team he built, has been instrumental in Cargojet’s remarkable journey from a start-up to Canada’s #1 cargo airline. Just last week Dr. Virmani was appointed to the Order of Ontario.  The Globe and Mail honored Dr. Virmani as the CEO-Strategist of the year in 2020. In 2004, Dr. Virmani was awarded the “Entrepreneur of the Year award” by Ernst &Younge. Recognizing his entrepreneurial and philanthropic contribution to Canada, he was inducted into Canada’s Walk of Fame with his own star in 2021. Cargojet and its leadership has also been recognized as the 50 Best Managed Companies by Deloitte’s and has been a consistent winner of Canada’s Best Cargo Airline award 21 years running.

Under Dr. Virmani’s visionary and entrepreneurial leadership, the company operates a fleet of over 40 Aircraft and consistently posted remarkable financial results. Cargojet has grown its revenues at 16% and EBITDA at 20% compound annual rate over the past 20 years. The world’s top courier brands, integrators, freight forwarders and E-Commerce platforms have partnered with Cargojet to fulfil their middle-mile air requirements. Cargojet’s shareholder have been handsomely rewarded with 18%* compound annual return since its IPO in 2005.

In Dr. Virmani’s new role as Executive Chairman, he will continue to play a pivotal role in shaping the company’s future. He will focus on Strategy, Strategic Customer Partnerships, Acquisitions of major Assets including aircraft and Corporate Governance while also acting as a mentor for emerging talent. This transition allows Dr. Virmani to leverage his extensive experience and deep industry knowledge to guide the board and senior leadership team.

“Everything we have done at Cargojet has been against odds. Starting an airline after 9/11; Convincing global package delivery brands that it is more efficient to abandon their own aircraft fleets in favour of Cargojet’s network; Surviving the 2007-08 global financial crisis, and more recently tackling once in a 100-year pandemic.” said Dr. Ajay Virmani. “As I look back at the Cargojet journey, I am filled with gratitude for the opportunity to work with an amazing team of dedicated and hard-working professionals who have built Cargojet into Canada’s #1 Cargo Airline.  I am looking forward to the opportunity to continue to serve as Executive Chairman of this great team and help develop the next generation of leaders who will continue to beat the odds.” Concluded Dr. Virmani.

“We are extremely grateful to Dr Virmani for his vison, passion and contributions towards the tremendous success Cargojet has achieved. The transition to Executive Chairman by Dr. Virmani is a testament to his unwavering commitment to Cargojet, its excellent team and its potential. The Company remains committed to providing world class Cargo services safely while exceeding customer expectations,” said Paul Godfrey Interim Chair of the Board on behalf of all the Directors.

The Board of Directors and the entire Cargojet family extend their heartfelt appreciation to Dr. Virmani for his outstanding leadership as a Founder and CEO and they look forward to his continued guidance in his new role as Executive Chairman, confident that this transition will mark a new chapter in Cargojet’s ongoing success story.

Thursday 12 November 2020

ATSG Delivers Boeing 767 Freighter to Cargojet

Air Transport Services Group, the leading provider of medium wide-body aircraft leasing, air transportation, and related services, announced today that its leasing subsidiary Cargo Aircraft Management has delivered a converted Boeing 767-300ER freighter to Cargojet Airways of Mississauga, Canada, under the terms of a seven-year lease agreement.

“Our business continues to grow, which is allowing us to further expand our partnership with ATSG,” said Dr. Ajay Virmani, president and chief executive officer of Cargojet. “The Boeing 767 aircraft allows us to meet the capacity demands of our customers, while maintaining excellent reliability on the service front.”

Cargojet is Canada’s leading provider of time-sensitive premium overnight air cargo services, carrying over eight million pounds of cargo weekly. Cargojet operates its network across North America each business night serving 15 major cities as well as selected international destinations.

“It has been exciting to watch what Ajay and his team have been able to do over the past few years,” said Mike Berger, chief commercial officer of ATSG. “The growth trajectory is remarkable, and we are happy to play a part in their success. Our ability to purchase Boeing 767s and convert them into freighters continues to provide a path and platform for our customers to succeed


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Monday 26 August 2019

Cargojet forms strategic agreement with Amazon for air transportation services

Cargojet has confirmed that it has entered into a new strategic agreement with to be the 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.

Monday 7 May 2018

Cargojet Announces Strong First Quarter Results

 Cargojet announced today financial results for the quarter ended 31st March 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

Tuesday 13 March 2018

Cargojet Announces Strong Fourth Quarter and Year End Results

"We are very pleased with the strong financial results
 achieved in the fourth quarter," 

Cargojet announced this week 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