I wonder if Cargojet is picking up the Purolator contract, or maybe it's just getting rid of all the contract companies it's using for the feeders.
Attention Business Editors:
Cargojet Acquires the Cargo Assets of Georgian Express Ltd.
MISSISSAUGA, ON, July 17 /CNW/ - Cargojet (the "Fund") (TSX: CJT.UN),
Canada's Cargo Airline, today announced it has signed an asset purchase
agreement to acquire the cargo business operations of Georgian Express Ltd.,
of Mississauga, ON. This transaction is valued at $1.4 million plus the cost
of certain aircraft inventories.
Georgian Express is a specialized air cargo operator serving numerous
Canadian markets providing dedicated cargo lift to major couriers and
transportation companies. Georgian Express has operated a cargo business since
1994 and generates annual revenues of approximately $10M. Currently the fleet
consists of three Beech 1900 freighter aircraft and four Cessna Caravan
freighter aircraft. This fleet operates approximately 10,500 flight segments
per year in support of the cargo operation.
"The acquisition of Georgian's air cargo business will allow Cargojet to
introduce a new service to better meet the needs and requirements of our
customers. This new brand and service, CARGOJET REGIONAL, will allow us to
bring quality air cargo services to small and medium sized markets and extend
connectivity to Cargojet's national overnight air cargo network", said Ajay K.
Virmani, President & Chief Executive Officer of Cargojet.
"We are delighted to see our air cargo business evolve and grow within
the strong and expanding Cargojet brand", said Paul Mulrooney, President,
Georgian Express Ltd.
The acquisition is subject to customary conditions and regulatory
approvals, and is expected to close by early October 2007.
Cargojet is Canada's leading provider of time sensitive overnight air
cargo service. Cargojet operates its network from coast to coast transporting
over 550,000 pounds of sensitive air cargo to thirteen major cities in Canada
each business night. Cargojet operates 11 Boeing 727-200 Advance Freighter
aircraft and has recently announced plans to introduce a Boeing 757-200
Extended Range Heavyweight freighter to its fleet.
%SEDAR: 00022068E
For further information: P. Dhillon, Vice President Marketing, Public &
Government Relations, Tel: (905) 501-7373, or
[email protected]