Cargojet buys Georgian Express

[PJ_Slick]

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: [phone], or [email protected]

[J.O.]

The Purolator contract has not been awarded as yet.

[roundtheworld123]

Heard from both sources that two players in the game CargoJet and Skyservice. No awards yet but both players have a distinct reason to be the winner.....let the games begin..hope both groups do well either way!!

[Islanderguy]

Think you might be wrong, sounds like neither of them got the contract.

[CaptW5]

Back to Kelowna Flightcraft, correct?

[Islanderguy]

That's what I hear.

[Captaingomes]

KFC renewed with Purolater, but yes, both Cargojet and Skyservice were in the running. For the sake of industry stability, it's probably a good thing that KFC kept the contract. I do wonder if they plan on keeping the 27's much longer, and what the long-term plan is at KFC?

I am even more curious to see what Cargojet's plans are with the new regional division. Does anybody have any insight?

[J.O.]

I wonder how many swords Barry had to fall on to get the contract back???