Guest2 Posted November 12, 2022 Share Posted November 12, 2022 Qantas Airbus A330 Off To Germany For Conversion To Dedicated Freighter Chris Loh - Yesterday 11:01 p.m. On November 9th, a Qantas Airbus A330-200 departed Australia for the last time as a passenger aircraft. The widebody made its way to Dresden via Singapore to undergo the conversion to an A330P2F. The jet is one of two Qantas passenger A330s that will be converted into dedicated freighters. Qantas Airbus A330 Off To Germany For Conversion To Dedicated Freighter© Provided by SimpleFlying Aircraft and flight details Departing Perth for Singapore as flight QF7531 on November 9th, the Qantas A330-200 registered VH-EBF then continued onwards to Dresden on November 10th under the same flight number. Interestingly, flight QF7531 began on November 7th when the jet departed Sydney for Melbourne. As if taking a farewell tour of southern Australia, the aircraft went from Sydney to Melbourne, then onwards to Adelaide, and then Perth as QF7531. The aircraft is a little over 15 years of age at the time of this article's publication, and began its career with Qantas Group's low-cost subsidiary, Jetstar in 2007. After flying for Jetstar for eight years, the aircraft was then transferred to the Qantas mainline fleet and given the nickname "King Valley." Since 2015, the aircraft has been flying for Qantas with a configuration of 28 business seats and 243 in economy. Get all the latest aviation news right here on Simple Flying Qantas' A330P2F plans Back in December 2021, Qantas announced that it would be growing its Airbus freighter family with the addition of two A330P2Fs. The work was arranged through the Airbus-ST Engineering joint venture Elbe Flugzeugwerke (EFW). The deal came shortly after Qantas took the title of being the world’s first operator of A321P2F with three freighters. The A330P2Fs are slated to enter service from 2023 onwards. As noted in an EFW statement, conversions are expected to take place in two locations: Dresden and VTMAE in Mobile, Alabama. Describing the process, EFW states: "During the conversion, a comprehensive hardware and software reset is carried out, turning the aircraft into an efficient freighter power horse, which is able to carry up to 61t of gross payload on mid and long ranges." Qantas' dedicated freight operations Most of Qantas' dedicated freighters are actually operated by a separate firm by the name of Express Freighters Australia. The company is a subsidiary of the Qantas Group and currently operates a total of eight dedicated freighters. Whilst all of the aircraft in the Express Freighters Australia fleet are noted as operating for Qantas Freight, EFW notes that the three A321P2F freighters are dedicated to flying for Australia Post. Indeed, a separate release from Airbus shows the A321P2Fs sporting a Qantas tail as part of its livery, with the front of the fuselage having the Australia Post logo and wordmark. The passenger-to-freighter market has seen a lot of activity in recent years, with carriers like Air Canada and Ethiopian Airlines converting their older jets for dedicated cargo operations. The airlines join several leasing firms in converting passenger jets into freighters, extending the service lives of aging passenger aircraft. Indeed, firms like EFW and IAI are being kept busy with this influx of conversion work. Are you excited to see the Qantas Group add the A330P2F into its operations? Share your thoughts by leaving a comment. Qantas IATA/ICAO Code: QF/QFA Airline Type: Full Service Carrier Hub(s): Brisbane Airport, Melbourne Airport, Sydney Kingsford Smith Airport Year Founded: 1920 Alliance: oneworld CEO: Alan Joyce Country: Australia Link to comment Share on other sites More sharing options...
Guest2 Posted November 14, 2022 Share Posted November 14, 2022 Cargojet Renews UPS Canada Air Cargo Service Agreement 14 November 2022Canadian Aviation News MISSISSAUGA, ON, Nov. 14, 2022 /CNW/ – Cargojet announced today they have renewed and extended their Air Cargo Services Agreement with United Parcel Service Canada Ltd. for an additional five-year Term. The current agreement was due to expire on July 1, 2025 and the new Agreement is extended to December 31, 2030. Cargojet continues to provide a comprehensive Canada-wide air cargo service for UPS. Cargojet’s domestic overnight network provides additional capacity and long-term stability to UPS. “Cargojet is extremely pleased to have successfully renewed the domestic Air Cargo Services Agreement with UPS Canada. Cargojet has been the exclusive provider of time-sensitive domestic overnight air cargo services to UPS Canada since 2003. We will continue to provide the most cost-effective, best on-time performance as well as a scalable solution to UPS,” said Dr. Ajay Virmani, CEO of Cargojet. “The renewal of the agreement is a testament to the committed, hardworking, and dedicated team of professionals at Cargojet. Cargojet continues to value our partnership with UPS. We will work together to provide Canadians with world-class and flexible air cargo services in today’s changing business environment,” added Dr. Virmani. 1 Link to comment Share on other sites More sharing options...
Guest2 Posted November 21, 2022 Share Posted November 21, 2022 Quote Determination No. A-2022-152 November 18, 2022 APPLICATION by Air Canada also carrying on business as Air Canada rouge and as Air Canada Cargo (applicant) pursuant to subsection 69(1) of the Canada Transportation Act, SC 1996, c 10 (CTA). Case number: 22-41531 The applicant has applied to the Canadian Transportation Agency (Agency) for a licence to operate, through code sharing, scheduled international services, large and all-cargo aircraft, in accordance with the Agreement between the Government of Canada and the Government of the Republic of Seychelles on Air Transport, initialed ad referendum on December 7, 2016 (Agreement). The Agency is satisfied that the applicant meets all the applicable requirements of subsection 69(1) of the CTA. The Agency also finds that the pertinent terms and conditions of the Agreement have been complied with. Accordingly, the Agency issues the licence. Pursuant to subsection 71(1) of the CTA, the licence is subject to the conditions prescribed by the Air Transportation Regulations, SOR/88-58, and the following conditions: The Licensee is authorized to operate, through code sharing, scheduled international services on the route(s) set out in the Agreement. The scheduled international services are to be conducted in accordance with the Agreement and any applicable arrangements agreed to between Canada and the Seychelles. Quote Determination No. A-2022-151 November 18, 2022 APPLICATION by Air Canada also carrying on business as Air Canada rouge and as Air Canada Cargo (applicant) pursuant to subsection 69(1) of the Canada Transportation Act, SC 1996, c 10 (CTA). Case number: 22-41528 The applicant has applied to the Canadian Transportation Agency (Agency) for a licence to operate, through code sharing, scheduled international services, large and all-cargo aircraft, in accordance with the Agreement between the Government of Canada and the Government of the Republic of Mauritius on Air Transport, initialled ad referendum on December 8, 2016. (Agreement). The Agency is satisfied that the applicant meets all the applicable requirements of subsection 69(1) of the CTA. The Agency also finds that the pertinent terms and conditions of the Agreement have been complied with. Accordingly, the Agency issues the licence. Pursuant to subsection 71(1) of the CTA, the licence is subject to the conditions prescribed by the Air Transportation Regulations, SOR/88-58, and the following conditions: The Licensee is authorized to operate, through code sharing, scheduled international services on the route(s) set out in the Agreement. The scheduled international services are to be conducted in accordance with the Agreement and any applicable arrangements agreed to between Canada and the Republic of Mauritius. Link to comment Share on other sites More sharing options...
Guest2 Posted November 23, 2022 Share Posted November 23, 2022 WestJet Cargo Delays Commencement Of Operations “The certification didn’t go as planned, and we had different expectations about the duration of the certification. It’s been a lengthy process. Unfortunately, we had to delay the start.” The approval and certification processes will take months, as Transport Canada needs to approve the structural modification, and then WestJet needs to add the aircraft to its operators' certificate. As part of the conversion process, Boeing installed a wide cargo door in the fuselage and added reinforced flooring to support cargo containers. WestJet Cargo is a startup airline within an existing airline and will be the first airline in Canada to operate a 737-800P2F modified through Boeing’s conversion program. By midsummer, two of the four aircraft were already in WestJet’s possession, and now all four are sitting in Calgary. WestJet Cargo will have lost nine months between this year’s anticipated start date of July and March 2023. Aeronautical Engineering Inc., another conversion company in Canada, earned approval to convert the 737 through a supplemental type certificate. Boeing cannot get a supplemental type certificate because it owns the aircraft’s type certificate. To get approval, Boeing needs to modify the type of certificate through a service bulletin. Certification troubles Because of current and previous troubles with its MAX aircraft, the FAA and Boeing have a complicated relationship. Problems with the MAX planes and the recent 787 fuselage problems have followed Boeing across its northern border into Canada. Aviation regulators that would usually trust Boeing because of its previous outstanding history are now making Boeing follow all processes without cutting any corners. The FAA and Transport Canada have recently changed their approach to aircraft certification, requiring that they be in a service-ready state. Boeing’s 737-800s may not be ready for certification because Transport Canada has a new requirement for planes to undergo “cold-soak” testing to prove their ability to perform in freezing weather. The testing involves taking the aircraft to an airport in northern Canada, where temperatures may reach -40ºF and testing vital aircraft systems like flaps, doors, and gears to ensure that nothing freezes up. When launched, WestJet Cargo will offer domestic and trans-border services between Toronto and Miami, Toronto and Los Angeles, and four Canadian cities, Vancouver Calgary, Toronto, and Halifax. The original business model focused on domestic and overnight express delivery before offering scheduled flights between major cities and over the border into the United States. WestJet Cargo expects to begin signing contracts for its services in February. Link to comment Share on other sites More sharing options...
Guest2 Posted December 7, 2022 Share Posted December 7, 2022 WestJet Will Launch Boeing 737 Cargo Operations In March BYRILEY PICKETT PUBLISHED 7 HOURS AGO WestJet Cargo has confirmed that it will launch its fleet of 737 freighters this upcoming March. Canadian Air Carrier WestJet Cargo has announced that it will launch its fleet of four freighters early next year. After a lengthy approval process, the startup airline will be able to launch operations aboard its fleet of four Boeing 737-800s converted to haul cargo. The airline hopes to take advantage of the strong ongoing demand for air cargo that has grown dramatically during the pandemic. Fleet launch WestJet Cargo has confirmed that on March 26th, WestJet Cargo will finally launch its long-anticipated 737 cargo operations. This date was previously announced as the airline's anticipated launch date. The airline has stated that 2023 will be a pivotal time for the company. WestJet Cargo is a startup company within the existing passenger air carrier WestJet. The purpose of starting a separate cargo company under the same name is to expand the airline's services by reaching more customers, building a more extensive network, and obtaining a larger portion of the Canadian air transit market. The recent announcement that the fleet will be launched in March is great news for the company as it will be able to commence freighter operations. WestJet's Executive Vice President of Cargo, Kirsten De Bruijn, "WestJet Cargo is about to enter a very promising and exciting period in its development. The arrival of our new fleet will enable us to meet the rising demand of the Canadian market, more than ever before." Get the latest aviation news straight to your inbox: Sign up for our newsletters today. Freighter aircraft The Boeing 737 freighters that will constitute the backbone of the company's operations were all previously used to haul passengers before being recently converted to freighter aircraft. The first of these airplanes was delivered to the airline earlier this year. Since its delivery, the other three have arrived and have undergone the conversion process. The company initially announced plans to launch operations this past summer; however, this launch date needed to be amended because the aircraft were not yet ready, nor were they certified.Photo: WestJet While undergoing the conversion process, these four 737s have been awaiting approval from Transport Canada. It is not entirely clear whether or not the approval has been granted for all four aircraft. During the recent confirmation of the launch date, the airline did not indicate if the approval of the aircraft was finalized. The four freighters currently reside on the apron at Calgary International Airport (YYC) while they await the opportunity to return to the skies. Delayed approval While the airline has not yet shared the reason for confirming the launch date that only two weeks ago was only an anticipated launch date, one clear thing is that the aircraft must each be thoroughly inspected before being approved. Even though these aircraft have been operated for commercial operations previously, the interior conversions significantly change the aircraft's structure. Transport Canada must inspect each one to ensure it complies with all standards. These range from ensuring the weight and balance of the aircraft is in line with the appropriate specifications to ensuring all onboard cargo security devices, such as ground clamps, are properly installed and are in proper working order. Link to comment Share on other sites More sharing options...
Guest2 Posted December 8, 2022 Share Posted December 8, 2022 US Cargo Carrier Atlas Air Receives Boeing 777 Freighter Story by Joe Kunzler • Yesterday 7:40 p.m. At the same time that Atlas Air is preparing to receive the last 747 ever built, it is also obtaining the first of four Boeing 777-200LR/777F freighters to operate on behalf of MSC Mediterranean Shipping Company. According to a September 26, 2022 statement, the Boeing 777 freighters will complement MSC’s container capabilities. US Cargo Carrier Atlas Air Receives Boeing 777 Freighter© Provided by SimpleFlying Atlas Air’s partnership with MSC Atlas Air’s partnership with MSC is to bring MSC into the air cargo business. As Jannie Davel, Senior Vice President Air Cargo at MSC, explained in a November 28, 2022 statement; “We are delighted to see the first of our MSC-branded aircraft take to the skies and we are looking forward to start serving the market with our new Air Cargo solution. We believe that MSC Air Cargo is developing from a solid foundation thanks to the reliable ongoing support of our operating partner Atlas.” Considering that Atlas Air has a strong reputation as an air cargo operator capable of much more and recently with a 747 conducted a Sustainable Aviation Fuel (SAF) flight, it appears the excitement is well placed by the world’s largest container shipping company. For John Dietrich, President and Chief Executive Officer Atlas Air Worldwide having MSC as a customer translates into “Supporting MSC as it develops its airfreight business and further enhances its position as a global leader in transportation and logistics”. This is done by using the 777Fs and “The unparalleled air cargo expertise brought by our Atlas team.” Dietrich went on to say, “We are pleased that all four of our newly acquired 777-200Fs are placed on a long-term basis with MSC, providing them with dedicated capacity to support their growth and expansion.” Boeing 777F statistics The Boeing 777F – which is based on the 777-200LR with fuel tanks from the 777-300ER – is the first freighter variant of the 777 Family. The second is the 777-8 freighter currently in development. A Boeing 777F can haul 112 standard tons (101,604.691 kilograms) and 4,880 nautical miles (9,038 kilometers). The capacity is, according to Boeing AERO, for 27 pallets (96 by 125 inches by 120 inches; 2.5 by 3.1 by 3 meters) on the main deck as per the above graphic. The lower cargo hold can handle another 10 pallets plus 600 cubic feet (17.0 cubic meters) of additional bulk cargo. Read more about the Boeing 777 family. Although airliner pallets are not standard shipping containers, the shipping concept of using containers is the same. This way, cargo can be quickly loaded and unloaded – as well as enhancing tracking. Boeing 777F vs. Boeing 747-8F With the Boeing 747-8F and Boeing 777F both being acquired by Atlas Air, a comparison seems appropriate. Capability 747-8F 777F Range 4,390 nmi (8,130 km) 4,880 nmi (9,038 km) Payload 308,000 lb (140,000 kg) 224,000 lb (101,605 kg) Engines Four Two Basically, Atlas Air is acquiring the last 747-8F freighters for substantial payload but also 777Fs for 580 nautical miles of additional range on two engines instead of four. 1 Link to comment Share on other sites More sharing options...
Guest2 Posted January 17, 2023 Share Posted January 17, 2023 Cargojet extends Master Services Agreement with Canada Post Corporation and Purolator Inc. until 2029 17 January 2023Canadian Aviation News Strategic Renewal with Canada Post Corporation and Purolator Inc. reinforces Cargojet’s Leadership Position in the Domestic Air Cargo Market MISSISSAUGA, ON, Jan. 17, 2023 /CNW/ – Cargojet Inc. (“Cargojet“) (TSX: CJT) is pleased to announce today that it has extended the Master Services Agreement (the “Agreement“) with Canada Post Corporation and Purolator Inc., (Canada Post Group of Companies “CPGOC“) until September 30, 2029. An additional option to renew to March 31, 2031, continues to remain available. Cargojet and CPGOC first entered into the Agreement in 2014 for a seven-year term, with CPGOC exercising its first three-year renewal option in 2017 extending the Agreement until March 31, 2025. The newly extended Agreement will also continue to have minimum guaranteed volumes allowing Cargojet to continue to invest in value-added and enhanced services. “From the very first day of our relationship with CPGOC, we have focused on delivering an unparalleled service, industry leading reliability and on-time performance. The customer centric mindset of our entire team has once again allowed us to renew the trust and confidence of two of Canada’s most iconic brands,” said Ajay Virmani, President & Chief Executive Officer, Cargojet. “Cargojet’s flagship domestic air network is uniquely positioned to serve the needs of all of our strategic customers. By serving over 90% of Canadian population each and every day, we provide a critical backbone for Canada’s supply chains”, concluded Mr. Virmani. About Cargojet: Cargojet is Canada’s leading provider of time sensitive premium air cargo services to all major cities across North America and select international destinations, providing dedicated, ACMI, CMI and international charter services and carries over 25,000,000 pounds of cargo weekly. Cargojet owns/operates a fleet of 40 aircraft. Airlines, Canadian Aviation News, CargojetCargojet 1 Link to comment Share on other sites More sharing options...
Guest2 Posted January 17, 2023 Share Posted January 17, 2023 Air Canada staff forced to think 'outside the box' in shipment of largest item airline has ever fit into Boeing 767 Air Canada staff in Toronto were “put to the test” when recently tasked with shipping one of the largest items the airline has ever loaded into a Boeing 767. (Air Canada) Abby O'Brien CTV News Toronto Multi-Platform Writer Follow | Contact Published Jan. 17, 2023 7:14 a.m. MST Share facebook twitter reddit More share options Air Canada staff in Toronto were “put to the test” when recently tasked with shipping one of the largest items the airline has ever loaded into a Boeing 767 – a 44-foot long IMAX screen weighing nearly 2,000 lbs. The screen was shipped to Quito, Ecuador in November for a viewing of James Cameron’s “Avatar: The Way of Water,” according to a release issued by the airline Tuesday. “While Air Canada Cargo moves some pretty large items with its Boeing 767 freighters, the shipment of an IMAX screen from Toronto to Quito in November put the aircraft and the Air Canada Cargo teams to the test,” the release read. “The 44-foot long, 800-kilogram crate that housed the screen was one of the largest items Air Canada Cargo has fit into the 767.” RELATED STORIES Plane crashes, ends up on road near airport in Markham, Ont. B.C. family recalls 'amazing' experience working on new Avatar movie 'Avatar 2' makes waves with $134 million domestic debut Movie reviews: 'Avatar: The Way of the Water' has breathtaking visuals, but too simple a story Air Canada says they’ve never had to transport something so long in the 767s before, meaning the team “literally had to write the manual on how to properly and safely ship the screen.” Air Canada’s Cargo Operations Engineering Manager, Mamun Ansari, oversaw the planning and execution of the move. “We had to think outside the box because this was something we never did before, and despite some initial thoughts of ‘what did we get ourselves into,’ everyone on the team bought into the challenge and was excited to solve this puzzle,” Ansari said. “We felt it would be a real feather in our cap.” The screen was first transported from Montreal to Toronto Pearson International Airport by truck, Ansari said. The team then had to build a mock-up of the crate that would carry the screen using ABS pipes. This initial step took days, they said. Then, the team used two loaders, placed at a “canted angle” to the 767, that lifted the crate, “while a team of up to 20 Air Canada staff employees helped manoeuvre the crate into position inside the main deck.” It took several hours of “methodical” movements to make sure the crate was properly secured for its transcontinental flight. “This was a total team effort and everyone at Air Canada Cargo is really proud of this,” Ansari said. “There was a lot of excitement around this challenging shipment, but the teams all rose to the occasion and executed the plan.” 2 Link to comment Share on other sites More sharing options...
Innuendo Posted January 18, 2023 Share Posted January 18, 2023 A few years ago a French competitor in a "Round the World" yacht race needed a new mast shipped from France to a South American port. Air France got it into a 707 freighter by way of removing a cockpit window and feeding it into the cargo bay. I believe it was a bare extrusion without any rigging. Wonder what that cost them. Link to comment Share on other sites More sharing options...
J.O. Posted January 18, 2023 Share Posted January 18, 2023 14 hours ago, Innuendo said: A few years ago a French competitor in a "Round the World" yacht race needed a new mast shipped from France to a South American port. Air France got it into a 707 freighter by way of removing a cockpit window and feeding it into the cargo bay. I believe it was a bare extrusion without any rigging. Wonder what that cost them. How long is "a few years ago"? I don't recall ever seeing AF 707s at CDG, not even as freighters. 1 Link to comment Share on other sites More sharing options...
Innuendo Posted January 18, 2023 Share Posted January 18, 2023 (edited) It was QUITE a few years ago. I am not sure if it was AF metal but they got the credit for doing it. i believe it was one of the forward panels they took out to get it in. Found a clip, The boat clearly had enormous potential, but the mainmast broke when she was leading the first leg of the Whitbread. A replacement was flown out from France just in time to make the start of the Cape Town to Sydney leg, which Tabarly won. But this replacement broke not long after the start of the next leg, forcing his retirement from the entire race. Edited January 18, 2023 by Innuendo Link to comment Share on other sites More sharing options...
Innuendo Posted January 18, 2023 Share Posted January 18, 2023 (edited) Happened in the 1973-74 Whitbread Around the world race. Eric Tabarly skipper. https://www.yachtingworld.com/extraordinary-boats/extraordinary-boats-pen-duick-vi-134777 Edited January 18, 2023 by Innuendo 1 Link to comment Share on other sites More sharing options...
Airband Posted January 18, 2023 Share Posted January 18, 2023 1 Link to comment Share on other sites More sharing options...
Tango Foxtrot Posted January 19, 2023 Share Posted January 19, 2023 Years ago while working on a Dash 7 , cargo requested that we put a long skinny shipment in the cabin for the aircraft's repositioning flight in the morning. The package would not go through the doors because of it's length. We opened the cockpit window and fed it through into the cabin. Then we finished our shift and went home thinking... let them figure out how to get it out 1 Link to comment Share on other sites More sharing options...
Guest1 Posted January 26, 2023 Share Posted January 26, 2023 Wednesday, 25 January 2023 Air Canada Cargo expands freighter network with new scheduled service to Liege and Basel Air Canada Cargo has just announced that scheduled service to Liege with its Boeing 767 freighters will begin next month, while flights to Basel are slated to begin in April. Air Canada Cargo will operate flights twice per week to Liege, with service increasing to three flights per week later in the year. Basel, one of Europe's premiere pharmaceutical hubs, will see two flights per week. They will originate in Toronto and have a stop in Halifax. The routes will connect these European destinations to Toronto and Air Canada Cargo’s extensive global network. “Air Canada Cargo continues to expand its freighter network to provide customers with reliable, year-round service that connects key European markets with Air Canada and Air Canada Cargo’s global network through its Toronto hub,” said Matthieu Casey, Managing Director, Commercial at Air Canada Cargo. These new routes are in addition to the recent start of service to Dallas, Atlanta and Bogota as Air Canada Cargo continues to expand its freighter network. Link to comment Share on other sites More sharing options...
Guest1 Posted January 26, 2023 Share Posted January 26, 2023 Air Canada names in-flight chief Turner to lead cargo Airline expands freighter network to more European destinations Eric Kulisch ·Wednesday, January 25, 2023 Ground workers unload a shipment from an Air Canada passenger jet. (Photo: Air Canada) Listen to this article 0:00 / 2:59 1X BeyondWords Air Canada on Wednesday appointed Jon Turner to replace Jason Berry, who is leaving to help run a small U.S. regional airline, as vice president of cargo. Turner is currently vice president of in-flight services and will take on the cargo role effective Feb. 18. Berry surprised the airfreight community this month when he resigned to be vice president of operations at Horizon Air, a subsidiary of Seattle-based Alaska Air Group (NYSE: ALK). Sources said his decision was based on family considerations. Berry will return to the Seattle area where he lived for many years prior to joining Air Canada two years ago. Jon Turner (Photo: Air Canada) Turner has moved up the leadership ranks at Air Canada (OTCUS: ACDVF), gaining expertise in global strategy, operations and customer service. He also served as vice president, maintenance and engineering, with responsibility for the airline’s aircraft acquisition, fleet management and airworthiness. He also was president and CEO of Sky Regional, a Canadian airline that operated under the Air Canada Express brand, and before that as executive vice president at Air Transat. Turner became president of operations for leisure carrier Air Canada Rouge in June 2019 before assuming the helm of Air Canada’s inflight service branch. Air Canada turned to a Canadian native to head the cargo division after previously hiring Americans Berry and Tim Strauss, who now runs Miami-based Amerijet. Berry’s departure comes as Air Canada makes a major strategic shift into the all-cargo sector. He was the architect of the cargo expansion, and industry experts say the company could experience some transition challenges with the change in leadership, especially since Turner doesn’t have direct cargo experience. Turner will oversee how to maximize revenue opportunities for Air Canada’s three Boeing 767 converted freighters, as well as seven more on the way, plus two Boeing 777 freighters scheduled for delivery in 2024. On Monday, Air Canada said it will begin scheduled freighter service to Liege, Belgium, next month, with flights to Basel, Switzerland, slated to begin in April. The carrier will operate two cargo flights per week to Liege, with service increasing to three flights per week later in the year. Basel, a major pharmaceutical hub, will get two flights per week. The flights will originate in Toronto, where Air Canada has a recently expanded temperature-controlled facility, with a stop in Halifax, Nova Scotia. The new routes are in addition to the recent start of service to Dallas, Atlanta and Bogota, Colombia, as Air Canada Cargo continues to expand its freighter network. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. Link to comment Share on other sites More sharing options...
Guest1 Posted February 13, 2023 Share Posted February 13, 2023 Air Canada Cargo and Emirates SkyCargo sign agreement to enhance networks and reach By André Orban - 11 February 2023 1 151 Air Canada Cargo and Emirates SkyCargo have signed a Memorandum of Understanding (MoU) to deliver more benefits to their air freight customers around the world. The MoU, which builds on the airlines’ strategic commercial partnership announced last year, was signed at Emirates Headquarters in Dubai, UAE by Nabil Sultan, Emirates Divisional Senior Vice President, Cargo and Matthieu Casey, Managing Director Commercial, Air Canada Cargo. Under the terms of the MoU, Air Canada Cargo and Emirates SkyCargo will work closely on a number of initiatives, which include expanding cargo interline options and block space agreements, pending any required regulatory approvals. These enhancements aim to offer freight customers of both airlines access to more capacity on a larger combined global network. Air Canada Cargo will have access to Emirates SkyCargo’s high-frequency distribution network through the belly-hold of Emirates scheduled passenger flights to over 140 global destinations, as well as the additional capacity offered by 11 freighters currently in the Emirates fleet. In return, SkyCargo will have access to over 60 cities in Canada and more than 150 cities across five continents through Air Canada Cargo thanks to a fleet of Boeing 767 freighters and the belly-hold capacity of Air Canada’s scheduled passenger flights. Both airlines bring particular experience in handling unique cargo, such as oil and gas drilling equipment, car parts and pharmaceuticals on their dedicated fleet of freighters or passenger aircraft. “We are thrilled to be further strengthening our cargo relationship with Emirates SkyCargo. This agreement enables both carriers to work more closely to optimize our respective freighter and belly capacity throughout each of our extensive and complementing global networks. Customers will benefit from these additional synergies by having access to an even greater array of options, destinations and streamlined handling when shipping globally,” said Matthieu Casey, Managing Director, Commercial, at Air Canada Cargo. “Emirates SkyCargo is committed to being a leading player in the global air cargo industry providing our customers with the highest standards of products and services. Cooperating with Air Canada Cargo will offer our clients added value through more rapid reach to new destinations in Canada via our Toronto and US gateways,” said Nabil Sultan, Emirates Divisional Senior Vice President, Cargo. Since announcing their strategic partnership in 2022, Emirates and Air Canada have implemented a passenger codeshare agreement that spans 46 destinations across North America, the Middle East, Asia and Africa, and have launched a Loyalty program partnership to allow Aeroplan and Skywards members to earn and redeem Miles and Points on all flights operated by Air Canada and Emirates, respectively. MONTREAL, February 10, 2023 Related articles Emirates SkyCargo and Cargolux announce landmark cargo partnership agreement Emirates SkyCargo introduces Airbus A380 ‘mini-freighter’ charter operations Emirates SkyCargo becomes first air cargo carrier to deliver 50 million doses of COVID-19 vaccines to more than 50 destinations Link to comment Share on other sites More sharing options...
Guest1 Posted February 14, 2023 Share Posted February 14, 2023 Drone Cargo Determination No. A-2023-28 February 13, 2023 APPLICATION by Volatus Aerospace Corp. (applicant) pursuant to section 61 of the Canada Transportation Act, SC 1996, c 10 (CTA). Case number: 22-64704 The applicant has applied to the Canadian Transportation Agency (Agency) for a licence to operate a domestic service, all-cargo aircraft. The application is for the commercial operation of an air service using drones for the carriage of cargo. Pursuant to subparagraph 61(a)(ii) of the CTA, the applicant must hold a Canadian aviation document (CAD) in respect of the service to be provided under the licence. In the instance of drone operations, there is no single CAD equivalent to an air operator certificate. The applicant holds CADs in the form of a drone registrations. The applicant's drone operators hold CADs in the form of a drone pilot certificates. The Agency is satisfied that the applicant meets all the applicable requirements of section 61 of the CTA. The licensee is reminded that, pursuant to section 57 of the CTA, it shall not operate an air service unless, in respect of that service, it holds a CAD. It is the licensee's responsibility to ensure that it continues to hold the appropriate CAD, which may be in the form of drone Pilot Certificates, Drone registrations, Special Flight Operations Certificates or any other document required pursuant to the Aeronautics Act, RSC 1985, c A-2. Accordingly, the Agency issues the licence. Member(s) Volatus Aerospace is the leader in commercial drones and UAV technologies, providing integrated solutions for clients globally. The company serves both civil, government, and defense markets. Having established itself in the drone services market, providing infrastructure inspection, mapping and modelling services, the Company has leveraged this expertise into the key sectors of equipment distribution, public safety, drone cargo and delivery, and security and defense. Our aviation division provides commercial aircraft management and charter services, and long-range pipeline patrol and inspection with the integration of AI and autonomous solutions. Volatus Aerospace - Volatus Link to comment Share on other sites More sharing options...
Guest1 Posted February 22, 2023 Share Posted February 22, 2023 Air Canada’s freighter investments weigh on cash flow Cargo revenue declines 40% under weak market conditions Eric Kulisch ·Tuesday, February 21, 2023 Air Canada has a combination fleet of passenger aircraft and freighters. The A330-300 pictured is a widebody passenger plane that can carry a lot of cargo too. (Photo: Air Canada) Air Canada executives said it will take a couple more years for the full revenue potential of the incoming freighter fleet to take effect while the cargo market goes through a slump. Air Canada’s cargo revenue fell 41% in the fourth quarter to CA$288 million ($214 million) from 2021, reflecting overall market weakness related to inflation, an economic slowdown and high retail inventories that afflicted most airlines. For the full year, cargo sales declined 15% to $935 million. The results were still solid considering Air Canada (OTCUS: ACDVF) set a record of $1.2 billion in cargo revenue in 2021, an unprecedented year for supply chain disruptions that drove shippers to airfreight. For the final three months of the year, cargo sales were 55% better than the pre-pandemic baseline of 2019. The fourth quarter typically is the strongest shipping period, but airlines did not experience any bump in business as customers purchased goods earlier in the year on fears of ocean shipping delays and consumers tightened their pocketbooks while shifting spending to services. Comparisons with 2019 are also difficult because Air Canada made a strategic decision during the pandemic to establish a freighter division and now operates three Boeing 767 converted freighters that can carry much larger quantities of goods per flight than passenger aircraft. The airline also no longer operates cargo-only passenger freighters that were deployed during the pandemic when much of the passenger fleet was grounded. Fourth-quarter cargo revenue at United Airlines fell 35% year over year. American Airlines experienced a 23% decline and Delta Air Lines’ cargo revenue was 18% less than in 2021. Air Canada is scheduled to have 12 main deck cargo jets by the end of 2024, but analysts say full revenue benefit from the cargo investments will take time to pay off with weak cargo demand and a growing supply of aircraft capacity combining to drive down rates. The airline is poised this year to receive two more used 767 jets converted for upper-deck freight and three more next year. It already has taken possession of two production freighters from Boeing that have yet to enter service and is scheduled to take delivery of two new Boeing 777 freighters in 2024. The cargo investments dampened free cash flow and won’t begin to pay material dividends until 2025 or 2026, CEO Michael Rousseau said during a briefing for analysts. Fadi Chamoun, transportation analyst for BMO Capital Markets, said in a research note that the freighter investments are likely to squeeze cash and returns on invested capital in the short term. BMO estimates that Air Canada is spending $520 million to $594 million for the cargo aircraft and infrastructure. “We see the air freight market being in an oversupply condition well into 2024, and there is limited visibility into the margin contribution from this segment over the medium term. The investment in cargo is responsible for the bulk of the downward revision in the company’s cumulative free cash flow guidance from $2.6 billion to $1.85 billion for the 2022-2024 timeframe,” he said. Executives say the freighters are increasing business opportunities because they provide more direct scheduled service and certainty, while the passenger network extends connectivity to more cities than the freighters can serve. Freighters also offset seasonal capacity swings in the passenger network, giving shippers year-round options. Chief Commercial Officer Lucie Guillemette said that the freighters will quickly enable the carrier to capture more business in the trans-Atlantic market, but acknowledged that it will take longer to increase revenue in Asia. “Most of the freighters are operating in markets where we don’t have enough belly capacity or they’re operating markets where we don’t actually operate passenger [aircraft],” she said. Cargo network build out Air Canada is expanding its freighter network as it adds more dedicated cargo jets. This month it began scheduled freighter service to Liege, Belgium, and plans to expand the freighter network to Basel, Switzerland, in April. The cargo division is operating two flights per week to Liege, with service expected to increase to three flights per week later this year. Basel, a major European pharmaceutical center, will get two flights per week. The flights originate in Toronto with a stop in Halifax. The new routes are in addition to the recent start of service to Dallas, Atlanta and Bogota, Colombia. On Friday, Jon Turner took command of the cargo division following the resignation of Jason Berry, who is credited with implementing the initial buildout of the freighter fleet and network. Air Canada Cargo this month joined the Pharma.Aero collaboration forum where stakeholders in the pharmaceutical transportation sector share best practices for shipping and distribution of temperature-sensitive medicines. Air Canada last year expanded its cold storage facility in Toronto and uses a wide range of refrigerated containers such as the Envirotainer Releye RLP to keep pharma products at the correct temperature. The airline also expanded its warehouse at Frankfurt airport in Germany, is in the midst of a huge remodel of its London Heathrow cargo terminal and is expanding its Vancouver terminal in preparation for operating the 777 freighters on Asia routes. And Air Canada signed a memorandum of understanding with Emirates SkyCargo to work together on expanding interline options and block space agreements, giving customers more flexibility for routing their shipments around the world. “With the opening of 13 new freighter markets in 2022, and more set to be inaugurated in 2023 and 2024, Air Canada Cargo remains laser focussed on building a freighter program that complements and supports our robust global passenger network and ensures our customers have access to reliable year-round capacity on critical trade lanes,” said Turner, who previously was vice president of in-flight services in the passenger division, in a LinkedIn post. Overall, Air Canada reported a fourth quarter adjusted loss of $161.2 million that was below Wall Street’s consensus estimate despite a record $3 billion in passenger revenue, double the amount in the same period of 2021 and 2% higher than in 2019. The carrier saw improved passenger traffic, including in international markets, but was bedeviled by higher costs for fuel, labor and maintenance that Executives said advanced bookings are still strong but that results aren’t expected to return to pre-pandemic levels until 2024. Passenger capacity is set to grow 24% this year. Link to comment Share on other sites More sharing options...
Guest1 Posted March 7, 2023 Share Posted March 7, 2023 Cargojet to sell 777 aircraft, defer cargo conversions as demand slips Orders for 6 freighters on hold, pushed back as Canadian carrier responds to e-commerce downturn Eric Kulisch ·Monday, March 06, 2023 Cargojet operates a large fleet of Boeing 767 freighters. It wants to step up a level to the 777 but has trimmed its acquisition plan in the face of global economic headwinds. (Photo: Shutterstock/Matheus Obst) Listen to this article 0:00 / 10:08 1X BeyondWords Canadian airline Cargojet said Monday it plans to sell two Boeing 777-300 aircraft it had planned to convert into freighters and is postponing orders for other large-aircraft modifications to preserve cash as the weak global economy lowers demand for shipping goods. The all-cargo carrier, which reported a CA$16.3 million ($12 million) decline in gross margin for the fourth quarter because the normal year-end bump in shipping volumes didn’t materialize, said it expects to finalize the 777-300 sale early this quarter for $53.5 million and defer the delivery of two more 777-300s to help weather the current economic downturn. It didn’t disclose who will buy the aircraft. Cargojet (TSX: CJT), expected to be one of the first carriers to deploy the passenger-to-freighter version of the 777, reiterated that DHL will be the launch customer for four remaining 777 aircraft being added to increase international, long-haul capability and revenue. Cargojet operates 34 freighter aircraft, including 21 medium-size Boeing 767s and 13 Boeing 757s for regional routes. Its core business is operating a domestic overnight network between 16 major Canadian cities for integrated express carriers and international airlines, such as Amazon (NASDAQ: AMZN), DHL Express, Purolator and UPS (NYSE: UPS). Cargojet’s four 777-200 planes will be retrofitted by startup Mammoth Freighters with a wide cargo door, reinforced flooring to support heavy containers and a cargo loading system. Cargojet said it expects deliveries to begin in the first quarter of 2024 and run through the first quarter of 2025. The pullback on fleet expansion negatively impacts Israel Aerospace Industries, which was slated to produce four 777-300s. The purchase of one -300 has been postponed indefinitely, and the second remaining plane was pushed back to the second quarter of 2025. The two airframe engineering firms are vying to manufacture the first 777s converted from passenger to cargo configuration. All 777 freighters operating today were purpose-built by Boeing. Acquiring used passenger jets that have been converted to cargo configuration is less expensive than a new plane, which has the advantage of having a slightly larger payload. Cargojet said its strategy is to better time its capital commitments as the global economy teeters on recession, saying it reserves the option to activate the production slots reserved with Israel Aerospace Industries. “Management is currently maintaining all its existing rights for the aircraft conversion slots and will continue to closely monitor the duration and severity of this economic cycle to allow optionality on fleet ramp, if necessary. Management has a solid track record of securing feedstock aircraft should new opportunities emerge,” it said in the financial documents. “As passenger airlines retire B-777 to move up to B-787 aircraft, the feedstock market for B-777 is expected to remain strong, allowing Cargojet to initially divest its feedstock of B-777s freeing up liquidity immediately,” the airline explained. CEO Ajay Virmani said Cargojet didn’t go through with a planned purchase the third 777-300 originally targeted for IAI and is likely to sell the remaining plane it owns. “We are still in the market should things improve.” Demand for 777 conversion slots remains high and Cargojet could sell its reservations to other airlines or lessors if conditions don’t improve enough for management’s liking, he added. Cargojet also said it is deferring the purchase and conversion of two 767-200s from 2023 to 2024. The combined savings in capital expenditures from the deferred orders amounts to $295 million, much of it to be realized in 2024. The airline still plans to add four 757-200 and three 767-300 freighters to the fleet this year, noting that they are all secured by customer contracts. One of those 767s will be purchased when it comes off leases in November. Mammoth Freighters, established in 2021 with backing by funds managed by Fortress Investment Group, recently inducted its prototype 777-300 into its overhaul hanger in Fort Worth, Texas, where the existing interior will be stripped for flight testing. Two 777-200 Long Range aircraft for Cargojet, including the prototype designated to prove conformity with Federal Aviation Administration standards, previously were placed in separate production lines. Mammoth hopes to have at least one of the -200 rebuilds completed by the end of the year, with FAA certification anticipated in the first quarter of 2024. FAA reviews for all types of aircraft builds are taking longer than in the past because of resource constraints. Rebalancing costs for slower growth Fourth-quarter results were disappointing after executives in November had expressed confidence they wouldn’t experience a decline in volumes, unlike many all-cargo airlines, because their business was heavily tied to express carriers with daily network needs regardless of cargo volumes. The minimum guarantees in long-term transport contracts provide a good buffer against industry ups and downs, but that hasn’t stopped customers from dialing back trips. DHL, for example, redeployed two 767 cargo jets that operated between its Cincinnati hub, Vancouver, Canada, and Shanghai, China, to another route when demand plummeted late last year, but aircraft utilization was lower than before. Mammoth Freighters has a large conversion center for 777 aircraft in Fort Worth, Texas. (Photo: Mammoth Freighters) Management said the amount of cargo shipped and the number of hours flown per aircraft is also expected to decline in 2023 as high inflation causes consumers to spend less. Growth “won’t be like a hockey stick that we have seen in the past three years for sure. It will be in the mid-single-digits probably,” Cargojet CEO Ajay Virmani said on a call with analysts. Cargojet generated $196.3 million in revenue, which was only up 6% versus the same three months in 2021 when fuel surcharges aren’t counted. Management said domestic revenue was essentially flat when other cost pass-throughs were excluded because of the decrease in e-commerce and B2B volumes — and would have been lower if not for automatic rate increases for inflation permitted under long-term contracts. Revenue for turnkey leases — aircraft plus crews and maintenance — increased because of new scheduled routes around the world and ad hoc activity. The charter business is more cyclical than the long-term partnerships with express operators. The gross margin fell to $45.6 million, with adjusted operating income before accounting considerations down 8.4%. Adjusted free cash flow, an indicator of financial strength, declined $2.9 million — partly explaining why the company deferred more capital expenditures on aircraft. The results show Cargojet had difficulty correcting for one-time costs — hiring and training pilots for new routes, overtime and temporary labor — associated with rapid growth to keep up with the surge in shipments during 2021 and early 2022. Onboarding costs for new hires were especially significant. “With 2022 being a record year for year-over-year growth we just couldn’t grow fast enough to service our customers the way they wanted to be serviced. So, when you can’t grow fast enough you do everything pretty much at any cost. Now that’s overstating it, but we ran very high cost for overtime and for training. And to some extent for temporary employees,” said CFO Scott Calver. Earlier in the pandemic, Cargojet was able to hire pilots laid off by passenger airlines who were already certified to fly 757s and 767s, and who only required a few days of training, as opposed to months, he explained. Virmani said the slowdown in volumes didn’t hit Cargojet until December, when the extra network capacity had already been built up. The airline is quickly rightsizing operations, including consolidating cargo on larger 767-300s or switching to more efficient 757s when necessary. Net income was negatively impacted by a write-down in the value of warrants for Amazon and DHL. Cargojet, which derives 30% of its revenue from DHL, last year issued warrants to the express carrier allowing it to acquire up to 9.6% of its shares if it reaches certain revenue milestones. Amazon has the ability to acquire up to 13.9% of Cargojet. Cargojet, in context, still had a banner year in 2022, ending with adjusted earnings before interest, taxes, depreciation and amortization of $242.6 million — more than double 2019 profits. In January, Cargojet announced that Canada Post and courier subsidiary Purolator had extended their transport contract through September 2029. The agreement continues to commit the customers to minimum guaranteed volumes. Cargojet in November also renewed its contract with UPS for another five years, taking it through 2030. 1 Link to comment Share on other sites More sharing options...
Guest1 Posted March 21, 2023 Share Posted March 21, 2023 Canada Gazette, Part I, Volume 157, Number 11: Regulations Amending the Canadian Aviation Security Regulations, 2012 (Air Cargo) The complete document can be viewed at: Canada Gazette, Part 1, Volume 157, Number 11: Regulations Amending the Canadian Aviation Security Regulations, 2012 (Air Cargo) 75 days consultation (until June 1, 2023) March 18, 2023 Statutory authorityAeronautics Act Sponsoring department Department of Transport REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) General Comment Add a comment for the General Comment section Issues The air cargo industry remains vulnerable to extremist elements aspiring to commit acts of unlawful interference, including terrorist attacks. Information on inbound air cargo is not being consistently reviewed and assessed for security risks. To bolster the security of airports, aircraft and the travelling public, the Government of Canada must be empowered to identify high-risk cargo before it is loaded on Canada-bound aircraft. Amendments to the Canadian Aviation Security Regulations, 2012 (CASR 2012) would establish requirements for a Pre-load Air Cargo Targeting (PACT) program. Ensuring all air carriers transporting cargo to Canada submit pre-loading advance cargo information (PLACI) and comply with mitigation measures as directed by Transport Canada (TC), the PACT program would enhance the security of inbound air cargo and ensure that Canadian regulations remain aligned with those of key international trading partners. 1 Link to comment Share on other sites More sharing options...
conehead Posted March 22, 2023 Share Posted March 22, 2023 Good idea. I’m surprised this isn’t done already. Link to comment Share on other sites More sharing options...
Malcolm Posted December 29, 2023 Share Posted December 29, 2023 Cargojet and Canadian North Announce Renewed Cargo Partnership NEWS PROVIDED BY Cargojet Inc. 27 Dec, 2023, 08:00 ET Renewed Partnership to Increase Cargo Capacity in Canada's Arctic MISSISSAUGA, ON, Dec. 27, 2023 /CNW/ - Cargojet, Canada's leading provider of air cargo services, and Canadian North, the Arctic's leading airline, today unveiled a renewed cargo partnership aimed at increasing capacity to better serve Canada's Arctic. The renewal deepens a 20-year relationship, furthering their joint mission to connect and support remote and northern communities. The renewed partnership signifies a major increase in cargo capacity, a strategic move by Cargojet and Canadian North to address the rapidly growing needs of Canada's Arctic. This expansion will enable more frequent and efficient deliveries, ensuring that remote and northern communities in Canada's Arctic have reliable access to essential supplies. Under the renewed partnership, Cargojet will be the exclusive provider for air cargo from Winnipeg and Ottawa to Iqaluit, while Canadian North will continue to deliver air cargo across Canada's Arctic. This builds upon Canadian North's recent announcement to double the size of its cargo facility in Ottawa by 2026, which not only serves as an integral gateway for Inuit communities but also underscores its unwavering commitment to expanding services in the Arctic. "Maintaining and strengthening relationships is crucial, especially when it comes to serving our communities," said Shelly De Caria, Canadian North's President and CEO. "With Cargojet's expertise, we are continuing to combine our strengths to be able to provide faster, more reliable deliveries of essential supplies to our northern communities, creating opportunities for local businesses to grow, and ensuring that people up North have access to the goods they rely on." "Cargojet has been a long-time provider of dedicated and essential air cargo services to Iqaluit for Canadian North and its customers," stated Dr. Ajay K. Virmani, Cargojet's President and CEO. "Cargojet's enviable track record of on-time performance and reliability will ensure that essential goods are delivered on-time to the people of Nunavut. We are very pleased to enter into this new long-term commitment with our partners at Canadian North," he concluded. Together, Cargojet and Canadian North are committed to fostering prosperity in Canada's Arctic by advancing the well-being of Inuit communities through a strengthened partnership dedicated to efficient and reliable cargo transportation. Quick Facts Cargojet and Canadian North have been partners for more than 22 years. This renewed partnership extends a longstanding relationship by another 5 years. Every year, Cargojet assists Canadian North in flying over 10.6 million kilograms of cargo, which is equivalent to approximately 1,000 polar bears. Canadian North serves as an integral gateway to Inuit communities, facilitating essential cargo transportation to these remote regions. Many of these communities lack year-round land or marine access to the rest of the country, making air transport a vital lifeline for their needs. As an Inuit-owned airline, Canadian North is committed to supporting its northern communities through reduced fares and discounted cargo rates for country food, snowmobiles, and ATVs to all Inuit land claim agreement beneficiaries in Nunavik, Nunavut, and the Northwest Territories. 1 Link to comment Share on other sites More sharing options...
Falken Posted December 29, 2023 Share Posted December 29, 2023 Great news for both companies. PS: Thems are some fat bears! Link to comment Share on other sites More sharing options...
Malcolm Posted January 15 Share Posted January 15 CARGOJET PROVIDES UPDATE ON FLEET STRATEGY NEWS PROVIDED BY Cargojet Inc. Jan 15, 2024, 08:00 ET MISSISSAUGA, ON, Jan. 15, 2024 /CNW/ - Cargojet Inc. ("Cargojet" or the "Corporation") (TSX: CJT) today provided an update on its ongoing efforts to further streamline its fleet strategy and the associated impacts to capital expenditures and cashflows. "Throughout 2023 we exercised caution in deploying growth capital given the softer economic conditions," said Dr. Ajay Virmani, Executive Chairman, "Forecasts continue to indicate that the international air cargo market will remain soft in the short to medium term and deploying B-777s into the market would not be strategically prudent. We have decided to exit our commitments for the four remaining B-777 aircraft, while continuing to flex our B767 fleet to accommodate our organic growth strategy," noted Dr. Virmani. "Cargojet has substantially completed the operational groundwork to be able to enter the B-777 market should economic conditions change. Cargojet has also retained the rights to provide the optionality for future conversion slots." "The holiday season performance for 2023 was in line with our expectations," noted Jamie Porteous, Co-Chief Executive Officer. "With our optimized fleet strategy and cost efficiencies gained throughout 2023, we are well positioned to deliver strong cashflows and shareholder value," commented Pauline Dhillon, Co-Chief Executive Officer. As a further update to the above comment, the Corporation is providing the following estimated capital expenditures targets for the years ending December 31, 2024 and 2025 (see "Notice on Forward-Looking Statements" below): Maintenance Capex(1) Growth Capex(1) Proceeds from Dispositions Net Capital Expenditures(1) 2024 $140M - $150M $20M - $30M $100M - $110M $60M - $80M 2025 $140M - $150M $20M - $40M nil $160M - $180M Cargojet is not expecting to incur any meaningful Growth Capital Expenditures in 2024. However, the Corporation continues to monitor macro-economic conditions for opportunities to deploy capital if profitable growth opportunities emerge in the future. Cargojet will continue with a disciplined approach to capital allocation, focusing on four key principles; Maintain dividend growth; Continue to identify growth opportunities to deploy capital that meet its margin requirements; Maintain a share buyback program under its normal course issuer bid ("NCIB"). The Corporation will determine the ultimate size of the buyback program based on available growth opportunities and subject to market conditions; and Target Net Debt to Adjusted EBITDA Leverage Ratio(1) of 1.5x to 2.5x (2022 Leverage Ratio of 2.1). Under its NCIB, the Corporation has purchased for cancellation an aggregate of 366,408 voting shares as at December 31, 2023 for an average purchase price of $104.66, at a total cost of $38.3 million. The table below sets forth the Corporation's cargo operating fleet as at December 31, 2023 as well as the expected operating fleet requirements for the next two years (see "Notice on Forward-Looking Statements" below): Number of Aircraft Forecasted to be in Service 2023 2024 2025 B757 17 15 15 B767 24 25 26 41 40 41 As previously disclosed, the Corporation has four surplus B757 freighters and is exploring options such as dry lease or ultimate sale of these aircraft. The potential sale of these four B757's is not anticipated to have a material impact on Revenues and/or Adjusted EBITDA(1). In the event that the Corporation enters into a leasing agreement, the Revenue and Adjusted EBITDA would increase in accordance with typical market terms and conditions for similar aircraft. The fleet table above assumes two aircraft are dry leased and the remaining two B757's are sold. Cargojet currently owns the feedstock for two B767's and plans to convert them as the demand begins to recover over the next couple of years. Management believes that the current fleet plan will be sufficient to meet its short to medium-term objectives and Cargojet is well positioned to scale up operations as the economic cycle returns to growth. All references to "$" in this press release are to Canadian dollars. 1 Link to comment Share on other sites More sharing options...
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