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" Fast-Change", "conversion"? This may be more marketing pitch and jargon than anything particularly technical. It looks like the conversion is to remove seats from the aircraft and install tie-down latches in the seat tracks. Is there more to it than that? Of course there are W/B and fire watch concerns but that is an issue with the carriage of any cargo. With the floor loading limits remaining equal, will the aircraft actually carry more cargo by piling packages on the floor than by securing it to the existing seating structures?

GTFA

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10 minutes ago, GTFA said:

" Fast-Change", "conversion"? This may be more marketing pitch and jargon than anything particularly technical. It looks like the conversion is to remove seats from the aircraft and install tie-down latches in the seat tracks. Is there more to it than that? Of course there are W/B and fire watch concerns but that is an issue with the carriage of any cargo. With the floor loading limits remaining equal, will the aircraft actually carry more cargo by piling packages on the floor than by securing it to the existing seating structures?

GTFA

Looks like there are some sort of roller mats installed in the aisles as well.

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Cargojet Announces Strong First Quarter Results

From Cargojet Inc

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MISSISSAUGAON, May 7, 2020 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the first quarter ended March 31, 2020.

For the Quarter Ended March 31, 2020:

  • Total Revenues were $123.0 million, an increase of $12.6 million or 11.4% versus the previous year.
  • Gross Margin was $32.2 million, an increase of $11.0 million or 51.9% versus the previous year
  • Adjusted EBITDA was $40.2 million, an increase of $7.9 million or 24.5% versus the previous year
  • Adjusted EBITDAR was $40.2 million, an increase of $7.6 million or 23.3% versus the previous year

In the first quarter, Cargojet achieved strong year-on-year operating results and free cash-flow. “While our Domestic Overnight Business held its own as e-Commerce maintained its growth trajectory, our diversification strategy to develop and focus on other lines of business such as ACMI and All-in Charters is paying off with strong year-on-year growth with strong contribution to overall margins” said Ajay Virmani, President & CEO.

“I am particularly proud of our team for swinging into action in tackling COVID-19 challenge. We moved swiftly to implement effective safety and security measures to protect our team as well as customers while ensuring that much needed Supply Chain continued the flow for urgent shipments. We activated our business continuity plans by supplementing additional pilots and operational personnel while successfully handling the unplanned surge in all segments of our Business” commented Mr. Virmani.

“While the longer-term implications, and the full impact of COVID-19 remains unknown, Cargojet is working hard and is well positioned to successfully support this new environment both in the short as well as in the long run” concluded Mr. Virmani.

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Cargojet declares Dividend

From Cargojet Inc

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MISSISSAUGA, ON, May 11, 2020 /CNW/ – The Board of Directors of Cargojet Inc. has declared a cash dividend of $0.2340 per common voting share and variable voting share for the period from April 1, 2020 to June 30, 2020. The dividends will be paid to all shareholders of record as at the close of business on June 19, 2020 and will be payable on or before July 6, 2020. These dividends will be eligible dividends within the meaning of the Income Tax Act (Canada).

Cargojet is Canada’s leading provider of time sensitive premium overnight air cargo services and carries over 8,000,000 pounds of cargo weekly. Cargojet operates its network across North America each business night serving 15 major cities, and selected international destinations. Cargojet owns a fleet of 26 aircraft.

Notice on Forward Looking Statements:

Certain statements contained herein constitute “forward-looking statements”. Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans,” “intends,” “anticipates,” “should,” “estimates,” “expects,” “believes,” “indicates,” “targeting,” “suggests” and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Reference should be made to the issuer’s most recent Annual Information Form filed with the Canadian securities regulators, and its most recent Annual Consolidated Financial Statements and Quarterly Financial Statements and Notes thereto and related Management’s Discussion and Analysis (MD&A), for a summary of major risks. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The issuer assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason, other than as required by applicable securities laws. In the event the issuer does update any forward-looking statement, no inference should be made that the issuer will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

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De Havilland Canada Launches Simplified Package Freighter Conversions for Dash 8-100/200 and Dash 8-300 Aircraft

From De Havilland Aircraft of Canada

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  • Conversion approvals by Transport Canada follow a similar, recently announced approval for the Dash 8-400 aircraft
  • Conversions will support airlift of freight in response to COVID-19
  • Nairobi-based 748 Air Services (K) Ltd is the first operator of the Dash 8-100 Simplified Package Freighter
748-air-services-dash-8-100-sm.jpg

TORONTO, May 12, 2020 /CNW/ – De Havilland Aircraft of Canada Limited (“De Havilland Canada”) announced today that Transport Canada has approved the conversion of Dash 8-100/200 and Dash 8-300 aircraft into Simplified Package Freighters in response to the COVID-19 pandemic. 748 Air Services (K) Ltd, a well-known provider of passenger and cargo services to humanitarian, natural resources and government sectors in Africa, has ordered the Service Bulletin and conversion kits for their four Dash 8-100 aircraft and globally, will be the first operator for the Dash 8-100 Simplified Package Freighter. 748 Air Services (K) Ltd has also ordered the Simplified Package Freighter Service Bulletin and conversion kits for their three Dash 8-400 aircraft.

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Headquartered at Wilson Airport in Nairobi, Kenya, 748 Air Services (K) Ltd distinguishes itself as an innovative and solution oriented company that effectively responds to demands presented within the industry.

“The COVID-19 pandemic has presented us with many challenges including broad government mandates that restrict the movements of both passengers and cargo for an indefinite duration. Movement has been limited to humanitarian cargo only. We have responded with Air Cargo solutions to support the humanitarian, natural resources and government sectors, who will benefit from the conversion of our four Dash 8-100 aircraft and three of our Dash 8-400 (Q400) aircraft into Simplified Package Freighters. We are extremely grateful to De Havilland Canada and Transport Canada for providing these solutions quickly,” said Moses Mwangi, Managing Director, 748 Air Services (K) Ltd. 

“We’re delighted to announce 748 Air Services (K) Ltd as the first customer for the Dash 8-100 Simplified Package Freighter and thank them for their order which also includes conversion kits for their three Dash 8-400 aircraft. We commend them as they reconfigure some aircraft in their fleet to continue their excellent work delivering essential passenger and cargo services in the eastern and central regions of Africa,” said Todd Young, Chief Operating Officer, De Havilland Canada. “De Havilland Canada continues to be highly focused on providing solutions to our operators as they seek mechanisms to redeploy their fleets in response to COVID-19. It is gratifying to know that we are succeeding in creating opportunities for our operators in these challenging times.”

Approved by Transport Canada, De Havilland Canada’s Service Bulletins allow Dash 8-100/200, Dash 8-300 and Dash 8-400 aircraft to be quickly converted into Simplified Package Freighters by the removal of seats and seat track covers in the passenger cabins. The converted Dash 8-100/200, Dash 8-300 and Dash 8-400 aircraft provide total potential cargo capacities of up to 6,500 lb, up to 9,625 lb and up to 17,960 lb respectively.

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I don't know if I'll get an answer to this, but here goes. AC is running some really long cargo routes - looks like YYZ-SYD-AKL-YYZ and YYZ-ICN-PEK-YYZ or something like that. With various COVID entry restrictions, are these fast turnarounds where the off-duty flight crews are sleeping aboard the aircraft, i.e. there is no entry to the destination country to go to a hotel?

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39 minutes ago, dagger said:

I don't know if I'll get an answer to this, but here goes. AC is running some really long cargo routes - looks like YYZ-SYD-AKL-YYZ and YYZ-ICN-PEK-YYZ or something like that. With various COVID entry restrictions, are these fast turnarounds where the off-duty flight crews are sleeping aboard the aircraft, i.e. there is no entry to the destination country to go to a hotel?

I am sure nobody is sleeping on an aircraft in lieu of a proper layover hotel.

Aircraft is routed YYZ-ICN-PEK-ICN-YYZ, multiple crews involved to make it work.

YVR-SYD-AKL-YYZ, which was changed from the few original flights stopping in LAX.

also some flights to EZE and SCL as well.

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Hi Dagger,

I just did one of the YVR-SYD-AKL-YYZ-YVR trips.  It was the same crew, same plane, the entire way.  We had 22hr in SYD, 10h40 in AKL (at the hotel), and 17hr30m in YYZ.  Fun and interesting trip, but the layovers in AKL and SYD were hard lockdown (can’t leave room) so that part wasn’t so great.  The AKL-YYZ leg was 15h in the air (7550 NM), plus some ITCZ detours of an extra couple hundred miles.

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3 hours ago, acsidestick said:

Hi Dagger,

I just did one of the YVR-SYD-AKL-YYZ-YVR trips.  It was the same crew, same plane, the entire way.  We had 22hr in SYD, 10h40 in AKL (at the hotel), and 17hr30m in YYZ.  Fun and interesting trip, but the layovers in AKL and SYD were hard lockdown (can’t leave room) so that part wasn’t so great.  The AKL-YYZ leg was 15h in the air (7550 NM), plus some ITCZ detours of an extra couple hundred miles.

That's interesting. I was wondering how the Aussie and New Zealand officials were handling crews. Hong Kong, of course, has a hard 14-day quarantine for airline passengers (made all the more controversial because they appear to be forcing people from some third world countries into special, rather primitive dorm-like facilities with poor food etc rather than let them choose where to quarantine.) I presumed air crews are handled differently in HKG because it wouldn't be economical to fly to HKG at all if crews were being quarantined. That piqued my interest about how air crews are handled in other markets.  

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2 hours ago, dagger said:

That's interesting. I was wondering how the Aussie and New Zealand officials were handling crews. Hong Kong, of course, has a hard 14-day quarantine for airline passengers (made all the more controversial because they appear to be forcing people from some third world countries into special, rather primitive dorm-like facilities with poor food etc rather than let them choose where to quarantine.) I presumed air crews are handled differently in HKG because it wouldn't be economical to fly to HKG at all if crews were being quarantined. That piqued my interest about how air crews are handled in other markets.  

Best info I have for HKG is all but normal ops for crews.  

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6 hours ago, acsidestick said:

Hi Dagger,

I just did one of the YVR-SYD-AKL-YYZ-YVR trips.  It was the same crew, same plane, the entire way.  We had 22hr in SYD, 10h40 in AKL (at the hotel), and 17hr30m in YYZ.  Fun and interesting trip, but the layovers in AKL and SYD were hard lockdown (can’t leave room) so that part wasn’t so great.  The AKL-YYZ leg was 15h in the air (7550 NM), plus some ITCZ detours of an extra couple hundred miles.

I find it interesting that when I follow some of the cargo flights on Flighttracker and other sites there seems to be little correlation  between scheduled and actual arrival times. And that;'s not just AC - it seems everyone is leaving early and arriving early on long-haul flights. I's less so with regular flight numbers, like AC873, but with 7000-series flights, it's as if the bus leaves as soon as the load is in - then dash home. :)

I guess takeoff slots are rather fluid these days, unless you are in Shanghai.

Edited by dagger

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1 hour ago, dagger said:

I find it interesting that when I follow some of the cargo flights on Flighttracker and other sites there seems to be little correlation  between scheduled and actual arrival times. And that;'s not just AC - it seems everyone is leaving early and arriving early on long-haul flights. I's less so with regular flight numbers, like AC873, but with 7000-series flights, it's as if the bus leaves as soon as the load is in - then dash home. :)

I guess takeoff slots are rather fluid these days, unless you are in Shanghai.

If I am not mistaken, Flighttracker only works on airborne times (Takeoff - Landing).  

Was in PVG recently, no delays, things moved along quite smoothly.

 

 

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10 hours ago, dagger said:

I find it interesting that when I follow some of the cargo flights on Flighttracker and other sites there seems to be little correlation  between scheduled and actual arrival times. And that;'s not just AC - it seems everyone is leaving early and arriving early on long-haul flights. I's less so with regular flight numbers, like AC873, but with 7000-series flights, it's as if the bus leaves as soon as the load is in - then dash home. :)

I guess takeoff slots are rather fluid these days, unless you are in Shanghai.

easier to beat sched when you don't have to deal with passengers.

 

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I note that there are three AC 777-300s on their way in from Narita today. I realize one or more of the three probably cycle through at least one other Asian destination (Shanghai presumably) but that must still make for interesting ground handling work in NRT.

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50 minutes ago, dagger said:

I note that there are three AC 777-300s on their way in from Narita today. I realize one or more of the three probably cycle through at least one other Asian destination (Shanghai presumably) but that must still make for interesting ground handling work in NRT.

They all cycle through PVG I think.  NRT is a ghost town and the flights are usually around 60-90 minutes apart.  so not a big deal.

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Hi Dagger,

In SYD, we were escorted, before C&I to a National Health Services desk, a solid 75m the wrong direction from C&I.  There were two people present, a NHS nurse, and a Transport Australia official (not the type that sit by the scanners).  We had to sign a couple of forms stated that we understood the restrictions placed on our movement.  Masks had to be worn from airplane to hotel room, and not removed, even in the transport.  We were then given a 5minute briefing that under no circumstances were we to leave the hotel, and we were expected to order room service, however, we could order skip the dishes orders, but the food must be brought to the lobby, and we were, again, not to leave the hotel.  Also, we were expected to forgo exercise outside of the room.

Auckland was at a whole new level of isolation.  Everything as above, but we were prohibited from leave the room at all, except for a fire.  At checkin, there were 3 New Zealand Transport officials at 3 desks.  To get into the hotel, we had to sign in with a barricaded security guard outside first.  We then entered the hotel and found out this was a quarantining hotel, with cruise ship passengers, etc, going through the mandatory 14 days under lockdown.  If any got sick, they were moved from this hotel to another facility.  We were given our own floor, with our own elevator, including its own unique extra keycard so that no non-airline personnel could come to our level.  Food delivery was not allowed, and only room service was permitted.  Upon leaving the hotel, we were required to sign out again at the front door.  There was nobody, and I mean nobody, on the streets or sidewalks in Auckland.

Note runway 07/25 is now a qantas storage area.  Looks like the AMEs added some artistic flair to liven up a sad situation.
 

 

 

 

81B349B1-0480-4EF2-AD94-8A8117F6DD50.jpeg

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More cargo only routes from AC


This next phase of our expansion kicks off June 1, with the introduction of scheduled cargo-only flights to five destinations: Bogota (BOG), Lima (LIM), Amsterdam (AMS), Dublin (DUB), and Madrid (MAD). Flights will be operated on our newly converted A330C aircraft.

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One of Mondays PVG-YYZ flights was a 777C. In addition to the pallets in the belly it had just over 9,000 kg loaded in the cabin. It was quite impressive. 

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Cargojet Announces C$100 Million Bought Deal Offering of 5.25% Listed Senior Unsecured Hybrid Debentures

From Cargojet Inc

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MISSISSAUGA, ON, June 22, 2020 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT, CJT.A) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by RBC Capital Markets, CIBC Capital Markets and Scotiabank under which the underwriters have agreed to purchase C$100 million aggregate principal amount of listed senior unsecured hybrid debentures due June 30, 2026 (the “Debentures”) at a price of C$1,000 per Debenture (the “Offering”). Cargojet has also granted the underwriters an option to purchase up to an additional C$15 million aggregate principal amount of Debentures, on the same terms and conditions, exercisable in whole or in part, for a period of 30 days following closing of the Offering. The Offering is expected to close on or about July 16, 2020.

The Debentures will be direct, senior unsecured obligations of the Corporation and will rank subordinate to all existing and future senior secured and other secured indebtedness of the Corporation, and will rank pari passu with all existing and future senior unsecured, and other unsecured and unsubordinated indebtedness of the Corporation. The Debentures will rank pari passu with the Corporation’s 5.75% listed senior unsecured hybrid debentures due April 30, 2024 and the Corporation’s 5.75% listed senior unsecured hybrid debentures due April 30, 2025. The Debentures will bear interest at a rate of 5.25% per annum, payable semi-annually in arrears on June 30 and December 31 of each year, with the first interest payment on December 31, 2020. The December 31, 2020 interest payment will represent accrued interest from the closing of the Offering, to but excluding December 31, 2020. The Debentures will mature on June 30, 2026 (the “Maturity Date”).

The Debentures will not be redeemable by the Corporation prior to June 30, 2023 (the “First Call Date”), except in certain circumstances upon the occurrence of a change of control of the Corporation in accordance with the terms of the indenture (the “Indenture”) governing the Debentures. On or after the First Call Date and prior to June 30, 2024, the Debentures may be redeemed by the Corporation, in whole or in part from time to time, at a redemption price equal to 103.9375% of the principal amount of the Debentures redeemed plus accrued and unpaid interest, if any, up to but excluding the date set for redemption. On or after June 30, 2024 and prior to June 30, 2025, the Debentures may be redeemed by the Corporation, in whole or in part from time to time, at a redemption price equal to 102.625% of the principal amount of the Debentures redeemed plus accrued and unpaid interest, if any, up to but excluding the date set for redemption. On and after June 30, 2025 and prior to the Maturity Date, the Debentures may be redeemed in whole or in part at the option of the Corporation at a price equal to their principal amount plus accrued and unpaid interest, if any, up to but excluding the date set for redemption. The Corporation shall provide not more than 60 nor less than 40 days’ prior notice of redemption of the Debentures. The Corporation has the option to satisfy its obligations to repay the principal amount of the Debentures due at redemption or maturity by issuing and delivering that number of freely tradeable Common Voting Shares and/or Variable Voting Shares, as applicable, in accordance with the terms of the indenture governing the Debentures.

The Corporation intends to apply the net proceeds of the Offering to pay down the Corporation’s revolving credit facility to free up capacity to fund future anticipated capital expenditures, including the purchase of aircraft.

A preliminary short form prospectus will be filed with securities regulatory authorities in all provinces and territories of Canada. The Offering is subject to customary regulatory approvals, including the approval of the Toronto Stock Exchange.

The securities to be offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services and carries over 1,300,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft.

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