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Thank You. 34 years and 3 months. 20 years in Cargo, 10 years in Cabins and 4 years in Commissary.  I would have liked to have finished 35 but with the pandemic, mass layoffs, my overall hea

Sorta like Viagra.... ( I guess)

La Presse had an interesting little feature yesterday on how the freighter conversion project came about - some AC Cargo and Avionair people at a lower or mid-level talked about it - it doesn't say ho

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The Global Cargo Workhorse: Why The Boeing 747F Is Winning

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While passengers lament the loss of the Queen of the Skies from many airline fleets, as a type, the 747 has never been so prolific. Although passenger variants have been grounded, retired and scrapped, their cargo compatriots, the 747F, have become more important than ever.

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I think if the 747F is winning, Boeing wouldn't be halting production in 2022. It still a very good aircraft for certain all-cargo operators like Atlas, but more orders are being placed for the 777F, and I suspect Boeing would like to focus on fewer production lines.

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Cargojet Announces Plans for Fleet and Route Expansion

cargojet.jpg?w=803

MISSISSAUGA, ON, Feb, 10, 2021 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today a comprehensive plan for its fleet and route expansion to meet domestic and international growth opportunities starting 2021 and beyond.

Having successfully raised $365 million, earlier this month, through an equity raise to pay off debt and acquire new aircraft, Cargojet is rapidly moving forward to execute on its growth strategy to capture additional e-Commerce volumes and international air-freight opportunities through an expanded fleet.

“Fast changing global supply chains and e-commerce trends present a unique opportunity for Cargojet to substantially grow its international business from an opportunistic add-on to a long-term, sustainable growth driver” said Dr. Ajay Virmani, President and CEO. “Having successfully grown our domestic network with a solid market-share and diversifying into ACMI and Charter Services, building a new growth pillar through international business is a natural next step for us”.

Cargojet’s fleet expansion will consist of:

  1. Five Boeing 767 freighters, announced earlier, will begin arriving in 2021 with the first freighter arriving in Q3 of this year with one additional freighter arriving every quarter thereafter. Two of these aircraft will be deployed within its domestic network to meet projected e-Commerce growth and add stand-by capacity while the remaining three freighters will be used for international routes to select strategic destinations to capture emerging growth opportunities beginning Q4, 2021.
  2. Two Boeing 777 freighters will be arriving in 2023 with Cargojet having the option to add two more B777s in 2024. The first two of these freighters will be deployed for long haul Asian routes and Emerging South Asian markets strategically integrated with Cargojet’s domestic network and in addition, they will serve and connect seamlessly with select European and South-Central and North American cities.
  3. Cargojet expects all of its fleet to have fully completed its major regular and heavy maintenance by the end of Q3, 2021. This will enable Cargojet to begin international service to select cities in Europe and South-Central and North America starting Q4, 2021 utilizing its existing fleet and add capacity as new freighters come on-line.

With this expanded fleet, Cargojet will be better positioned to meet the growth expectations of its customers and build on its strong domestic network covering 15 major cities everyday while selectively adding International destinations that will strategically position Cargojet to service fast growing domestic and cross-border e-Commerce and urgent-cargo opportunities. In addition, Cargojet will continue to explore and focus on additional growth opportunities in the vast US market.

 

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747 Operator Atlas Air Turns $360m Profit For 2020

In 2020, Atlas Air had a net income of $360.3 million due to strong increases in volumes, revenue, and earnings by ongoing demand for the air cargo business worldwide, despite the COVID-19 crisis.

 

The crisis is the best opportunity for cargo airlines

The COVID-19 crisis has crippled the aviation industry. Passenger airlines are suffering from the worst demand debacle ever. But, while airlines like Lufthansa, Aeromexico, American Airlines, and many others are posting yearly net losses, cargo carriers seem to be thriving.

According to a press release seen by Simple Flying, John Dietrich, president and CEO of Atlas Air said,

“We finished this unprecedented year on a strong note, with financial and operating results that exceeded our expectations. I’d like to thank everyone at Atlas for stepping up to deliver an extraordinary peak season and full-year for our business and our customers.”

Atlas Air reported a net income of $360.3 million. In contrast, the carrier had a net loss of $293.1 million in 2019, so that’s a turnaround.

n December 31, 2020, Atlas Air had cash and cash equivalents worth $856.3 million, compared with the $114.3 million it had one year before.

Atlas Air faced the operational complexities of the COVID-19 pandemic by adding widebody capacity. It also increased aircraft utilization and grew block hours to carry volumes at a historic pace.

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“We are leveraging our unrivaled portfolio of assets and the scale of our global network. We are also continuing to diversify our customer base and have entered into numerous long-term charter agreements with strategic customers,” added Dietrich.

 

The largest 747 operator worldwide continues strong

We know Atlas Air as an American airline that offers several cargoes, charter, and leasing operations worldwide. The airline is the largest Boeing B747 operator globally. It has 55 ‘Queens of the Skies’ in its fleet.

Last month, Atlas Air announced that it would buy the last four Boeing 747 aircraft ever to be built. These four 747-8 freighters will be delivered between May and October 2022. After that, Boeing will end the production of the iconic aircraft.

Atlas Air stated that the 747-8 provides 20% higher payload capacity and 16% lower fuel consumption than the 747-400. The 747-8 also provides a 25% higher capacity than the 777F and reduces noise by approximately 30%.

About the order for four new ‘Queens of the Skies,’ John Dietrich added,

“We like the aircraft very much; it’s performed exceptionally well for us. And we expect there will be continued demand for that aircraft. What we find in good times and in tougher times, the best, most efficient aircraft are the ones that remain flying, and the 747-8 will certainly be that.”

 

What can we expect for 2021

Despite Atlas Air not providing a full-year 2021 earnings outlook due to the pandemic, we can still see where the airline is going.

Atlas Air expects to fly approximately 85,000 block hours in the first quarter of 2021. It aims at having revenue of nearly $820 million and an adjusted EBITDA of about $150 million.

The net income should grow up to 65% compared to the one it had during the first quarter of last year, said the airline.

Nevertheless, Atlas Air anticipates continued impact by ongoing pandemic-related expenses, like pilot premium pay and operational costs. The committed expenditures to acquire aircraft, such as 747-400 used for replacing older planes, are expected to be $264.7 million in 2021.

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Cargojet Increases Quarterly Dividend by 11.1%

MISSISSAUGA, ON, March 4, 2021 /CNW/ – The Board of Directors of Cargojet Inc. has declared a cash dividend of $0.2600 per common voting share and variable voting share for the period from January 1, 2021 to March 31, 2021, an increase of $0.0260 or 11.1% per share from the previous quarter.

“In recognition of our 2020 results and our strengthened financial position, our Board has voted to increase the dividend” said Dr. Ajay Virmani, President and Chief Executive Officer. “We remain committed to prudently manage our cashflows and will continue to strike the right balance between investing in growth and returning cash to shareholders”, he added.

Cargojet has a long history of providing value to its shareholders through regular dividend increases. This also marks the 16th consecutive year Cargojet has paid dividends or cash distributions.

The record date for determining shareholders of the Corporation entitled to receive payment of the dividend of the Corporation shall be December 19, 2021 and the payment date for such dividend shall be on or before April 5, 2021. 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 air cargo services to all major cities across North America, providing Dedicated, ACMI and International Charter services and carries over 25,000,000 pounds of cargo weekly. Cargojet operates its network with its own fleet of 28 cargo aircraft.

 

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It seems like AC is running a lot of freighter ops these days. I've even seen some seventh freedom legs involving the US. I know there is a container shortage that is causing huge backlogs in sea freight, so much so that some forwarders are moving what is normally sea freight by air even with much higher rates. 

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20 minutes ago, dagger said:

It seems like AC is running a lot of freighter ops these days. I've even seen some seventh freedom legs involving the US. I know there is a container shortage that is causing huge backlogs in sea freight, so much so that some forwarders are moving what is normally sea freight by air even with much higher rates. 

What’s the cause of the sea container shortage?

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It looks

10 minutes ago, conehead said:

What’s the cause of the sea container shortage?

This seems like a pretty good explanation

https://www.hillebrand.com/media/publication/where-are-all-the-containers-the-global-shortage-explained

It also looks like it will continue for months. Great news for freighter operators. I noticed last night AC had several 2xxx and 7xxx numbered 777-300ER movements plus loads of 787s, some on routings I hadn't seen earlier.

https://www.lloydsloadinglist.com/freight-directory/news/Modal-shift-from-ocean-set-to-buoy-air-freight-for-months/78622.htm

Edited by dagger
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AC has been recalling staff from Off Duty Status and layoff in YYZ  in dribs and drabs for the last few months. All for Cargo. I retired Feb 1 and they were just starting to ramp up the new e-commerce plan and increase freighter ops again.

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7 hours ago, Cargoagent said:

AC has been recalling staff from Off Duty Status and layoff in YYZ  in dribs and drabs for the last few months. All for Cargo. I retired Feb 1 and they were just starting to ramp up the new e-commerce plan and increase freighter ops again.

Congratulations! 😎

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1 hour ago, conehead said:

Congratulations! 😎

Thank You.

34 years and 3 months. 20 years in Cargo, 10 years in Cabins and 4 years in Commissary. 

I would have liked to have finished 35 but with the pandemic, mass layoffs, my overall health and caring for my parents it wasn't fun to go to work anymore. Someone got called back when I left so that is a good thing.

 

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45 minutes ago, Cargoagent said:

Thank You.

34 years and 3 months. 20 years in Cargo, 10 years in Cabins and 4 years in Commissary. 

I would have liked to have finished 35 but with the pandemic, mass layoffs, my overall health and caring for my parents it wasn't fun to go to work anymore. Someone got called back when I left so that is a good thing.

 

It’s good to know someone got called back when you left. I know a few people in Maintenance with over 40 years service... they should bow out and make room for some younger people who are struggling in these times.

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4 hours ago, conehead said:

t’s good to know someone got called back when you left. I know a few people in Maintenance with over 40 years service... they should bow out and make room for some younger people who are struggling in these times.

Basically they should get an actual life...I will never understand why anyone would want to work past 60...unless they have to......perhaps several alimony payments each month 😅.

IMO retirement years should total over 50% of your  working years, if at all possible. Anyone who feels their employer will really miss them, when they pull the pin, is living in a parallel universe.

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8 hours ago, Specs said:

I'm absolutely fascinated by this.

 

Giant Ship Blocking Suez Canal Could Take ‘Days, Even Weeks’ to Free

 

https://www.nytimes.com/2021/03/25/world/middleeast/suez-canal-ship.html?action=click&module=Top Stories&pgtype=Homepage

I have a favourite book that was written in 2009. It is a alt history/scifi story. The author had an uncanny ability to write about things that have since come to pass. In one part a large container ship was taken over by terrorist and used to block the Suez Canal. It was rammed into one bank and then swung around to block the canal. I am waiting to hear that the steering was wrecked on this vessel. 

In case anyone is interested, it is available on Amazon. It is a long read so be advised.

Magestic by Geoff Wolak.

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12 hours ago, Cargoagent said:

I have a favourite book that was written in 2009. It is a alt history/scifi story. The author had an uncanny ability to write about things that have since come to pass. In one part a large container ship was taken over by terrorist and used to block the Suez Canal. It was rammed into one bank and then swung around to block the canal. I am waiting to hear that the steering was wrecked on this vessel. 

In case anyone is interested, it is available on Amazon. It is a long read so be advised.

Magestic by Geoff Wolak.

It was apparently experiencing technical issues before it even entered the canal. That said, if it takes weeks to free it, this will reverberate through the entire supply chain system worldwide. And for air freight, it's only good news. Some freight - okay, not commodities or items too big or heavy for even a nose-loading 747 freighter - will shift to air even with a huge premium because the alternative is a plant or plants shutting down.

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27 minutes ago, dagger said:

It was apparently experiencing technical issues before it even entered the canal. That said, if it takes weeks to free it, this will reverberate through the entire supply chain system worldwide. And for air freight, it's only good news. Some freight - okay, not commodities or items too big or heavy for even a nose-loading 747 freighter - will shift to air even with a huge premium because the alternative is a plant or plants shutting down.

Yes I imagine it will be bad for commodity prices (do supply chain delays) if enough ships have to sail around the "Cape of Good Hope" instead of being able to use the canal. But evidently the route around the cape could be cheaper in terms of $$$ but not time.

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1.1.Cape of Good Hope: The Cape of Good Hope is one of the main competitors to Suez Canal that witnessed increased traffic during the current petroleum market recession and low bunker prices (Eldaly, 2017). A ship may save $235,000 per voyage by diverting around Africa (Ship&Bunker, 2016). Panama Canal and the Arctic Northern Sea Routes are other alternatives, less in priority, that are left for other research projects.

However, the Suez Canal saves, as shown in Table 1, about 42% of sailing distance from the Arab/Persian Gulf region to Europe and almost 30% of steaming distance to USA.

Longer shipping routes may be chosen to avoid the Canal transit relatively ... routes: Suez Canal transit versus the Cape of Good Hope. ... consumption and stresses in sea and port conditions based on many different alternatives of each ... may save $235,000 per voyage by diverting around Africa (Ship&Bunker, 2016).

 

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