back to 2006 Press Releases

Air India Cargo & Cargojet Announce Strategic Alliance in Canada

July 27, 2006

Cargojet Income Fund (the "Fund") (TSX: CJT.UN) – announced today Air India Cargo and Cargojet are entering into a strategic marketing and operational alliance for the Canadian market, effective August 1, 2006.

Through this alliance Cargojet will provide sales, marketing and operational support to Air India Cargo in Western and Atlantic Canada. Cargojet will receive cargo sales, marketing and interline support from Air India Cargo who currently serve over 44 destinations in more than 23 countries.

All Air India Cargo originating from, or destined to Western and Atlantic Canada will connect with Cargojet’s premium domestic overnight service flights. This partnership will enable both carriers to share and benefit from one other’s expertise in the marketplace and extend their global networks.

Both organizations and their customers will now receive seamless air cargo service from anywhere in the world to all destinations into and out of Canada.

“Both companies will benefit mutually, as Cargojet can now assist Air India Cargo in servicing the complete Canadian marketplace. Cargojet and its customers will also benefit with the expertise Air India Cargo has developed over the years in terms of sales and marketing, handling and information technology,”
said Ajay Virmani, President and CEO of Cargojet.

“Air India is pleased to enter a Strategic Alliance with Cargojet in Canada, as this will enhance the movement of cargo between Canada and India. With Air India’s vast domestic network within India, complimented by Cargojet’s strong presence in Canada serving 13 cities, this arrangement will ease the flow of cargo to interior points in both countries,” says Mr. R.B. Chopra, Manager Canada for Air India.

With a buoyant Indian economy coupled with increased trade Ex India to all countries including Canada, substantial growth in cargo movement is anticipated, on this route.

The tie up between the two airlines will see promotion of cargo to Europe over Birmingham, as well as, to destinations beyond India on the carriers. Air India presently operates five direct flights a week from Toronto to New Delhi, via Birmingham and Amritsar.

Cargojet is Canada's leading provider of time sensitive overnight air cargo service. Cargojet operates its network from coast to coast transporting over 500,000 pounds (226.8 tonnes) of volumetric time sensitive air cargo to thirteen major cities in Canada each business night.

For additional information regarding Air India Cargo please contact Mr. Ram Kolipakam at rkoipakam@airindiacanada.ca

For additional information regarding Cargojet please contact Pauline Dhillon at
pdhillon@cargojet.com.