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Cargojet Completes Purchase Of Prince Edward Air Ltd.

May 1, 2008

Cargojet Income Fund  (the “Fund”) (TSX: CJT.UN), Canada’s leading domestic premium overnight air cargo network announced today that Cargojet Airways (“Cargojet”), a company owned by the Fund, has acquired a 51% interest in Prince Edward Air Ltd. (“PEAL”), a privately owned regional operator of cargo aircraft based in Eastern Canada.   Consideration for the purchase will include the transfer of Cargojet’s existing regional business and related assets valued at $4.2 million and cash of $1.0 million.  The agreement to purchase also includes a provision for the purchase by Cargojet of the remaining 49% of PEAL within the next three to five years.  The purchase price will be based on a multiple of average cash flow in the two years immediately prior to purchase of the remaining interest.

PEAL is a specialized air cargo operator serving numerous Canadian cities since 1989 and provides dedicated cargo lift to major couriers and transportation companies.  Cargojet launched its own Cargojet Regional brand in October 2007 to extend the reach and coverage of its national air cargo network. It is anticipated that combining this business with PEAL will capitalize on the synergies and expertise of both parties.   The combined business will operate 21 aircraft in Ontario, Quebec and Eastern Canada and employ approximately 130 employees.  Annual combined revenues of the regional businesses are estimated at  $22.0 million.

“We are pleased to announce the completion of our purchase of a 51% interest in PEAL. This acquisition is a significant part of Cargojet’s strategic plan to expand its regional air cargo business in Canada.   Bob Bateman will remain President of the company and be responsible for the day-to-day management of the regional brand.  We look forward to working with Bob and his team to develop and expand the regional air cargo business.  This will allow Cargojet to continue to focus and grow its overnight air cargo network and related fleet expansion plans while maintaining and growing the regional brand”, said Ajay K. Virmani, President and CEO of Cargojet.   

"This combined business will provide an excellent platform for the future growth of the regional air cargo business in Canada and I am very excited about working together with the Cargojet team to take advantage of these great opportunities", added Bob Bateman, President, Prince Edward Air Ltd.

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services.  Cargojet operates its network across North America transporting over 840,000 pounds of time sensitive air cargo each business night, utilizing a fleet of twenty two all cargo aircraft.

For further information, please contact:

P. Dhillon
Vice President Marketing, Public & Government Relations
Tel: (905) 501 7373

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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