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Cargojet Acquires the Remaining 49% Interest in Prince Edward Air Ltd.

July 17, 2009

Cargojet Income Fund  (the “Fund”) (TSX: CJT.UN), Canada’s leading domestic premium overnight air cargo network operator announced today that Cargojet Airways Ltd. (“Cargojet”), a company owned by the Fund, has acquired the remaining 49% interest in Prince Edward Air Ltd. (“PEAL”) for cash consideration of $1.0 million.  Cargojet had previously acquired a 51% interest in PEAL on May 1, 2008. 

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.   The combined regional business operates 21 aircraft in Ontario, Quebec and Atlantic Canada and employs approximately 130 employees.  Annual combined revenues of the regional business are approximately $20.0 million.

“We are pleased to announce the purchase of the remaining 49% interest in PEAL. This transaction is the logical next step in Cargojet’s investment and growth in the regional air cargo business in Canada.  Mr. Bob Bateman has stepped down as president of PEAL, but will remain active with the company as a strategic consultant and assist Cargojet during this transition over the next 12 months.  Cargojet recognizes the unique challenges the regional operation presents and is committed to maintaining a safe, reliable and profitable airline.  We look forward to working closer with the employees and management of PEAL and providing the operational and financial assistance to ensure its success,” said Ajay K. Virmani, President and CEO of Cargojet.   

For further information, please contact:

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