Cargojet Announces Aircraft Fleet Renewal
Mississauga, ON, January 8, 2014 – Cargojet Inc. (TSX: CJT, CJT.A) today announced its aircraft fleet renewal plans.
In 2014, Cargojet is phasing out the operation of its older generation B727-200F freighter aircraft(s) on the domestic overnight network and replacing them with newer generation B757-200 Extended Range Freighter Aircraft(s). Cargojet has taken delivery of two B757-200ER aircraft(s) and another two will be entering the fleet at the end of the second Quarter.
These newer generation aircraft will position us to meet the future growth and reliability requirements of our customers and will continue to provide consistent and reliable time-sensitive overnight air cargo transportation across Canada. This aircraft type is more environmentally friendly and has a significantly lower carbon footprint than the aircraft being replaced. Upgrading the fleet will require a significant capital investment by Cargojet, as the ownership cost of these newer aircraft is far greater than the older generation and currently owned aircraft. While fuel savings will of course by realized, these will be more than offset by the higher capital cost of the aircraft. Once fully implemented, the B757-200ER aircraft (s) will provide approximately twenty-percent (20%) more capacity on major overnight lanes as compared to our present network, providing significant growth opportunities for all customers.
“Cargojet continues to be an industry leader in providing our customers with the highest levels of reliability and service in the domestic overnight air cargo market today,” said Ajay K. Virmani, President and Chief Executive Officer. “This investment positions Cargojet to continue to grow and provide our customers with quality services,” he concluded.
Cargojet is Canada's leading provider of time sensitive overnight air cargo services and operates a network across North America as well as global air charters.
For further information:
Pauline Dhillon
Vice President Marketing, Public & Government Relations
Tel: (905) 501 7373
pdhillon@cargojet.com
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.