Cargojet Inc. (“Cargojet”) (TSX: CJT) announced today that it has entered into a new Air Transportation Services Agreement with Amazon Canada Fulfillment Services, ULC (“Amazon”).
Under the agreement, Cargojet will expand upon its existing commercial relationship with Amazon. As part of this arrangement, Cargojet will operate two Amazon-owned B767-300BDSF aircraft as part of the Amazon Air network on a CMI basis within Canada starting mid-2021. Cargojet expects the agreement to generate additional revenue growth to Cargojet’s earnings and cash flows over time. The agreement has a four-year term with three successive two-year renewal options.
“We are very excited to expand our long-term relationship of providing a portfolio of services which support the rapid growth of e-Commerce in Canada. This new four-year Agreement with renewal options is a testament to our relentless focus on exceeding customer expectations,” said Dr. Ajay Virmani, President and CEO Cargojet.
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 27 Cargo aircraft.