Cargojet (“CJT”) announced today the early renewal and extension of the Air Cargo Services Agreement with two major domestic customers. The agreements will run for a three-year term and contain two (2) one year renewal options. The original agreements were due for renewal in 2021 and in July 2022. This is another example of customers continuing to secure long-term capacity on Cargojet’s air cargo network considering structural shifts in the nature of supply chains which are leading to significant growth in demand for time-sensitive air cargo services across Canada.
Cargojet will continue to be the exclusive provider of the overnight air cargo services in Canada for these customers. The total revenues represented by these contract renewals are estimated over $150 million during the term of the new agreements, including the extension options.
“Cargojet is extremely pleased to have been successful in extending the exclusive domestic air cargo service agreements with two strong Canadian logistics providers. The confidence that our customers place in Cargojet is a testament to the high level of reliability and cost-effective air cargo services that we have consistently provided over the past twenty-years”, said Dr. Ajay Virmani President and CEO of Cargojet. “We will continue to work closely with all of our customers to provide the most flexible; the most reliable and the most scalable air cargo network in Canada”, concluded Mr. Virmani.