Interference by US pilots association unwelcome in Canadian bargaining process

TORONTO, May 8, 2021 /CNW/ – Unifor will not tolerate interference in our democratic and pilot lead bargaining process with Cargojet by the self-serving US based Airline Pilots Association Intl. (ALPA) making ill-informed public statements.

“To have the president of ALPA preach from Viginia to our pilots on the bargaining committee about fatigue rules and safety is condescending, arrogant and disrespectful,” said Jerry Dias in a written response to ALPA’s public statement and posted letters to Unifor and Cargojet.

Pilots in cockpit of airplane (CNW Group/Unifor)
Pilots in cockpit of airplane (CNW Group/Unifor)

“Captain Joe DePete knows full well that 130 Canadian pilots stand to lose their jobs, and he is standing by to take their dues if operations move to the US where congress has exempted cargo airline operators from some fatigue rules, giving them a competitive advantage over Canadian operators.”

Unifor Local 7378 pilots are in the process of voting on a tentative agreement, bargained by pilots, for pilots, with no intention of allowing unsafe flight and duty time regulations.

“To suggest that our committee would agree to any exemption not based on safety and fatigue science is another example of an American association trying to interfere with our democratic collective bargaining process,” said Captain Mike Powers, Chairperson of Unifor Local 7378.

“ALPA is today raiding our pilots at Flair Air and this smells like a poorly disguised attempt to raid our pilots by an association that for decades had no interest in smaller operations such as Cargojet or Flair, deemed too small for their corporate model, and now that the pandemic caused mass layoffs, ALPA is hitting new lows. It’s clearly an association and not a union,” said Dias.

Throughout the pandemic, Unifor has led the demand for a national aviation plan, and has held rallies, presented to parliamentary committees and has actively lobbied for a national recovery plan for the aviation industry that includes financial support for workers. Captain DePete has posted just four news releases that even mention Canada, compared to Unifor’s 230 news releases, fighting for Canadian workers impacted by the pandemic.

Unifor represents more than 16,000 members working in the air transportation sector, including pilots, customer service representatives, aircraft groomers, catering staff and air traffic controllers, to name a few. The union continues to push the federal government to act and create a plan to prevent the current crisis from collapsing the industry entirely.

Unifor is Canada’s largest union in the private sector, representing 315,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.

SOURCE Unifor

Bermuda calling

From Airport World – link to source story

Joe Bates 6th May 2021

With its new state-of-the-art terminal, Bermuda’s LF Wade International Airport has never been better equipped to offer passengers a unique and memorable experience, writes Joe Bates.

It may not have had that many visitors yet due to the continued impact of the global COVID-19 pandemic, but the new terminal at Bermuda’s LF Wade International Airport (BDA) has certainly impressed those lucky enough to have used it in its opening few months.

Anyone doubting the ‘wow’ factor it has added only need to look at some of the feedback from passengers and staff on its opening day.

“Really beautiful”, “Fabulous and spacious”, “Absolutely awesome” and “It looks like a world class airport” were just some of the comments given by passengers when the new $400 million terminal opened for business on December 9, 2020.

And airport operator, Bermuda Skyport, is certain that the new complex – built on a brownfield site around 150 yards away from the old terminal – will prove to be a success and introduce new levels of comfort, safety and service to passengers.

Completed on budget, on time and on spec, the new modern 288,000 square foot facility provides improved passenger processing, increased passenger capacity, greater resilience to extreme weather conditions and a host of new passenger friendly facilities such as enhanced specialty retail and F&B outlets and covered passenger jet bridges.

“It is a game changer for us in more ways than one, and we managed to complete its construction and opening during a once in a century pandemic,” comments Aaron Adderley, president of Bermuda Skyport, noting that new terminal was first mentioned in BDA’s 2008 master plan.

“It will make a huge difference to the way we operate now, and in the years to come. It was needed as the old terminal had passed its life expectancy and its location close to the shoreline meant that it was susceptible to severe weather events.”

The latter threat is no longer an issue, confirms Adderley, due the extra resiliency built into the design of the new complex, which included locating it inland around nine feet higher than the old terminal to avoid the risk of being flooded by ocean storm surges during the hurricane season.

“We have the first new passenger terminal in Bermuda for 70 plus years, so to say that it is a milestone for the island would be somewhat of an understatement,” he reminds me.

“In addition to incorporating a sense of resiliency into the building, we wanted to create something that enhanced the overall passenger experience and provided us with a facility that is both functional and flexible in terms of its use, development and ability to accommodate future technologies.”

Wowing the senses

Focusing on the customer experience side of things, he reveals that the airport adopted a “sensorial” approach to the new terminal in a bid to create something unique that would excite passengers.

“We deliberately targeted the senses,” he explains. “By that I mean we focused on the sense of taste, the sense of place, the sense of hearing and sense of smell.”

By sense of place, he admits that BDA did what a number of other airports around the world have done and replicated examples of the local culture, people, surroundings and popular attractions in its terminal building.

In this regards, Adderley notes that little bits of ‘Bermudiana’ have been incorporated into the interior design of the terminal and can be seen most clearly by the models of cahow and long-tailed birds hanging from the ceiling in the Departures Hall and colourful wayfinding Bermuda kites throughout the building.

The sense of being in Bermuda is also reinforced by a number of photo exhibits throughout the terminal showcasing the island’s flora and fauna, beaches and “everyday people”.

“All help display the sense of pride we feel as Bermudans. This is who we are. This is what we look like. The images in particular are very impactful in terms of their size and vibrancy,” enthuses Adderley.

With regards to the ‘sense of taste’, Adderley believes that F&B partner SSP America – in collaboration with local restauranteur Jennifer Turini Ysseldyke and Bermudian entrepreneur Dennie O’Connor – have come up with a winning formula that ensures that diners at any of the terminal’s three restaurants are guaranteed “a very unique, exciting and vibrant food experience”.

Specifically, the terminal’s pre-security Whistle & Rum Grill with its outdoor terrace, views of the Ocean inlet, water feature and nearby putting green is designed to offer a ‘destination experience’ to both passengers and locals as well as providing a venue to host events and outdoor receptions post COVID-19.

It is complemented by the Rock & Barrel Gastro Bar (US Departures Hold Room); and The Heron & the Sea Public House (International Departures Hold Room) both of which have outdoor dining options that Adderley believes offer a modern, more sophisticated take on BDA’s former outside patios from which generations of Bermudans waved goodbye to their friends and loved ones.

When it comes to ‘sense of smell’, Adderley notes that the airport worked with The Bermuda Perfumery to devise a scent for BDA that visitors would immediately recognise on entering the terminal building and know that their travel adventure is about to begin.

Although it hasn’t been unveiled just yet, he says that the day is close and, for now, passengers can enjoy the sight, sounds and smells of the bespoke retail offerings in BDA’s Somers Isles Trading Company and Love Bermuda shops, which include the products from about 30 different artisans ranging from locally distilled gin, bath and facial products to clothing, candles and scents.

US Pre-Clearance

The terminal is also said to offer energy efficiencies, advanced security and improved US Pre-Clearance facilities for US bound passengers – a key upgrade considering that 75% to 80% of BDA’s annual visitors arrive from and depart to the United States.

Pre-Clearance, of course, allows all US bound passengers to clear US Customs and Immigration in Bermuda, instead of on arrival where longer lines often exist.

According to Adderley, this service, present in Bermuda for nearly 50 years, is extremely beneficial to passengers and provides the island with a competitive advantage when seeking new air services to and from the United States.

“The new Pre-Clearance facility was necessary to ensure that we continued to meet the US’s new security requirements, so we were happy to do it, despite the expense involved, because of the advantage it gives us,” he explains.

Although a UK territory, Bermuda’s close proximity to the US – it lies just 643 miles off of the North Carolina coast – means that it has very close ties to the United States. An estimated 8,500 Americans live in Bermuda, for example, and the bulk of the island’s imports and visitors come from the US.

In addition, many Americans have businesses in Bermuda, which in addition to its higher end tourism appeal, is one of the world’s top re-insurance and financial services centres.

Flexibility to adopt future technologies

As well as the advanced technology utilised by US Customs and Border Protection (CBP) in the US concourse at BDA, the new terminal is equipped with a range of state-of-the-art IT systems designed to make passengers’ journeys fast and efficient.

These include self-service check-in kiosks, e-gates, baggage tracking and Computed Topography (CT) X-ray screening technology at security, making BDA more than well equipped for passenger growth when global aviation begins its recovery from the pandemic.

Adderley is also confident that Bermuda Skyport’s decision to build IT flexibility into the terminal’s design means that it is well placed to take onboard the technology of tomorrow, when it comes.

“We believe that the real test of new infrastructure is ensuring that it is not only capable of accommodating the technology that exists today, but also the technology that will come about tomorrow,” he says.

“I believe our technology focus ensures that the new terminal meets this criteria, in effect, future proofing it. This makes us excited about the future and the airport’s growth outlook.”

Build and grow

Agreeing to finance the design and construction of the new terminal was pivotal to the Bermudan government’s 2017 decision to award Bermuda Skyport Corporation Limited the 30-year concession to operate and develop LF Wade International Airport.

For the special-purpose Bermudan company is wholly-owned by Canada’s Aecon Concessions, which had the financial muscle, airport experience and construction expertise to make the dream of a new terminal become reality.

“With the Canadian Commercial Corporation (CCC) and prime contractors, Aecon, the airport was able to find a turnkey solution, bespoke in nature, that afforded Bermuda the opportunity to do what many small airports in the world our size have found difficult to do – namely, to successfully attract private sector investment to finance a major capital redevelopment,” notes Adderley.

“Once again, Bermuda has blazed a trail in setting new standards internationally for others to follow.

“Whilst the project’s business model has proven innovative and comparable with international benchmarks, its economic impacts have proven to be widespread. Nearly 400 local businesses have been contracted since the start of the project and nearly $400 million has been invested in the local economy.

“Over half of the 1.6 million man-hours spent constructing this world class facility were by Bermuda’s own men and women. We should be proud of their quality craftmanship.”

Steve Nackan, president of Aecon Concessions – the project’s developer and financier – is as equally proud of the new terminal as Adderley.

He says: “The genesis of today’s success story lies in the deep-rooted ties between Canada and Bermuda.

“Built upon the kinship of our two countries, the Canadian Commercial Corporation (CCC) and the Government of Bermuda partnered with us to develop this much needed new facility.

“CCC – supported by the extended Government of Canada family – have been a true and valued partner – and their diplomatic approach has been a hallmark of the project’s success.

“Together, we mobilised nearly $400 million of private investment – drawn to the long-term promise of Bermuda – and the opportunity to play a part in the revitalisation of Bermuda’s economy.

“And through innovative thinking – we built and proved the model for how small airports can nevertheless achieve world class outcomes.”

Interestingly, BDA’s new terminal is the second public-private partnership (PPP) initiative in Bermuda after the method was used to finance the construction of a major new hospital on the island.

Traffic and route network

Infrastructure wise, the airport has never been better equipped for growth, and Adderley is in no doubt that passengers and BDA’s airlines will enjoy the benefits of the new terminal when COVID-19 is finally beaten, and air travel is back on the agenda.

As you might have expected, 2020 was particularly tough on BDA, which was forced to close for over three months from March 20 to July 1 due to the devastating impact of COVID-19.

The seasonality of its traffic demand didn’t help, with the darkest days of the pandemic overlapping with the start of the traditional May to September peak season for tourism in Bermuda, when BDA typically handles around 20 flights a day.

As a result, BDA’s passenger numbers fell by 80% in 2020 from 2019’s 884,000 to just over 180,000, and Adderley expects 2021 to be another difficult one for LF Wade International Airport, with the most optimistic scenario seeing the gateway reach around 45% to 50% of 2019’s traffic levels before a stronger recovery from 2022 onwards following the global vaccine roll out.

The top three airlines serving BDA in terms of services and market share are American (30%), Delta (25%), and JetBlue (18%).

With the US accounting for up to 80% of all passengers, it shouldn’t be much of a surprise to learn that New York and Boston are BDA’s most popular routes, followed by London in the UK.

Charlotte, Miami, Philadelphia and Atlanta are also popular destinations served from BDA along with Toronto in Canada, which is served by both Air Canada and WestJet.

British Airways operates the airport’s only non-stop long-haul service to London, and Adderley is hopeful that the recent switch of the route from Gatwick to Heathrow will benefit BDA as the decision makes it much easier for international travellers from Europe and Asia to connect to Bermuda.

One of the options currently being considered by the island to boost tourism numbers is extending the traditional May to September tourism season into October, as the weather in Bermuda is still mild, and the Bermudan travel industry believes that a pent up demand to travel post pandemic will prove incentive enough to make it worth the gamble.

With only 3,000 hotel beds across the whole island though – less than at one of the big hotel resorts on the Las Vegas strip – there is a clear limit on how big Bermuda can grow as a tourist and business destination.

However, Adderley believes that there is clear room for growth once the pandemic is over because of the appeal of Bermuda and the fact that Bermudans also love to travel – traditionally taking an average of two to three trips abroad each year.

“You have to remember that although Bermuda might be paradise, it is only 22 square miles, and we tend to get rock fever if we don’t take a trip once in a while,” jokes Adderley.

Bermuda’s large expat community is also another reason for the airport to be optimistic that air travel will be high on the agenda again soon. Indeed, the large number of Canadians working in Bermuda was the reason why WestJet launched services to Toronto, and Adderley believes that this could easily be replicated by other airlines in the future.

Prior to the pandemic, the addition of another non-stop service to Europe was high on the wish list of BDA’s route development team, and Adderley assures that it will be again when the timing is right.

He notes: “For now, we will have to settle for people connecting through London, and I am hopeful that BA’s switch to Heathrow and a new publicity campaign by the Bermuda Tourism Authority promoting how easy it now is for Europeans to get to Bermuda will boost passenger numbers.

“But, in the longer-term, we would like another non-stop service to Europe, and we hope to boost our short-haul network by growing our low-cost presence in the US and Canada.”

Next up for BDA

With the airport’s passenger handling facilities now among the best in the region, BDA is set to turn its attentions to the cargo side of the business, which Adderley admits are badly in need of a revamp.

Bermuda Skyport actually agreed to refurbish BDA’s cargo facilities as part of its concession agreement, and despite today’s far from favourable economic conditions, work is expected to begin on the project later this year.

The upgrade will include an expansion to the existing Customs administration facilities and the introduction of new refrigeration capacity for perishable goods.

The bulk of the 6,000 tonnes of cargo handled at BDA each year arrives on a Cargojet B757F aircraft which operates between the US and Bermuda five days a week on behalf of DHL, UPS, FedEx and a number of local couriers.

With a brand new passenger terminal and enhanced cargo facilities on the way, nobody can deny that LF Wade International Airport is looking towards the future with optimism and will be in a great position to develop and grow when the pandemic is finally over.

Cargojet continues strong momentum as it reports Q1, 2021

MISSISSAUGA, ON, May 3, 2021 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the first quarter ended March 31, 2021.

Total Revenues for the quarter were $160.3 million compared to first quarter 2020 Revenues of $123.0 million. Gross Margin for the quarter was $45.3 million compared to first quarter 2020 Gross Margin of $32.2 million. Adjusted EBITDA and Adjusted EBITDAR for the quarter were $64.2 million compared to the first quarter 2020 Adjusted EBITDA and Adjusted EBITDAR of $44.6 million.

Adjusted Free Cash Flow of $35.2 million for the three-month period ended March 31, 2021 compared to $29.8 million for the same period in 2020 increased $5.4 million or 18.1%.

“With a fundamental shift in consumer shopping habits in several key categories, Cargojet has spent the last few quarters laying the foundation to capture the next phase of e-Commerce growth. We strengthened our balance sheet, invested in fleet expansion, broadened our portfolio of services and are investing in attracting and retaining top talent.” said Dr. Ajay Virmani, President  & CEO.

“What was previously a consumer led shift to digital is now rapidly becoming a merchant led shift, accelerating the move to e-Commerce even further. Our highly focused and professional team continues to work closely with our customers to support their changing needs while maintaining the best on-time performance in the industry” noted Dr.Virmani.

“With shifting supply chains, triggered by a significant reset of the international passenger routes, we also see opportunities to expand and diversify on select international lanes. We also continue to focus on growing our ACMI and Charter business as cargo capacity remains in high demand and we are constantly adapting to maintain our leadership position”. concluded Dr. Virmani.

About 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 28 Cargo aircraft.

John Kim Retires as CFO of Cargojet

MISSISSAUGA, ON, April 7, 2021 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today that its Chief Financial Officer, John Kim, will retire at the end of May 31, 2021.

Although Mr. Kim has announced his retirement, he will continue to operate as a consultant to the Corporation with focus on Capital Markets and Investor Relations and to ensure a smooth transition. The Corporation named Mr. Sanjeev Maini, its current Vice President of Finance as the interim CFO while it conducts a formal search process. Mr. Maini has been with the company since inception and prior to being promoted as Vice President, Finance served as the Controller of the Corporation and is well equipped to support Cargojet’s ambitious growth strategy.

“We wish John the very best in his future endeavors and sincerely thank him for his many contributions during his tenure at Cargojet,” said Dr. Ajay Virmani, President and CEO of Cargojet. “John was instrumental in helping the Corporation navigate during its early years of growth and successfully delivered several projects”.

“I am fortunate to have been part of such a talented team, and want to thank the Board and the investment community for their support all through my tenure. Although I am retiring from my active role, I am committed to ensuring a smooth transition and will remain fully engaged on capital markets and investor relation areas during this process.” said John Kim.

Cargojet is working through a formal search process to identify a permanent replacement and expects to conclude it by the second quarter.

About 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 28 Cargo aircraft.

Cargojet Expands Relationship with Amazon

MISSISSAUGA, ON, April 1, 2021 /CNW/ – 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.

Cargojet Announces Voting Results From Annual Meeting of Shareholders

MISSISSAUGA, ON, March 30, 2021 /CNW/ – Cargojet Inc. (TSX: CJT) (“Cargojet” or the “Company”) announced the voting results from its annual meeting of shareholders held today virtually via live audio webcast.

Shareholders voted in favour of all items of business, including the election of each of the director nominees as follows:

NomineeVotes ForVotes Withheld
(a)  Ajay Virmani
(b)  Arlene Dickinson
(c)  Alan Gershenhorn
(d)  Paul Godfrey
(e)  John Webster
10,614,893 (97.45%)
10,775,954 (98.93%)
10,554,844 (96.90%)
9,358,335 (85.92%)
9,645,095 (88.55%)
277,635 (2.55%)
116,574 (1.07%)
337,684 (3.10%)
1,534,193 (14.08%)
1,247,433 (11.45%)

Final voting results on all matters voted on at the meeting will be filed on SEDAR at www.sedar.com.

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 28 cargo aircraft.

Cargojet Announces New Director Appointment

Substitute Nominee to Stand for Election to Board of Directors at Upcoming Annual Shareholders Meeting

MISSISSAUGA, ON, March 17, 2021 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation“) (TSX: CJT) is pleased to announce that Mr. Alan Gershenhorn has been appointed to its board of directors (the “Board“) effective today and will stand for election at the Corporation’s Annual Meeting of Shareholders scheduled to be held on Tuesday, March 30, 2021 (the “Meeting”).

Mr. James R. Crane has resigned from the Board in line with best corporate governance practices in order to pursue a business venture in the US with whom Cargojet has a significantly expanding commercial relationship. The Board thanks Mr. Crane for his invaluable leadership and contribution to the Corporation. As lead director, Mr. Paul Godfrey will act as interim independent chair of the Board.

“During his three years as Chair, Jim’s leadership and advise has guided the Board and Cargojet to achieve tremendous growth and success while significantly strengthening its governance practices,” said Dr. Ajay Virmani, President and Chief Executive Officer. “We sincerely thank Jim for his time, advise and contribution to Cargojet.”

“I am also thrilled to be welcoming Alan Gershenhorn to Cargojet’s Board. Alan’s industry knowledge, strategic insights, and global perspective will serve Cargojet well,” noted Dr. Virmani.

Mr. Gershenhorn brings over 40 years of experience in U.S. and international enterprise logistics to the Board. During his 39-year tenure at United Parcel Service, Inc. (“UPS“), the world’s largest package delivery company, Mr. Gershenhorn served in several significant leadership positions, including most recently as Executive Vice President and Chief Commercial Officer through June 2018. At UPS, Mr. Gershenhorn directed strategy, mergers and acquisitions, marketing, sales, public affairs, communications, and key growth strategies globally across the organization. Mr. Gershenhorn is currently a Principal of Horn Strategy Partners, LLC, which provides strategy and business development advisory services to technology and logistics businesses. A more comprehensive biography of Mr. Gershenhorn can be found below.

Mr. Gershenhorn is not considered independent under applicable securities laws. The Board remains comprised of a majority of independent directors and all committees of the Board remain comprised entirely of independent directors.

Important Shareholder Information Concerning the Meeting

Cargojet is relying on the discretionary authority granted to management in the Management Information Circular of the Corporation dated March 3, 2021 (the “Circular“) to substitute Mr. Gershenhorn as a director nominee in place of Mr. Crane.

Management of the Corporation recommends that the shareholders vote FOR the election of Mr. Gershenhorn as a director of the Corporation at the Meeting.

Shareholders are reminded that due to the unprecedented public health impact of the global COVID-19 pandemic, Cargojet will hold the Meeting in a virtual only format, which will be conducted via live audio webcast. Shareholders will not be able to physically attend the Meeting. Please read the instructions in the Circular regarding how to vote at, or attend, the Meeting and how to appoint a third party proxyholder. Please note that shareholders attending the Meeting must be connected to the internet at all times during the Meeting in order to be able to vote when balloting commences. 

To vote for the election of Mr. Gershenhorn as a director of the Corporation at the Meeting, shareholders are directed to treat the election boxes for Mr. Crane on the form of proxy or voting instruction form, as applicable, as election boxes for Mr. Gershenhorn. For greater certainty, all votes cast in support of or withheld from Mr. Crane shall be treated as votes cast in support of or withheld from Mr. Gershenhorn.

Registered shareholders who have already executed and submitted the form of proxy enclosed in the Circular who wish to change their vote may do so by:

  • completing a proxy form that is dated later than the proxy form being revoked and mailing or faxing it to Computershare Investor Services Inc., the Corporation’s transfer agent, so that it is received before 1:00 p.m. (Toronto time) on March 26, 2021;
  • sending a revocation notice in writing to the Corporate Secretary of the Corporation at its registered office so that it is received at any time up to and including the last business day before the date of the Meeting. The notice can be provided by the shareholder or the authorized attorney of such shareholder;
  • requesting from the chair of the Meeting in writing that your proxy be revoked; or
  • voting by online ballot on the matters put forth at the Meeting after using the 15-digit Control Number provided to registered shareholders to login to the Meeting and accepting the terms and conditions. Voting by online ballot at the Meeting will revoke any and all previously submitted proxies for the MeetingIf a registered shareholder does not vote by online ballot at the Meeting, any previously submitted proxies will not be revoked and will continue to be counted by our transfer agent in tabulating the vote with respect to the matters put forth at the Meeting.

A non-registered shareholder (being a shareholder who holds their shares through a broker, investment dealer, bank, trust company, custodian, nominee or other intermediary) may revoke a voting instruction or proxy authorization form given to an intermediary at any time by written notice to the intermediary, except that an intermediary may not act on a revocation of a voting instruction or proxy authorization form that is not received by the intermediary in sufficient time prior to the Meeting. Non-registered shareholders who have not duly appointed themselves as proxyholders will be able to attend the Meeting as guests, but will not be able to vote at the Meeting. If you are a non-registered shareholder and wish to vote at the Meeting, you have to appoint yourself as proxyholder. Please see the Circular for further instructions.

Shareholders who have already executed and submitted the form of proxy enclosed in the Circular and who DO NOT wish to change their vote need take NO FURTHER ACTION.

The Circular has been mailed to shareholders and is available for viewing on SEDAR. Except as described above, the Circular remains unchanged from the version that was mailed to the shareholders of the Corporation and previously filed on SEDAR.

Additional Biographical Information Concerning Alan Gershenhorn

Mr. Gershenhorn brings over 40 years of experience in U.S. and international enterprise logistics to the Board. During his 39-year tenure at UPS, Mr. Gershenhorn served in several significant leadership positions, including most recently as Executive Vice President and Chief Commercial Officer through June 2018. At UPS, Mr. Gershenhorn directed strategy, mergers and acquisitions, marketing, sales, public affairs, communications, and key growth strategies globally across the organization. Mr. Gershenhorn is currently a Principal of Horn Strategy Partners, LLC, which provides strategy and business development advisory services to technology and logistics businesses. In addition to Mr. Gershenhorn’s role as Executive Vice President and Chief Commercial Officer of UPS, he served as a member of the UPS Management Committee, which directs global strategy and day-to-day operations, for over a decade, and led numerous transformational programs during his tenure. Mr. Gershenhorn previously served in other significant UPS leadership positions with both global and regional responsibilities including Chief Sales and Marketing Officer, Senior Vice President, and President UPS International; President UPS Supply Chain Solutions Global Transportation and Shared Services; President Supply Chain Solutions Europe, Asia, Middle East, and Africa; and President UPS Canada. In addition to his corporate responsibilities at UPS, Mr. Gershenhorn served as a Trustee of the UPS Foundation, a charitable organization which promotes environmental sustainability, volunteerism, community safety, and equity and inclusion, and was a delegate of the World Business Council for Sustainable Development. Mr. Gershenhorn serves on the boards of Beacon Roofing Supply, Inc., the largest publicly traded distributor of roofing materials and complementary building products in the United States and Canada, and Transportation Insight, Worldwide Express, and Ascend Transport Group, which are privately held enterprise logistics companies, and acts in an advisory role to 8VC, a venture capital firm. Mr. Gershenhorn is also currently the Chairman and Chief Executive Officer of Logistics Innovation Technologies Corp., a special purpose acquisition company focusing on opportunities in the global logistics industry. Logistics Innovation Technologies has recently filed a registration statement with the U.S. Securities and Exchange Commission but there is currently no public market for its securities nor does it have any operating business. Mr. Gershenhorn holds a degree in finance from the University of Houston. He is 62 years of age and a resident of Alpharetta, Georgia, USA.

About 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.

Cargojet Increases Quarterly Dividend by 11.1%

MISSISSAUGA, ON, March 4, 2021 /CNW/ – The Board of Directors of Cargojet Inc. has declared a cash dividend of $0.2600 per common voting share and variable voting share for the period from January 1, 2021 to March 31, 2021, an increase of $0.0260 or 11.1% per share from the previous quarter.

“In recognition of our 2020 results and our strengthened financial position, our Board has voted to increase the dividend” said Dr. Ajay Virmani, President and Chief Executive Officer. “We remain committed to prudently manage our cashflows and will continue to strike the right balance between investing in growth and returning cash to shareholders”, he added.

Cargojet has a long history of providing value to its shareholders through regular dividend increases. This also marks the 16th consecutive year Cargojet has paid dividends or cash distributions.

The record date for determining shareholders of the Corporation entitled to receive payment of the dividend of the Corporation shall be December 19, 2021 and the payment date for such dividend shall be on or before April 5, 2021. These dividends will be eligible dividends within the meaning of the Income Tax Act (Canada).

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 28 cargo aircraft.

Cargojet Ends the Year with a Strong Finish in the Fourth Quarter

MISSISSAUGA, ON, March 1, 2021 /CNW/ -Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today financial results for the fourth quarter and year ended December 31, 2020.

Total Revenues for the quarter were $187.1 million compared to fourth quarter 2019 Revenues of $139.7 million. Gross Margin for the quarter was $69.3 million compared to fourth quarter 2019 Gross Margin of $41.6 million. Adjusted EBITDA and Adjusted EBITDAR for the quarter were $81.9 million compared to the fourth quarter 2019 Adjusted EBITDA and Adjusted EBITDAR of $47.2 million.

2020 was a transformational year and the key highlights include:

  1. Total Revenues for the year were $668.5 million compared $486.6 million in 2019.
  2. Highly diversified revenue growth with each line of business posting record gains vs. prior year:
    1. Domestic overnight accounted for 45% of revenues;
    2. ACMI accounting for 20% of revenues;
    3. All-in-Charters accounting for 18% of revenues
  3. Gross Margin for the year was $250.5 million compared to $119.2 million in 2019.
  4. Adjusted EBITDA and Adjusted EBITDAR for the year were $291.4 million compared to $156.0 million and $156.8 million respectively for 2019.
  5. Adjusted Free cash flow for the year $196.8 million.
  6. Available liquidity of $525 million from Cargojet’s committed 5-year revolving $600 million credit facility. 100% of the facility is available at March 1, 2021.
  7. Reduction in net-debt of $63 million.
  8. Overall leverage at 2.0X Adjusted EBITDAR.
  9. Fleet size increased to 28 all-cargo aircrafts.
  10. Operated a record 52,225 flight block hours in 2020 vs.35,704 in 2019 an increase of 46.3%.

“2020 reminded us of the old saying that adversity builds character. From the start of the pandemic, to our business being declared an essential service, to building unprecedented safety protocols to keep our employees safe while keeping the nation’s supply chains moving, Cargojet demonstrated unparalleled resilience.” said Dr. Ajay Virmani, President & CEO. “Each one of our team members understood that with major parts of our economy under lock-down, Cargojet must rise to the challenge of meeting unprecedented demand in e-commerce volumes that our customers were expecting us to fly.” Commented Dr. Virmani.

“We were truly humbled by the trust and faith shown by our customers in Cargojet especially during one of the most challenging times in our history” further noted Dr.Virmani.

“As the economy slowly re-opens, we expect B2B e-commerce to return back to pre-pandemic levels. At the same time, with a strong customer base and a healthy balance sheet, we are now embarking on the next phase of our growth by capturing international cargo opportunities. The disruption caused by vastly reduced passenger airline belly capacity has created new opportunities in international cargo that we are well positioned to go after.” concluded Dr. Virmani.

About 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 28 Cargo aircraft.

Cargojet Announces Plans for Fleet and Route Expansion

MISSISSAUGA, ON, Feb, 10, 2021 /CNW/ – Cargojet Inc. (“Cargojet” or the “Corporation”) (TSX: CJT) announced today a comprehensive plan for its fleet and route expansion to meet domestic and international growth opportunities starting 2021 and beyond.

Having successfully raised $365 million, earlier this month, through an equity raise to pay off debt and acquire new aircraft, Cargojet is rapidly moving forward to execute on its growth strategy to capture additional e-Commerce volumes and international air-freight opportunities through an expanded fleet.

“Fast changing global supply chains and e-commerce trends present a unique opportunity for Cargojet to substantially grow its international business from an opportunistic add-on to a long-term, sustainable growth driver” said Dr. Ajay Virmani, President and CEO. “Having successfully grown our domestic network with a solid market-share and diversifying into ACMI and Charter Services, building a new growth pillar through international business is a natural next step for us”.

Cargojet’s fleet expansion will consist of:

  1. Five Boeing 767 freighters, announced earlier, will begin arriving in 2021 with the first freighter arriving in Q3 of this year with one additional freighter arriving every quarter thereafter. Two of these aircraft will be deployed within its domestic network to meet projected e-Commerce growth and add stand-by capacity while the remaining three freighters will be used for international routes to select strategic destinations to capture emerging growth opportunities beginning Q4, 2021.
  2. Two Boeing 777 freighters will be arriving in 2023 with Cargojet having the option to add two more B777s in 2024. The first two of these freighters will be deployed for long haul Asian routes and Emerging South Asian markets strategically integrated with Cargojet’s domestic network and in addition, they will serve and connect seamlessly with select European and South-Central and North American cities.
  3. Cargojet expects all of its fleet to have fully completed its major regular and heavy maintenance by the end of Q3, 2021. This will enable Cargojet to begin international service to select cities in Europe and South-Central and North America starting Q4, 2021 utilizing its existing fleet and add capacity as new freighters come on-line.

With this expanded fleet, Cargojet will be better positioned to meet the growth expectations of its customers and build on its strong domestic network covering 15 major cities everyday while selectively adding International destinations that will strategically position Cargojet to service fast growing domestic and cross-border e-Commerce and urgent-cargo opportunities. In addition, Cargojet will continue to explore and focus on additional growth opportunities in the vast US market.