Amazon expands use of Cargojet services

by Inside Logistics Online Staff

Amazon Canada Fulfillment Services has expanded its relationship with Cargojet.

Under a new Air Transportation Services Agreement Cargojet will operate two Amazon-owned B767-300BDSF aircraft as part of the Amazon Air network on a crew, maintenance, and insurance (CMI) basis within Canada starting mid-2021.

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,” said Ajay Virmani, president and CEO Cargojet.

In August 2019 the two companies signed a deal with in which the online retailer was to acquire a stake in Cargojet. Under the agreement, Cargojet will issue warrants to Amazon for variable voting shares that will vest based on commercial milestones related to Amazon’s business with Cargojet.

Cargojet provides dedicated aircraft, crew, maintenance, and insurance (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.