Canadian cargo airlines combining forces

MONTREAL, Quebec and MISSISSAUGA, Ontario—Two cargo-handling Canadian airlines are attempting to form a partnership.

Air Canada and Carogjet have signed a letter of intent stating they wish to “explore strategic opportunities in both cargo and airline operations within Canada and in international markets”.

Those opportunities are expected to include global sales and marketing, expanded interline opportunities and enhanced connectivity. According to the companies, the point of the co-operative effort is to reduce operating costs and increase revenues.

The plan calls for both airlines to “work towards providing optimized services to the shipping community on their respective networks”.

“We are looking forward to working with Air Canada towards improving the depth and reach of both companies’ air cargo services, both domestically and internationally, among other strategic opportunities,” said Ajay Virmani, president and chief executive officer of Cargojet.

“We are very pleased to be in discussions with Cargojet to explore opportunities for revenue growth and synergies that will be mutually beneficial for both our companies and customers,” said Lise-Marie Turpin, Air Canada Cargo vice-president. “Developing further our relationship with Cargojet is an exciting opportunity.”

The new working arrangement is still subject to regulatory approval.