HALIFAX
March 15, 2012

HALIFAX
March 15, 2012

Halifax Stanfield International Airport processed 29,263 metric tonnes of cargo in 2011 – up 2.8 per cent over 2010.

This increase was due to several factors. Two of the Airport’s major cargo carriers - FedEx and Cargojet - both upgraded their Halifax based fleet from B727 freighters to B757s offering increased capacity. Additionally, the Airport welcomed the return of Icelandair Cargo in December of 2011, which offers weekly B757 scheduled service from Halifax to Reykjavik, Iceland and on to Liege, Belgium. 

As well, the Airport’s multi-tenant cargo facility was in operation for a full year in 2011, having opened in June 2010. The 40,000 square foot facility, operated by Gateway Facilities ULC, features 7,000 square feet of climate controlled space with direct airside access– ideal for shipping fresh lobster and seafood.

“Our air cargo business is a team effort,” says Jerry Staples, HIAA Vice President, Marketing and Business Development. “We work closely with our carriers, partners and shippers to develop and grow air cargo opportunities at Halifax Stanfield.

Cargo traffic is forecast to increase seven per cent in 2012. “We’re preparing for another year of cargo growth, with the completion of our extended runway by the first Quarter of 2013, which will make Halifax Stanfield even more attractive,” says Staples. “Our six cargo carriers (FedEx, Purolator, Cargojet, Icelandair Cargo, TNT and SkyLink Express) handled over 20,000 metric tonnes while the remaining 9,000 metric tonnes was transported on passenger flights.”

Construction to extend the Airport’s main runway began in the fall of 2011. By lengthening the runway from 8,800 to 10,500 feet, this will allow the airport to handle larger wide-bodied and heavy aircraft. It will also enhance the airport’s position as a key international air cargo and passenger hub. The $28 million project is being jointly funded by Halifax International Airport Authority, the federal government through Transport Canada’s Gateways and Border Crossings Fund, and the Province of Nova Scotia.  

TORONTO
September 1, 2010

Canada's largest freighter operator is divesting itself of its regional operations, just two years after completing their acquisition. On July 15, Cargojet announced that it was selling its 55% stake in the Cargojet Regional Partnership to SkyLink Express for a $3.2 million promissory note secured by aircraft owned by the latter. The transaction gives SkyLink Express full control over the regional operation, which comprises 27 turboprop aircraft serving a network of 33 smaller cities in Ontario, Quebec and Atlantic Canada. Last year, it had about $23 million in revenues and employed more than 130 staff.

The decision to sell off the regional activities marks the abandonment of Cargojet's efforts to integrate these operations with its core business of operating freighter aircraft between Canada's major cities.
 
Cargojet had acquired freighter operator Georgian Express in October 2007, followed by the takeover of Prince Edward Air in Atlantic Canada in February of the following year. Together, the two regional carriers generated about $22 million in annual revenues at the time, and Cargojet management saw promising potential to increase these significantly.

The underlying rationale was the intention to apply Cargojet's business model to the regional freighter market. While the former is characterized by traffic moving between Canada's major business centres for long-term customers with steady allocations, regional flights are often performed exclusively for individual clients, which typically do not fill the aircraft to capacity. By combining the two, Cargojet was aiming to achieve better utilization of the regional fleet.

Due to the acquisition of Prince Edward Air in 2008, Cargojet's regional revenues last year ended up 8% higher than in the previous year. However, average core overnight daily cargo revenue from the regional business in the final quarter of 2009 was down 20.5%. The decline continued in the first quarter of 2010, with a drop of 4.7%.

Commenting on the sale of the regional business to SkyLink Express, Cargojet president and CEO Ajay Virmani called it a drag on the company's resources.

"The sale of our regional air cargo business was a difficult but necessary decision that was made in the best interest of our customers, our employees and our unit-holders," he declared. "Sustaining a profitable regional air cargo business has been especially challenging, as recent economic conditions have resulted in a decline in customer demand and lower yields. The elimination of the drag on our financial and administrative resources will allow Cargojet to continue to focus upon and to seek further profitable growth opportunities in its national and international cargo programs."

Cargojet will record a one-time non-cash loss of approximately $2 million on the sale of its 55% interest in the partnership.

According to one industry executive, who spoke privately, the cost of insurance cover for the regional freighter fleet was apparently a major factor behind the decision.

The acquisition of Cargojet's 55% position in the regional business gives Toronto-based SkyLink Express full control over it. SkyLink had entered the venture in July 2009, when it took a 45% stake in the business, brought in its own customer contracts and leased aircraft to the operation. The new owner will run the regional business under its own brand name. According to SkyLink president Dan Rocheleau, the deal will make his company the largest regional cargo operator in Canada.

TORONTO
July 15, 2010

SkyLink Express is pleased to announce that it owns 100% of Cargojet Regional Partnership after acquiring the remaining 55% interest from its partner, Prince Edward Air Ltd. (PEAL), a subsidiary of Cargojet Income Fund (TSX: CJT.UN).

Dan Rocheleau, President of SkyLink Express, says, "This deal with PEAL will make SkyLink Express the largest regional air cargo operator in Canada." Rocheleau adds, "We have a long history in this business and highly qualified management and operations teams, so we are well-positioned to take SkyLink Express through this growth phase and on to greater heights."

Specializing in time-sensitive and cost effective aircraft charter services, SkyLink Express will now operate 21 aircraft daily to locations throughout Canada and the US.

Surjit Babra, CEO of SkyLink Express and Chairman of SkyLink Group, says, "Fifteen years ago, SkyLink identified the potential of this niche market using feeder aircraft under 18,000 lbs. and leveraging SkyLink's cost-effective structure in hub and spoke operations." Babra adds, "This investment is further evidence that we are committed to the Canadian regional air cargo market and continue to believe there are outstanding opportunities for our company. SkyLink has the proven track record to back it up."

The SkyLink Group, in business since 1979 and headquartered in Toronto, Canada, is a successful group of companies also involved in Wholesale Travel, Aircraft Leasing, Airport Security, Software Development and Airline Representation.

TORONTO
July 15, 2010

TORONTO
July 17, 2009

Cargojet Income Fund (the "Fund") (TSX: CJT.UN), Canada's leading domestic premium overnight air cargo network operator, announced today that it has entered into a partnership with SkyLink Express Inc. ("SL Express") to combine their regional air cargo feeder aircraft network. The new partnership will operate under the trade name "Cargojet Regional" (the "Partnership") and will be owned 55% by Cargojet's subsidiary Prince Edward Air Ltd. ("PEAL") and 45% by SL Express. Consideration for Cargojet's interest in the Partnership includes the transfer of Cargojet's existing regional contracts valued at $3.9 million.

Cargojet launched its own regional business in October 2007 to extend the reach and coverage of its national cargo network. In May 2008, Cargojet acquired a controlling interest in PEAL, a privately owned regional operator of cargo aircraft based in Atlantic Canada. The new partnership between PEAL and SL Express will create a regional business with annual combined revenues of over $26 million. Cargojet Regional will operate twenty-eight aircraft and employ over 160 people primarily in Central and Atlantic Canada.

"This partnership is part of Cargojet's strategic plan to expand its regional air cargo business. This transaction is the logical next step in Cargojet's investment and growth in the regional air cargo business in Canada. Cargojet Regional will give us a stable platform to continue our growth into secondary markets across Canada. We are very excited and enthusiastic about the opportunities that the Cargojet Regional brand will provide for our customers, our employees and our unitholders as we continue to grow this business well into the future," said Ajay Virmani, President and CEO of Cargojet. Cargojet is Canada's leading provider of time sensitive overnight air cargo services. Cargojet operates its network across North America, transporting over 750,000 pounds of time sensitive air cargo each business night, utilizing a fleet of forty-one all cargo aircraft.