Cargojet Signs New Airline Services Contract with DHL | national company
TORONTO – Cargojet Inc. has signed a new agreement with DHL Network Operations (USA) Inc. to provide air transportation services to DHL’s global network which it says will increase revenue and help diversify its services.
The agreement, which expands the relationship between the two companies, has a term of five years with an option to renew for two additional years. Financial terms were not disclosed.
Under the agreement, Cargojet will provide services to meet DHL’s international requirements for Europe and North, South, Central and Latin America, as well as Asia.
Cargojet uses 12 freighters to meet DHL’s current needs.
DHL intends to add five more B-767 freighters during the 2022-23 period. It also plans to be Cargojet’s first launch customer for the B-777 long-range freighter, which is expected to begin flying in late 2023 or early 2024.
In addition, Cargojet will issue warrants to DHL to acquire up to 9.5% of its outstanding voting shares at a price of $158.92 per share over a period of seven years, the acquisition being linked delivery by DHL of a volume of business of up to 2.3 billion dollars. volume during the same period.
This report from The Canadian Press was first published on March 29, 2022.
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