Canada's Cargojet sells SkyLink Express stake to minority partner

CANADA's leading domestic premium overnight air cargo network operator, has announced that it has sold its 55 per cent interest in the Cargojet regional partnership to SkyLink Express Inc for a C$3.2 million (US$3.02 million) promissory by aircraft owned by SkyLink Express.

SkyLink Express previously held the other 45 per cent in the partnership and will operate the regional business under its own trade name, Skylink Express.

As a result, Cargojet will record a one-time non-cash loss of C$2 million on the sale of its 55 per cent interest in the partnership.

"The sale of our regional air cargo business was a difficult but necessary decision that was made in the best interests of our customers, our employees and our unitholders," said Cargoject CEO Ajay Virmani.

"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 profitable growth in its national and international air cargo programmes," Mr Virmani said.

Cargojet claims to be 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, deploying thirteen B727, B757 and B767 all-cargo aircraft.
(Source:www.schednet.com)