Canada's Cargojet buys all Prince Edward Air for US$898,109

CANADA's Cargojet Income Fund has announced plans to expand its regional cargo business through a partnership with SkyLink Express Inc, reports The Canadian Press news agency.

The fund said its recently acquired subsidiary Prince Edward Air Ltd will own 55 per cent of the partnership and Toronto-based SkyLink Express would own the remaining 45 per cent.

The fund will transfer C$3.9 million (US$3.5 million) worth of existing contracts to the partnership, which will operate as Cargojet Regional.

Cargojet bought 51 per cent of Prince Edward Air on May 1 and announced it would buy 49 per cent stake in the cargo carrier for C$1 million.

SkyLink Express, originally called QuikAire Cargo, was founded in 1994 and changed its name two years later after forming a partnership with Skylink Aviation Inc, a charter operator also based in Toronto.

Cargojet Regional will bring in more than C$26 million in revenue, operate 28 aircraft and employ more than 160 people mostly in central and eastern Canada, the fund said Friday.

"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," said Ajay Virmani, president and CEO of Cargojet.

(Source: www.schednet.com)