Cargojet Airways (W8, Hamilton, ON) has entered into a new long-term strategic agreement with DHL Express's US-based affiliate DHL Network Operations for a term of five years with a renewal option for an additional two years, to provide air cargo uplift for DHL's global network.
To strengthen their long-term strategic relationship, Cargojet will also issue warrants to DHL to acquire up to 9.5% of Cargojet's outstanding voting shares (on a non-diluted basis) at a weighted price of CAD158.92 Canadian dollars (USD126.82) per share over a period of seven years, with vesting tied to DHL delivering up to CAD2.3 billion (USD1.84 billion) in business volume during the same term.
In turn, Cargojet will provide DHL with ACMI, CMI, charter, and aircraft dry-lease services for its Europe and North, South, Central and Latin America, as well as Asia needs. And in addition to the 12 freighters Cargojet operates for DHL at present, the German logistics giant intends to add five more B767 freighters during 2022-23 to meet its anticipated requirements. DHL also plans to be the launch customer for Cargojet's B777 Mammoth Freighter initiative which is expected to debut in late 2023 or early 2024.
"Cargojet is an important aviation partner of DHL in North America and we see this expansion of our relationship further strengthening intra-regional and intercontinental links to and from this region," said Mike Parra, CEO, DHL Express Americas. "Its versatile cargo fleet and high on-time reliability positions us well to further capitalize on the dynamically growing e-commerce market, in particular. This step builds on the significant investments we have made in DHL's aviation capacity and capabilities over the last two years in the Americas."
Cargojet's international and ACMI growth will be led and managed by its international team of specialists while its current core team will continue to focus on its existing and growing domestic network.
According to the ch-aviation fleets module, Cargojet operates nine B757-200(PCF)s and twenty B767-300Fs (three -200(ERBDSFs), four -300(ERBCF)s, and twelve -300(ERBDSF)s). For its part, DHL's other North American capacity providers include: 21 Air, ABX Air, Aeronaves TSM, Amerijet International, Atlas Air, DHL Aero Expreso, iAero Airways, Kalitta Air, Kalitta Charters II, Mas Air, Mesa Airlines, and Polar Air Cargo.
