Business
Cargojet Announces Strategic Agreement with Amazon to Provide Air-Transportation Services
Cargojet Announces Strategic Agreement with Amazon to Provide Air-Transportation Services ...
About this update from Cargojet Inc.
[{"type":"text","content":"\n\n\n\nCargojet Announces Strategic Agreement with Amazon to Provide Air-Transportation Services\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nMISSISSAUGA, ON, Aug. 23, 2019\n\n\n\nMISSISSAUGA, ON, Aug. 23, 2019 /CNW/ - Cargojet Inc. (\"Cargojet\" or the \"Corporation\") (TSX:CJT) announced today that it has entered into a new strategic agreement with Amazon.com NV Investment Holdings LLC, an affiliate of Amazon.com.ca, Inc. Cargojet is a key air cargo carrier for Amazon's middle mile transportation in Canada. This agreement is in conjunction with Amazon's and Cargojet's existing commercial agreement for overnight air cargo services and charters and to incentivize growth in Amazon's utilization of those services to support fast delivery for Amazon customers in Canada. Under the new strategic agreement, Cargojet will issue warrants to Amazon to purchase variable voting shares that will vest based on the achievement of commercial milestones related to Amazon's business with Cargojet. Cargojet expects the agreement to generate additional revenue growth and be meaningfully accretive to Cargojet's earnings and cash flows over time.\nAmazon utilizes Cargojet's overnight air network and charter aircraft services to move packages from Amazon facilities to other Amazon or last mile carrier locations before final delivery to customers. Speed and reliability in this component of the logistics network are critical for enabling consistent delivery performance for Amazon customers across Canada. \n\"Cargojet's entrepreneurial culture, combined with our core values of strong customer focus, have enabled Cargojet's customers to deliver and fulfill on their e-Commerce promises. This agreement will support Cargojet further solidify its vision and strong leadership in the air cargo industry,\" said Chairman of the Board James R. Crane. \n\"The commercial relationship the Cargojet team continues to build with Amazon has now allowed us to further strengthen and align our long-term strategic commercial interests. Our continuous commitment to...