Cargojet and DHL enter agreement for global air transport services
by CM Staff
The agreement mandates a term of five years with a renewal option for an additional two years.
MISSISSAUGA — Cargojet Inc. has entered a new long-term strategic agreement with DHL Network Operations Inc. to provide air-transportation services for DHL’s global network.
The agreement mandates a term of five years with a renewal option for an additional two years according to a company statement.
They expect the agreement will help Cargojet’s earnings and cash flows over time and help Cargojet diversify its portfolio of services.
The agreement also states that Cargojet will provide ACMI, CMI, charter, and aircraft dry lease services to DHL to support DHL’s international requirements for Europe and North, South, Central and Latin America as well as Asia.
Currently, the company says Cargojet uses 12 freighters to service DHL’s current requirements.
DHL announced plans to add five B-767 freighters during 2022 to 2023 in order to fulfill it’s anticipated network requirements.
Additionally, DHL intends to be Cargojet’s inaugural launch customer for the B-777 wide body long-range cargo aircraft, which the company expects will be deployed in late 2023 or early 2024.
“Earning the trust and confidence of Deutsche Post DHL Group is a remarkable milestone in Cargojet’s journey. We are even more excited about the opportunity to add value and earn the right to be a long-term strategic partner each and every day.” said CEO Dr. Ajay Virmani in a statement.
“This strategic partnership is a real tribute to our people who have worked extremely hard all through the pandemic while maintaining the industry best on-time performance and flexibility that has allowed us to earn this business.”