- 28 August 2019
- Transport / Logistics Services
Amazon’s major Canadian air cargo carrier Cargojet has amended its strategic agreement with the online giant to speed up middle-mile deliveries.
The agreement is in addition to the two companies’ commercial agreement for overnight air cargo services. It is designed to grow Amazon’s use of Cargojet’s services.
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.
The current agreement has Cargoject flying parcels between Amazon facilities where final mile delivery takes place.
Chairman of the Board James R. Crane said: “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.”
“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 provide value added services enables us to earn all of our customers’ trust as the leading overnight air-network operator,” added Chief Executive Officer Ajay Virmani.
“Cargojet has been a key player in our Canadian middle mile operations for several years,” said Adam Baker, Vice President Global Transportation, Amazon. “We’re thrilled to build a longer-term relationship that will allow us to provide even faster service to Amazon customers in Canada.”