TORONTO, July 15 /CNW/ - Cargojet Income Fund (the "Fund") (TSX: CJT.UN), Canada's leading domestic premium overnight air cargo network operator, announced today that it has sold its 55% interest in the Cargojet Regional Partnership (the "Partnership") to SkyLink Express Inc. ("SL Express") for a $3.2 million promissory note secured by aircraft owned by SL Express. SL Express previously held the other 45% interest in the Partnership, and will operate the regional business under its own trade name, Skylink Express. Cargojet will record a one-time non-cash loss of approximately $2.0 million on the sale of its 55% interest in the Partnership.
"The sale of our regional air cargo business was a difficult but necessary decision that was made in the best interests of our customers, our employees and our unitholders," said Ajay Virmani, President and CEO of Cargojet. "Sustaining a profitable regional air cargo business has been especially challenging, as recent economic conditions have resulted in a decline in customer demand and lower yields. The elimination of the drag on our financial and administrative resources will allow Cargojet to continue to focus upon and to seek further profitable growth opportunities in its national and international air cargo programs."
Cargojet is Canada's leading provider of time sensitive overnight air cargo services. Cargojet operates its network across North America, transporting over 750,000 pounds of time sensitive air cargo each business night, utilizing a fleet of thirteen B727, B757 and B767 all-cargo aircraft.
SOURCE Cargojet Inc.
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