MISSISSAUGA, Ont. -- Cargojet says it has been awarded the domestic air cargo network services contract for the Canada Post group of companies.
The cargo carrier says it has signed an agreement for an initial seven-year term, with three, thirty-six month, renewal options.
It says in a release that projected revenues are estimated to be approximately $1 billion during the initial seven-year agreement, based on projected volumes.
Cargojet says the contract includes Purolator's national air cargo network.
The company says it will expand and enhance its domestic overnight network to handle the additional volumes,
"Cargojet and the Canada Post Group of Companies will work together to provide Canadians with world-class and flexible air cargo services in today's changing business environment," said Ajay Virmani, president and CEO of Cargojet.
Jacques Cote of Canada Post said customer demand is shifting from mail to parcel delivery due to online shopping.
"This move will drive operational efficiencies, lower our transportation costs and help ensure our parcel delivery remains competitive from a cost and reliability perspective," Cote said.
