German DHL, one of the world’s leading international logistics companies, announced a new long-term strategic partnership with Cargojet, a Canadian-based cargo airline.
The initial agreement envisages mutual cooperation between the two companies for five years with an option to renew for a further two years. Cargojet will provide ACMI (lessor provides aircraft, crew, maintenance and insurance), CMI (crew, maintenance and insurance), and dry lease (provides aircraft only) services to support DHL’s international operations.
Cargojet will have twelve aircraft available for this purpose. For its part, DHL plans to acquire five additional Boeing 767 freighters during 2022 and 2023 to sustain the current growth of its network. Thanks to the e-commerce boom, its cargo capacity in the Americas increased by 18% in 2021.
In addition, DHL intends to be Cargojet’s inaugural Boeing 777x freighter customer. The new model is expected to begin operations in late 2023 or early 2024. It will be the most fuel-efficient cargo aircraft on the market. Since 2018, the German company has acquired 28 Boeing 777Fs.
“A longer-term strategic alignment with Cargojet will bring additional capacity and allow us to continue delivering the highest levels of service quality to the market”, said Travis Cobb, EVP, Global Network Operations & Aviation at DHL Express.
Ajay Virmani, CEO of Cargojet, said that the new agreement is a “remarkable milestone” for the company. “WWe 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” he added.
Finally, the deal involves DHL’s possible seven-year equity participation in Cargojet. The German company would receive warrants, with rights linked to the achievement of business milestones of up to 2.3 billion Canadians in turnover.
