Cargojet secures stake in 21 Air

Canada-based Cargojet Airways this week secured a 25% stake in U.S.-based 21 Air. The investment will pave the way for Cargojet to expand its international operations within the United States by leveraging 21 Air’s cabotage rights. While Cargojet has long operated flights between Canada and the United States, as a Canadian operator, the airline has been unable to fly additional domestic segments before returning to Canada and has been plotting an investment in a U.S.-based carrier to remedy that issue and fuel international growth. [caption id="attachment_416412" align="alignright" width="560"] 21 Air has two 767-200Fs. (Photo/21 Air)[/caption] During an Aug. 6 call with analysts, Cargojet CEO Ajay Virmani hinted a deal was nearing completion. “Combining a U.S. and a Canadian carrier can certainly fill those kind of needs,” he said. The minority stake will allow 21 Air to operate aircraft on CMI, interchange or other similar commercial arrangements. Currently, 21 Air provides such services for Cargojet, integrators and other carriers using a fleet of 767 freighters, including interchange operations for Chile-headquartered LATAM. Cargo Facts had previously identified 21 Air as a likely option for a tie-up with a U.S.-based carrier . 21 Air has subleased 767-200BDSFs to 21 Air since 2019, and recent changes to the composition of Cargojet’s board of directors further hinted at a tie-up with 21 Air. Jim Crane, the newly appointed chairman of 21 Air, had previously served as chairman of Cargojet’s board of directors. Earlier this year, Crane resigned from the board “in order to pursue a business venture in the U.S. with whom Cargojet has a significantly expanding commercial relationship,” according to a March 17 statement from Cargojet. The 21 Air stake precedes the addition of at least eleven widebody freighter fleet additions planned between now and 2024. Within the next two years Cargojet expects to add seven 767Fs, at least five of which will be owned, and are being converted to freighter configuration by Israel Aerospace Industries. As soon as 2023, Cargojet plans to introduce the 777 platform and expects to operate up to four freighter-converted 777Fs by 2024, according to Virmani. Apart from the planned widebody freighter growth, Cargojet also picked up another 757-200, its second this year. The aircraft (22690) previously operated in the Mexican presidential fleet and will be converted to freighter configuration, according to Virmani. Last month, Cargojet began operating two 767-300BDSFs on a CMI basis for Amazon , while 21 Air began flying a 767-200BDSF on a CMI basis for DHL Express in June. Cargo Facts Symposium, taking place LIVE October 25-27 at the Wynn Las Vegas, is the essential event for stakeholders in the air cargo industry. Learn more and register at www.cargofactssymposium.com .

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