Cargojet has renewed its strategic agreement with DHL Network Operations until 31 March 2033.
DHL will have two consecutive renewal options, each for an additional two-year term, potentially extending the term of the agreement until 31 March 2037.
Since commencing its business relationship with DHL in 2005, Cargojet has significantly broadened its service portfolio over the subsequent two decades, enhancing its operational scope and capabilities and turning this into a true partnership.
Under the agreement, Cargojet will offer its entire range of air transportation services including ACMI, CMI, charter and aircraft dry lease services to DHL to support DHL’s global logistics network.
Cargojet currently utilises a fleet of Boeing 767 and Boeing 757 freighters to service DHL’s global requirements.
Under this expanded strategic partnership, DHL will maintain a minimum monthly block hours guarantee and provide Cargojet with a preferred opportunity to fly additional routes as it rearranges or adds additional capacity globally.
Cargojet executive chairman Ajay Virmani said: “Securing the confidence of DHL Group underscores the strength of Cargojet’s value proposition as a longterm strategic partner.
“This deepened alliance is a testament to our team’s relentless commitment to delivering industry-leading on-time performance and operational flexibility.
“Their efforts to earn the trust of DHL every single day, continue to position Cargojet as a key enabler of global logistics,”
Travis Cobb, executive vice president of global operations and aviation at DHL Express, said: “Cargojet is an important strategic partner and delivers high quality, capacity and flexibility to DHL Express, operating key routes for us into Canada, Mexico, and Latin America.
“We are pleased to extend our longstanding relationship with Cargojet and look forward to future expansion where mutually beneficial to both organisations.”
In addition, to align interests and strengthen the long-term strategic relationship, Cargojet will fully terminate the warrants to acquire 1,645,000 voting shares issued to DHL in March 2022 and issue warrants to acquire up to 1 million of Cargojet’s outstanding voting shares, representing up to 6.63% of Cargojet’s shares (on a non-diluted basis as of the date hereof), at a price of C$93.61 per share over a period of eight years, with vesting tied to the delivery by DHL of up to C$3.2bn in business volume during the same term.
