MONTREAL – Air Canada (TSX:AC.B) is exploring opportunities to collaborate with Cargojet Inc. (TSX:CJT), a specialized carrier that provides overnight deliveries across Canada for international airlines.
The two companies say they have signed a letter of intent to look at strategic initiatives to increase revenue and reduce costs by co-operating on sales and marketing as well as operational connections.
Closer ties between Cargojet, based in Mississauga, Ont., and Canada’s largest airline would be subject to obtaining regulatory approvals and finalizing documentation.
Cargojet, which provides scheduled overnight deliveries to 13 Canadian cities, announced last week that it had $225,000 of net income and $43.4 million of revenue in the third quarter ended Sept. 30.
By comparison, Air Canada had about $3 billion of revenue over the same period and reported $365 million of adjusted net income.